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The Company is advancing the NICO Project toward a construction decision with U.S. & Canadian Government financial support from critical minerals supply chain security programs
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Fortune Minerals
Investor Insights
The NICO project’s receipt of substantial government funding to date and Fortune Minerals’ strong relations with the Indigenous and local communities in the Northwest Territories create a compelling case for investors considering a battery metals play with significant gold reserves.
Overview
Cobalt is an often-overlooked critical mineral in the transition to clean energy, required to make the cathodes of many lithium-ion batteries used in electric vehicles (EVs), stationary storage cells and consumer electronics. Cobalt is also used in superalloys for the aerospace industry, cemented carbides, cutting tools, permanent magnets, surgical implants, catalysts, pigments and agricultural products.
The global cobalt market is expected to reach a volume of almost 306,000 metric tons by 2028. Cobalt outlook in the long-term is expected to double by 2030 with the EV segment accounting for 89 percent of growth, energy storage at 3 percent and superalloys at 2 percent.
Fortune Minerals (TSX:FT,OTCQB:FTMDF) is a Canadian mining company developing its wholly owned, vertically integrated NICO primary cobalt project in Canada to produce cobalt chemicals for the rapidly expanding lithium-ion battery industry. The NICO mineral reserves also contain 1.1 million ounces (Moz) of gold, 12 percent of global bismuth reserves, and copper as a minor by-product. NICO comprises a proposed mine and mill in the Northwest Territories that will produce bulk concentrates that will be shipped to a planned refinery in Alberta. The concentrates from the mine will then be processed into energy and eco-metals for the growing clean energy economy.
NICO is a primary cobalt deposit, but the mineral reserves also contain 1.1 Moz of gold as a countercyclical and highly liquid co-product that can be easily converted to cash. The gold contained in the NICO deposit stands out among other cobalt projects, where the metal is produced primarily as a by-product of copper or nickel.
NICO is also the largest known deposit of bismuth in the world with about 12 percent of global reserves – even though it represents only about 10 percent of the company’s projected revenue from operations at recent metal prices.
The cobalt, bismuth and copper contained in the NICO deposit are all classified as critical minerals by Canada, as they have essential use in new technologies, cannot be easily substituted with other minerals, and because supply chains may be threatened by geopolitical issues.
The mineral reserves for the NICO deposit were estimated in compliance with NI-43-101 and total 33.1 million tonnes (Mt), containing 82.3 million lbs (37,341 tonnes) of cobalt, 1.1 Moz of gold, 102.1 million lbs (46,325 tonnes) of bismuth and 27.2 million lbs (12,296 tonnes) of copper to support a 20-year mine life at a mill throughput rate of 4,650 metric tons of ore per day.
Sums of the combined reserves may not exactly equal sums of the underground and open pit reserves due to rounding errors.
The mineral reserves are based on 327 drill holes plus surface trenches and underground test mining verifying the deposit grades, geometry and mining conditions. Both of Fortune Minerals’ deposits are open for potential expansion, extending the deposits with additional drilling or identifying new zones or deposits.
The Government of Canada is providing funding of up to $714,500 for the planned cobalt sulphate process pilot and other metallurgical test work at the NICO project. Additionally, the Government of Alberta, through the Alberta Innovates, has also approved additional funding contributions of up to $172,670 toward the budgeted program costs under its Clean Resources Continuous Intake Program. The funds will be used to support a mini-pilot at SGS Canada to confirm certain process design criteria and improvements to the NICO project metallurgical processes.
Fortune Minerals also received an C$8.74 million grant from the United States Department of Defense to expand the domestic capacity and production of cobalt for the battery and high strength alloy supply chains. The company recently secured a total of C$17 million in financial support from the Canadian and US governments to advance the NICO project.
The company’s other assets include the Sue-Dianne deposit, which has near-surface, copper-silver-gold deposits that can feed into the NICO mill.
Company Highlights
- Fortune Minerals is building a reliable, vertically integrated North American critical minerals project to produce cobalt chemicals for the rapidly expanding lithium-ion battery industry.
- The NICO project is one of a few advanced-stage cobalt projects outside the Democratic Republic of the Congo, with an average annual production of approximately 1,800 tons of cobalt units in the first 14 years of the 20-year mine life.
- The company's flagship asset’s primary cobalt production is independent of nickel and copper mining and contains more than 1 million ounces (Moz) of in-situ co-product gold.
