Eight Capital analysts David Tabolt and Joe Fars recently gave their three cobalt top stocks to watch. Here’s a brief overview.
While cobalt stocks and prices oscillated in 2018, cobalt continues to be a sought-after commodity, with many carmakers and technology companies trying to strike deals directly with miners to secure long-term supply.
Apple (NASDAQ:AAPL), Volkswagen (FWB:VOW) and BMW (ETR:BMW) are just some of the companies that have joined the race for cobalt, a key element in the lithium-ion batteries used to power electric cars.
With demand for electric cars set to surge, the need for cobalt is expected to grow. And despite a price fall this year, analysts at Eight Capital remain optimistic about the future of this battery metal. They see cobalt reaching US$42 per pound by 2022, and recently shared their three top picks in the space.
Here, the Investing News Network looks at the three cobalt stocks to watch identified by Eight Capital analysts David Talbot and Joseph Fars. All stats were accurate at close of day on December 12, 2018.
1. eCobalt Solutions (TSX:ECS)
Current share price: C$0.66; market cap: C$105.63 million
The first cobalt stock on the list is eCobalt Solutions. It is focused on providing clean cobalt products essential for the rapidly growing rechargeable battery and renewable energy sectors, made safely, responsibly and transparently in the US. eCobalt’s main asset is its Idaho cobalt project.
According to the company, the Idaho cobalt project is the only near-term, environmentally permitted primary cobalt deposit in the US. Its latest update on the asset came in October. eCobalt discussed several aspects of progress and said a new feasibility study is in the last stretches of finalization.
eCobalt also has a handful of other non-cobalt projects throughout North America. These include additional properties in Idaho, as well as assets in Canada and Mexico.
2. Cobalt 27 Capital (TSXV:KBLT)
Current share price: C$3.90; market cap: C$330.82 million
The next cobalt stock listed is Cobalt 27 Capital, which bills itself as a leading electric metals investment vehicle with direct exposure to metals that are integral to battery technology.
The company owns physical cobalt, and signed a deal for the world’s first producing cobalt-nickel stream on the Ramu nickel-cobalt mine in May. Later in the year it acquired a US$300-million cobalt stream on Vale’s (NYSE:VALE) Voisey’s Bay mine. Click here to see our latest interview with CEO Anthony Milewski.
3. First Cobalt (TSXV:FCC)
Current share price: C$0.20; market cap: C$67.86 million
The third cobalt stock on the list is First Cobalt, an exploration and development company whose main focus is its Iron Creek project in Idaho. It has an inferred mineral resource of 26.9 million tonnes grading 0.11 percent cobalt equivalent.
The company is also developing the Greater Cobalt project, which includes over 50 formerly producing mines. Lastly, First Cobalt owns a cobalt refinery, which it says is the only refinery in North America that can produce battery materials.
First Cobalt has been drilling at Iron Creek throughout 2018, and completed the inferred resource for the asset in September. It recently began testing cobalt hydroxide material as feedstock for its refinery.
With cobalt prices down and Eight Capital’s continued confidence in the industry, do you see this as a buying opportunity? Tell us in the comments.
This is an updated version of an article originally published by the Investing News Network in February 2018.
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Securities Disclosure: I, Amanda Kay, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: eCobalt Solutions and First Cobalt are clients of the Investing News Network. This article is not paid-for content.