Electra Battery Materials Corp V.ELBM

An interesting time in history

[Goatburner]

Like many it took me awhile to digest the significance of the report that DRC is halting all Cobalt concentrate exports, only to recant 24 hours later. I was always fully aware that the Cobalt we are going to receive from Congo is Cobalt hydroxide. My First response was oh S....! Such bad timing with due diligence going on. How are the banks going to receive that? Obviously, our source for Cobalt from DRC is not stable. And frankly if I was a bank I would be concerned. On the positive side, it underscores the necessity of having a North American supply chain independent of DRC and other third world Nations where we can be blackmailed at any given moment. I look to the moment as being cautiously positive but more reinforced in first Cobalt corporations vision of a secure North American supply chain. And even that will not be without issues. It's really hard to start a new mine in the USA due to environmental regulations and public outcry. We shareholders at FCC do have headwinds. Trent has a lot of work ahead of him.

[Starkicker]

China had incredible foresight to secure mineral rights and contracts through its Road and Belt program, where it built infrastructure in developing nations in exchange for rights to natural resources. We are about to find out how efficient regimes like China's Communist party are and how inefficient Democracy is.

[dothemathpeople]

Sourcing cobalt cons from the DRC is counter productive to theentire concept, and idea of clean sourcing.  The WHOLE idea in the beginning was to source cobalt from Cobalt, ON, and Idaho.  That went out the window for one simple reason; COST.  Then it went further out the window, for another; Glencore.  Then again, with what it will cost to actually produce anything in Idaho. &

[Starkicker]

The DRC's new agreement with China through the Belt and Road Initiative worries me most. Mine operators in DRC now have a new overlord.  https://roskill.com/news/cobalt-copper-china-strengthens-relations-with-drc-through-debt-relief-and-belt-and-road-initiative/

[Jordsword]

This acticle was published back in January of this year. Looks like FCC management is well aware of the risks as they have done exactly what is suggested in the article. Still the greatest risk could be the DRC not making good on the feed contract: However, a stronger Sino-Congolese partnership and China’s increasing control of copper and cobalt resources could pose a threat to western market

[Starkicker]

Seeing as how DRC's feedstock is FCC's only current pathway to revenue, and with China's clear intent on dominating the cobalt market, I would suggest the risk is substantial seeing how any cobalt mining in NA is years away.

[Jordsword]

I can agree to that as well. I also don't think management is an issue at all. They have taken many steps to reduce risk and have a clear vision of the future of this company. Some of the geopolitical problems are out of their control, but they made moves to ensure that NA governments are supportive, alternate sources of feed are in the works (recycling and Idaho) and are advancing financing

[Blackbriar44]

You are right on the money dothemathpeople.