- Fortune Minerals has received environmental assessment approval for the mine, concentrator and access road in the Northwest Territories.
- The company has developed strong relationships with Indigenous and local communities and governments, which paved the way for federal, Northwest Territories and Tlicho Governments' approval of the project and financial support for local infrastructure, including the $400 million Tlicho all-season highway project to Whati that recently opened to the public, and more than $800,000 in federal and provincial funding for exploration work at NICO.
- Collaboration with Rio Tinto to assess options to improve recovery of bismuth and cobalt contained in Rio Tinto’s Kennecott smelter waste streams.
- Fortune Minerals recently secured a total of C$17 million in funding from the Canadian and US governments to advance the NICO project.
- An experienced management team leads Fortune Minerals towards fully developing and capitalizing on its assets.
Key Project
NICO Cobalt Project and Reserves
The NICO cobalt-gold-bismuth-copper deposit is an IOCG or Olympic Dam-type mineral deposit situated on 5,140 hectares of mining leases, located 160 kilometers northwest of the City of Yellowknife and 50 kilometers north of Whati in Canada's Northwest Territories.
Fortune Minerals has spent more than C$135 million preparing technical, environmental and social studies to support the development of the NICO cobalt-gold-bismuth-copper project. Environmental assessment approval and the major mine permits have been received for the planned facilities in the Northwest Territories. The project is expected to be a reliable North American producer of critical minerals with supply chain transparency and custody control of ethically produced metals from ores through to the production of value-added metals and chemicals.
Project Highlights:
- Excellent Infrastructure in Place and Under Development: There is all-season road access to Whati via Highway 9, a $400-million design/build/operate/maintain private-public partnership between the Government of the Northwest Territories and North Star Infrastructure. The federal government contributed up to $53 million of the project's capital costs through the Canadian Infrastructure Fund. Fortune Minerals has received environmental assessment approval to build a 50-kilometer spur road from Whati to the mine site, which is included in the mine site capital costs. With the construction of the road, Fortune will be able to transport metal concentrates from the mine to the railway at Enterprise or Hay River and deliver them by rail to the company's planned refinery in Alberta. The NICO leases are located 25 kilometers west of the Snare hydro complex and electrical grid servicing Yellowknife.
- Large, Well-defined Polymetallic Deposit: NICO and the company's satellite Sue-Dianne copper-silver-gold deposit are classified as iron oxide-copper-gold (IOCG)-type deposits with world-class global analogs, including Olympic Dam in South Australia, the Salobo and Sossego deposits in Brazil, and the Candelaria district deposits in Chile. They occur in clusters of multiple deposits, commonly aggregating more than a billion tonnes in similar tectonic and geological environments.
- Encouraging Results from 2021 Exploratory Drilling: The company’s exploratory drilling program consisted of 13 drill holes totaling 2,482 meters. Promising results from the campaign include:
- 3.17 meters, averaging 0.42 percent cobalt, 0.55 g/t gold, and 0.37 percent bismuth at a depth of 28.7 meters, including 1.05 meters, grading 0.99 percent cobalt, 0.25 g/t gold, and 0.56 percent bismuth;
- 4.8 meters, averaging 0.12 percent cobalt and 0.50 g/t gold at a depth of 8 meters, including 1.98 meters, averaging 0.26 percent cobalt and 1.13 g/t gold;
- 2.31 meters, averaging 0.11 percent cobalt and 0.87 g/t gold at a depth of 139.6 meters, including 1.16 meters, grading 0.20 percent cobalt and 1.63 g/t gold.
- 2014 Micon NICO Feasibility Study: A positive feasibility study was completed in 2014 by Micon International Limited that identified the mineral reserves to support a 20-year mine life at a mill throughput rate of 4,650 metric tons of ore per day. The feasibility study and previous front-end engineering and design study by Aker Solutions contemplated combined open-pit and underground mining during the first two years of the mine life, followed by open-pit-only mining. The company has retained Worley Canada Services to lead the preparation of an updated Feasibility Study that will include project optimizations, current capital and operating costs, and current commodity prices.
Fortune Minerals entered into a new option agreement with JFSL Field Services ULC to purchase the brownfield industrial site in Lamont County, Alberta where it plans to construct its hydrometallurgical facility (Alberta Facility). The Alberta Facility would process metal concentrates from Fortune's planned NICO cobalt-gold-bismuth-copper mine and concentrator in the Northwest Territories. It will also provide a reliable domestic supply of critical minerals for the energy transition and other new technologies.
Alberta Hydrometallurgical Facility Site
The Alberta Facility will produce cobalt sulphate for the North American lithium-ion battery industry, bismuth ingots (12 percent of global reserves) and copper cement - with more than one million ounces of in-situ gold as a countercyclical and highly liquid co-product. Fortune also has a process collaboration with Rio Tinto examining the feasibility of processing materials produced from Kennecott Smelter wastes in Utah at the Alberta Facility to increase cobalt and bismuth production.
Fortune Minerals is advancing the NICO Project toward a construction decision with US and Canadian government financial support from critical minerals supply chain security programs. The company has retained Worley Canada Services to conduct additional engineering and lead the preparation of an updated Feasibility Study for the NICO. Worley will further assist the company in processing the permits for the brownfield site to host the proposed hydrometallurgical facility.
Sue-Dianne Copper Deposit
The Sue-Dianne copper-silver-gold deposit located near the NICO deposit belongs to IOCG class of deposits with world-class global analogues and is a potential future source of incremental mill feed to extend the life of the NICO mill and concentrator.
Management Team
Mahendra Naik - Chairman and Director
Mahendra Naik is a chartered accountant and was one of the founding directors and key executives who started IAMGOLD Corporation, a TSX and NYSE-listed gold mining company. As chief financial officer from 1990 to 1999, he was involved in the negotiations of the Sadiola and Yatela mine joint ventures with Anglo American, and the US$400 million project debt financing for the development of the mines. In addition, he was involved in more than $150 million in equity financings including the IPO for IAMGOLD. Naik is currently the chief executive officer of FinSec Services., a private business advisory company and a director and member of the audit and compensation committees for IAMGOLD. In addition, Naik is a director and member of audit, compensation and risk/control committees of FirstGlobalData Limited, Goldmoney Network Limited and Jameson Bank.
Robin E. Goad - President, CEO and Director
Robin Goad is a professional geologist with 30 years of experience in the mining and exploration industries. Before founding Fortune in 1988, Goad worked for large companies, including Noranda and Teck, as a consultant in the resource industry. Goad is a director of the NWT and Nunavut Chamber of Mines and has served as president and director of other TSX-listed mineral exploration and development companies.
Patricia Penney - Interim CFO
Patricia Penney is a chartered accountant with 20 years of accounting and audit experience. Before Fortune, she was a senior manager with Caceis Canada., an alternative fund administrator.
Richard Schryer - Vice-president of Regulatory and Environmental Affairs
Richard Schryer is an aquatic scientist with more than 25 years of experience in mine permitting, environmental assessments, environmental studies and monitoring. Schryer also worked with Golder Associates.
Alex Mezei - Chief Metallurgist
Alex Mezei is an independent metallurgical consultant with 40 years of international process engineering experience, providing general and specialized services in metallurgical process flowsheet testing, design, development, derisking and implementation. Mezei has been involved in process economics assessment for several projects. Specific technical expertise includes hydrometallurgy, liquid-solid separation, rheology, and mineral processing. Projects and commodities include extraction of cobalt, lithium, nickel, graphite, manganese, as well as base, rare and precious metals. In addition, Mezei provides specialized expertise in recycling, oil sands and carbon capture projects. Mezei is a Qualified Person for the purposes of National Instrument 43-101.
David Knight - Corporate Secretary
David Knight is a partner with WeirFoulds LLP. David is widely recognized for his more than 30 years of experience. He specializes in securities law, including public and private financings, mergers and acquisitions, stock exchange listings and regulatory compliance and acts for investment dealers and issuers. Knight is a member of the Law Society of Upper Canada.
Troy Nazarewicz - Investor Relations Manager
Troy D. Nazarewicz has 30 years of experience in the capital markets as a portfolio manager with MacDougall, MacDougall & MacTier and in his investor relations role at Fortune. He also worked as a business development manager with a design and marketing firm.
Fortune Minerals Provides an Update of NICO Project Test Work, Rio Tinto Process Collaboration & Feasibility Study
Fortune Minerals Limited (TSX: FT) (OTCQB: FTMDF) (" Fortune " or the " Company ") ( www.fortuneminerals.com ) is pleased to provide an update of ongoing work on the vertically integrated NICO cobalt-gold-bismuth-copper critical minerals project in Canada (" NICO Project "). The NICO Project is comprised of a planned mine and concentrator in the Northwest Territories (" NWT ") and a hydrometallurgical processing facility in Lamont County, Alberta where concentrates from the mine, and other feed sources, will be processed to value-added products needed for the energy transition, new technologies and defense. Fortune has been awarded ~C$17 million of non-dilutive contribution funding from the U.S. Department of Defense (" DoD "), Natural Resources Canada (" NRCan "), and Alberta Innovates to help finance the work needed to bring the NICO Project to a project finance and construction decision (see news releases dated, December 5, 2023, and May 16, 2024). Development of the NICO Project would provide a reliable North American supply of cobalt sulphate, gold doré, bismuth ingots, and copper precipitate enhancing domestic supply chains for three metals identified on the Canadian and U.S. Government critical minerals lists and a highly liquid and countercyclical gold co-product to mitigate metal price volatility.
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Highlights
- U.S. & Canadian Government supported test work, engineering, updated Feasibility Study & permitting programs progressing
- New comminution & flotation circuit designs to reduce capital & operating costs
- Concentrator modifications to improve gold, bismuth & cobalt recoveries
- Smaller hydrometallurgical bismuth circuit with lower capital costs & higher recoveries
- Successful leaching & cementation of blended Rio Tinto & Fortune bismuth streams
Feasibility Study Update
Fortune retained Worley Canada Services Ltd. (" Worley ") to lead the engineering for an updated Feasibility Study assessing the economics of the NICO Project at current costs and commodity prices. Worley is also assisting Fortune with permitting for the brownfield site in Lamont County, Alberta where the Company plans to construct its hydrometallurgical facility. The NICO Project was previously assessed in a positive Feasibility Study by Micon International Limited (" Micon ") in 2014 but is now out of date. Micon, P&E Mining Consultants Inc. (" P&E ") and WSP Golder, who participated in the 2014 study, are also engaged to assist Worley with preparation of the updated study and NI 43-101 Technical Report. The Feasibility Study is being supported with funding from the U.S. DoD and NRCan's Global Partnerships Initiative (" GPI ") contribution funding.
The updated Feasibility Study will incorporate a number of improvements to the NICO Project identified by Fortune and Worley to deliver a more financially robust development. These include: the superior brownfield Alberta hydrometallurgical facility site with existing buildings; the new Tlicho Highway to Whati, NWT; a new geological block model with more constrained ore zone boundaries to reduce modelling dilution and better differentiate high-grade resource blocks for earlier processing; a new mine plan and production schedule with a stockpiling strategy to accelerate the processing of higher margin ores and reduce near-surface waste rock stripping; better equipment choices; and process optimizations from recent test work.
Worley has completed value enhancement studies improving the grinding and comminution, and flotation circuits for the planned concentrator in the NWT. A High-Pressure Grinding Rolls (" HPGR ") and vertical mills will replace parts of the previously designed circuit and ball mill with an anticipated ~C$7 million reduction in capital costs and ~C$1.3 million reduction in annual operating costs from a smaller plant footprint utilizing more energy efficient equipment. HPGR variability tests are in progress at SGS Canada Inc. (" SGS ") in Lakefield, Ontario to provide additional data for the detailed design.
Worley has also reviewed the Company's historical flotation test work and piloting information and has identified opportunities using Jameson flotation cells to recover additional fine, 5- to 20-micron sized gold and bismuth particles contained in NICO deposit ores. Jameson cell tests were completed at SGS at a finer (minus 44-micron) grind size and the Company is pleased to report that these tests have confirmed an improvement in gold, bismuth and cobalt recoveries for the concentrator. A carbon column is also being designed into the secondary flotation circuit to capture the ~5% of contained gold that previously would have been dissolved and lost in the process water during bismuth and cobalt separation. Fortune is also investigating other options to reduce potential gold losses during the processing of high-grade, gold-rich ores.
Worley has also completed a minor realignment of the NICO access road design to reduce construction costs and has also completed the process flow diagrams, piping and instrumentation diagrams, and mass balance for the NWT concentrator. As part of the ongoing Feasibility Study improvements, Worley is also working on updated concentrator and hydrometallurgical facility designs to advance the vertically integrated development.
Test Work Update
Fortune collected between 15 and 16 metric tonnes of ores from its earlier test mining stockpiles at the NICO mine site and shipped this material to SGS for metallurgical test work and piloting. The test work is being financially supported with contribution funding from NRCan's GPI and a $715,000 award in 2023 from the Critical Minerals Research Development and Demonstration (" CMRDD "), with additional financial support coming from Alberta Innovates' Clean Resources Continuous Intake Program and the U.S. DoD. Phase 2 of the program, consisting of crushing, grinding and bulk and secondary flotation was successfully completed in Q3, 2024, producing gold-bearing cobalt and bismuth concentrates for hydrometallurgical testing.
The Phase 3 hydrometallurgical work is in progress and the results achieved to date are exceeding the Company's expectations. Ferric chloride leaching of bismuth concentrate followed by cementation and purification test work achieved 97% bismuth recoveries, producing a cement grading up to 95% bismuth, and averaging about 0.2% iron as the main impurity. The data was used to support the bismuth circuit process design criteria on the basis of a 66% reduction of the leaching residence time, from three hours to one hour. Overall, the design criteria are predictive of a significant material reduction in the size, capital and operating costs for the bismuth circuit for the hydrometallurgical plant. The results are also predictive of about a 2% higher bismuth recovery than initially estimated for the bismuth leaching and cementation circuits. Fortune has retained XPS Industry Relevant Solutions to conduct the smelting and refining parts of the bismuth test work and complete the design of the bismuth pyrometallurgical circuit.
A preliminary pressure oxidation (" POX ") test on the cobalt concentrate was recently completed, but more comprehensive cobalt processing tests will be carried out in the first quarter of 2025. The cobalt test work will also include a value enhancement optimization of sequential gypsum precipitation to validate the production of a gypsum by-product from the autoclave effluent. If successful, a saleable gypsum by-product would provide a material improvement to the hydrometallurgical facility overall revenues and reduce waste disposal costs for the process residue.
Rio Tinto Process Collaboration
Fortune has a process collaboration agreement with Rio Tinto investigating the feasibility of recovering additional cobalt and bismuth at the Alberta hydrometallurgical facility by processing precipitates produced from Kennecott smelter wastes in Utah. Rio Tinto successfully generated a high-grade bismuth oxychloride intermediate from its Utah process streams and shipped samples of this material to SGS for testing using Fortune's process criteria as well as blending with NICO bismuth concentrates. Leaching and cementation tests carried out on the Rio Tinto material blended with NICO bismuth concentrate were very successful, validating no material change in bismuth recoveries or metallurgical performance relative to treating unblended NICO bismuth concentrate. The feasibility of processing Rio Tinto material at the Alberta Hydrometallurgical facility has therefore been confirmed and additional work is planned by both companies to advance the collaboration. These blending validation studies are financially supported by NRCan's GPI contribution funding and the U.S. DoD.
About the NICO Project
Fortune has expended approximately C$140 million to advance the NICO Project from an in-house mineral discovery to a near construction-ready development. The Company has secured the environmental assessment approval and the major mine permits for the facilities in the NWT and the municipal planning approvals for the Alberta hydrometallurgical facility. Additional permitting is required at both sites and is in progress with partial funding support from the U.S. DoD.
The NICO deposit and planned mine is situated in Tlicho Territory, approximately 160 km northwest of the City of Yellowknife and 50 km north of the community of Whati where the new Tlicho Highway currently terminates. A spur road from Whati is planned as part of the development to enable trucking concentrates to the railhead at Enterprise, NWT for delivery to Alberta and downstream processing.
The NICO deposit contains open pit and underground Proven and Probable Mineral Reserves totaling 33.1 million tonnes containing 1.11 million ounces of gold, 82.3 million pounds of cobalt, 102.1 million pounds of bismuth, and 27.2 million pounds of copper to support a ~20-year mine life. Fortune also owns the Sue-Dianne satellite copper deposit located 25 km north of the NICO deposit and is a potential future source of incremental mill feed for the Company's planned concentrator. NICO and Sue-Dianne are iron oxide copper-gold (" IOCG ")-type mineral deposits with world class global analogues that support the exploration potential of the area and Fortune's properties.
Ores from the NICO deposit will be mined primarily by open pit methods with a low waste to ore strip ratio. Portions of the higher-grade Mineral Reserves would be mined by underground open stoping methods to accelerate cash flows during early years of the mine life using the existing ramp and underground workings for access and ore haulage.
NICO ores will be processed in a concentrator constructed at the mine site with a 4,650 metric tonnes per day mill throughput rate and a low (4%) mass pull during bulk flotation that captures the recoverable metals in only 180 tonnes of bulk concentrate per day. A very efficient secondary flotation process separates the ore minerals into gold-bearing cobalt and bismuth concentrates for low-cost transportation by truck and rail to Alberta.
The hydrometallurgical facility is planned to be constructed in Lamont County in Alberta's Industrial Heartland, approximately 50 km northeast of Edmonton. Cobalt concentrate will be processed by POX in an autoclave to dissolve the contained metals, followed by sequential neutralization, copper cementation, and solvent extraction purification and crystallization of cobalt sulphate heptahydrate. The bismuth concentrate will be processed by ferric chloride leaching, followed by cementation, and smelting to 99.995% bismuth ingots. Gold will be recovered by leaching the combined autoclave residue, followed by carbon elution and smelting to doré bars.
Development of the NICO Project would provide a reliable, vertically integrated domestic supply of cobalt, gold, bismuth and copper with supply chain transparency and custody control of the metals from ores through to the production of value-added products. Fortune's cobalt production is targeting the lithium-ion rechargeable battery industry for use in electric vehicles, portable electronics and stationary energy storage cells. The NICO deposit contains 12% of global bismuth reserves and the ingots produced by Fortune will be marketed for automotive glass and steel coatings, low melting temperature and dimensionally stable alloys, and an environmentally safe and non-toxic replacement for lead in brass, solder, steel, aluminum and galvanizing alloys, paint, radiation shielding, ceramic glazes, ammunition and fishing weights. New applications also include environmentally safe plugs to properly seal decommissioned oil and gas wells, magnets for EV powertrains, and alloys used in the nuclear and defense industries. Notably, gold, bismuth and copper prices have all been increasing and compensate for the short-term weakness in the cobalt price.
For more detailed information about the NICO Mineral Reserves and certain technical information in this news release, please refer to the Technical Report on the NICO Project, entitled "Technical Report on the Feasibility Study for the NICO-Gold-Cobalt-Bismuth-Copper Project, Northwest Territories, Canada", dated April 2, 2014 and prepared by Micon International Limited which has been filed on SEDAR and is available under the Company's profile at www.sedar.com .
The disclosure of scientific and technical information contained in this news release have been approved by Robin Goad, M.Sc., P.Geo., President and Chief Executive Officer of Fortune and Alex Mezei, M.Sc., P.Eng. Fortune's Chief Metallurgist, who are "Qualified Persons" under National Instrument 43-101.
About Fortune Minerals
Fortune is a Canadian mining company focused on developing the NICO cobalt-gold-bismuth-copper project in the Northwest Territories and Alberta. Fortune also owns the satellite Sue-Dianne copper-silver-gold deposit located 25 km north of the NICO deposit and is a potential future source of incremental mill feed to extend the life of the NICO concentrator.
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This press release contains forward-looking information and forward-looking statements within the meaning of applicable securities legislation. This forward-looking information includes statements with respect to, among other things, the exercise of the option by the Company and the purchase of the JFSL site, the construction of the proposed Hydrometallurgical Facility at the JFSL site, the potential for expansion of the NICO Deposit and the Company's plans to develop the NICO Project. Forward-looking information is based on the opinions and estimates of management as well as certain assumptions at the date the information is given (including, in respect of the forward-looking information contained in this press release, assumptions regarding: the successful completion of the Company's due diligence investigations on the JFSL site, the Company's ability to secure the necessary financing to fund the exercise of the option and complete the purchase of the JFSL site, the Company's ability to complete construction of a NICO Project Hydrometallurgical Facility; the Company's ability to arrange the necessary financing to continue operations and develop the NICO Project; the receipt of all necessary regulatory approvals for the construction and operation of the NICO Project and the related Hydrometallurgical Facility and the timing thereof; growth in the demand for cobalt; the time required to construct the NICO Project; and the economic environment in which the Company will operate in the future, including the price of gold, cobalt and other by-product metals, anticipated costs and the volumes of metals to be produced at the NICO Project). However, such forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. These factors include the risks that the 2021 drill program may not result in a meaningful expansion of the NICO Deposit, the Company may not be able to complete the purchase of the JFSL site and secure a site for the construction of a Hydrometallurgical Facility, the Company may not be able to finance and develop NICO on favourable terms or at all, uncertainties with respect to the receipt or timing of required permits, approvals and agreements for the development of the NICO Project, including the related Hydrometallurgical Facility, the construction of the NICO Project may take longer than anticipated, the Company may not be able to secure offtake agreements for the metals to be produced at the NICO Project, the Sue-Dianne Property may not be developed to the point where it can provide mill feed to the NICO Project, the inherent risks involved in the exploration and development of mineral properties and in the mining industry in general, the market for products that use cobalt or bismuth may not grow to the extent anticipated, the future supply of cobalt and bismuth may not be as limited as anticipated, the risk of decreases in the market prices of cobalt, bismuth and other metals to be produced by the NICO Project, discrepancies between actual and estimated Mineral Resources or between actual and estimated metallurgical recoveries, uncertainties associated with estimating Mineral Resources and Reserves and the risk that even if such Mineral Resources prove accurate the risk that such Mineral Resources may not be converted into Mineral Reserves once economic conditions are applied, the Company's production of cobalt, bismuth and other metals may be less than anticipated and other operational and development risks, market risks and regulatory risks. Readers are cautioned to not place undue reliance on forward-looking information because it is possible that predictions, forecasts, projections and other forms of forward-looking information will not be achieved by the Company. The forward-looking information contained herein is made as of the date hereof and the Company assumes no responsibility to update or revise it to reflect new events or circumstances, except as required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250108515555/en/
Fortune Minerals Limited
Troy Nazarewicz
Investor Relations Manager
info@fortuneminerals.com
Tel: (519) 858-8188
www.fortuneminerals.com
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Fortune Minerals Announces Second Draw From Convertible Securities Agreement With The Lind Partners
Proceeds to provide working capital & pre-fund government supported work programs
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
Fortune Minerals Limited (TSX: FT) (OTCQB: FTMDF) (" Fortune " or the " Company ") ( www.fortuneminerals.com ) is pleased to announce that it has drawn down an additional C$1,575,000 (the " Second Convertible Security ") from its convertible security funding agreement with Lind Global Fund II, LP, managed by The Lind Partners (together, " Lind ") (see news release dated May 22, 2024). The proceeds from this Second Convertible Security drawdown will be used for general working capital purposes and to pre-fund some of the government supported work on the vertically integrated NICO Cobalt-Gold-Bismuth-Copper Critical Minerals Project (" NICO Project ") (see news releases dated, May 16, 2024, and December 5, 2023). Development of the NICO Project would provide a reliable North American supply of cobalt sulphate, gold doré, bismuth ingots, and copper cement enhancing domestic supply chains for three Critical Minerals with a highly liquid and countercyclical gold co-product to mitigate metal price volatility.
The Second Convertible Security has a two-year term, a face value of C$1,890,000 and is secured by a lien against the Company's assets. Lind will be entitled to incrementally convert the face value amount of the Second Convertible Security over a 24-month period, subject to certain limits, at a conversion price equal to 85% of the five-day trailing volume weighted average price of Fortune's shares (" VWAP ") prior to the date of conversion. Commencing 60 days after the shares issuable under this convertible security become free trading, Fortune has the right to repurchase the Second Convertible Security, subject to Lind's option to convert up to one third of the face value into Fortune common shares prior to such repurchase at a conversion price equal to 85% of the 5-day VWAP. Lind will also receive a closing fee of C$60,000 and 16,338,174 common share purchase warrants at an exercise price of $0.0609 per common share for 60 months from the date of issuance after closing.
This press release shall not constitute an offer to sell or solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements.
About The Lind Partners:
The Lind Partners manages institutional funds that are leaders in providing growth capital to small- and mid-cap companies publicly traded in the US, Canada, Australia and the UK. Lind's multi-strategy funds make direct investments ranging from US$1 to US$30 million, invest in syndicated equity placements and selectively buy on market. Having completed more than 200 direct investments totaling over US$2 billion in transaction value, Lind's funds have been flexible and supportive capital partners to investee companies since 2011.
About Fortune Minerals:
Fortune is a Canadian mining company focused on developing the NICO cobalt-gold-bismuth-copper critical minerals project in Canada's Northwest Territories and Alberta. Fortune also owns the satellite Sue-Dianne copper-silver-gold deposit located 25 km north of the NICO Deposit and is a potential future source of incremental mill feed to extend the life of the NICO mill and concentrator.
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This press release contains forward-looking information and forward-looking statements within the meaning of applicable securities legislation. This forward-looking information includes statements with respect to, among other things, additional drawdowns under the convertible security funding agreement, use of the second drawdown under the convertible security funding agreement, and the Company's plans to develop the NICO Project. Forward-looking information is based on the opinions and estimates of management as well as certain assumptions at the date the information is given (including, in respect of the forward-looking information contained in this press release, assumptions regarding: final approval by the TSX in respect of the convertible security funding agreement and related matters; the Company's ability to complete construction of a NICO Project refinery; the Company's ability to arrange the necessary financing to continue operations and develop the NICO Project; the receipt of all necessary regulatory approvals for the construction and operation of the NICO Project, including the planned NICO cobalt-gold-bismuth-copper mine and concentrator and the timing thereof; growth in the demand for cobalt; the time required to construct the NICO Project; and the economic environment in which the Company will operate in the future, including the price of gold, cobalt and other by-product metals, anticipated costs and the volumes of metals to be produced at the NICO Project). However, such forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. These factors include the risks that the TSX may not provide final approval in respect of the convertible security funding agreement and related matters, that global geopolitical situations may interfere with the Company's ability to continue development of the NICO Project, the Company may not be able to finance and develop NICO on favourable terms or at all, uncertainties with respect to the receipt or timing of required permits, approvals and agreements for the development of the NICO Project, including the related hydrometallurgical refinery, the construction of the NICO Project may take longer than anticipated, the Company may not be able to secure offtake agreements for the metals to be produced at the NICO Project, the Sue-Dianne Property may not be developed to the point where it can provide mill feed to the NICO Project, the inherent risks involved in the exploration and development of mineral properties and in the mining industry in general, the market for products that use cobalt or bismuth may not grow to the extent anticipated, the future supply of cobalt and bismuth may not be as limited as anticipated, the risk of decreases in the market prices of cobalt, bismuth and other metals to be produced by the NICO Project, discrepancies between actual and estimated Mineral Resources or between actual and estimated metallurgical recoveries, uncertainties associated with estimating Mineral Resources and Reserves and the risk that even if such Mineral Resources prove accurate the risk that such Mineral Resources may not be converted into Mineral Reserves once economic conditions are applied, the Company's production of cobalt, bismuth and other metals may be less than anticipated and other operational and development risks, market risks and regulatory risks. Readers are cautioned to not place undue reliance on forward-looking information because it is possible that predictions, forecasts, projections, and other forms of forward-looking information will not be achieved by the Company. The forward-looking information contained herein is made as of the date hereof and the Company assumes no responsibility to update or revise it to reflect new events or circumstances, except as required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241223108910/en/
For further information please contact:
Fortune Minerals Limited
Troy Nazarewicz
Investor Relations Manager
info@fortuneminerals.com
Tel: (519) 858-8188
www.fortuneminerals.com
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Fortune Minerals Retains Worley to Update the NICO Project Feasibility Study and Alberta Site Permitting
NICO Project development advancing with U.S. and Canadian Government financial support
Fortune Minerals Limited (TSX: FT) (OTCQB: FTMDF) (" Fortune " or the " Company ") ( www.fortuneminerals.com ) is pleased to announce that it has retained Worley Canada Services Ltd. (" Worley ") to conduct additional engineering and lead the preparation of an updated Feasibility Study for the NICO Cobalt-Gold-Bismuth-Copper Project in Canada (" NICO Project "). The NICO Project is an advanced Critical Minerals development comprised of a planned mine and concentrator in the Northwest Territories (" NWT ") and a hydrometallurgical recovery plant in Lamont County, Alberta (" Hydrometallurgical Facility ") where concentrates from the mine, and other feed sources, will be processed to value-added products for the energy transition and new technologies. Worley has also been retained to assist with permitting for the Hydrometallurgical Facility, which is planned to be constructed at a brownfield site held under a purchase option arrangement from JFSL Field Services LLC (" JFSL ") (see news release dated, August 19, 2024). Development of the vertically integrated NICO Project would provide a reliable North American supply of cobalt sulphate, gold doré, bismuth ingots, and copper cement produced with supply chain transparency, Canadian Environmental-Social-Governance (" ESG" ) standards, and compliance with the U.S. Inflation Reduction Act (" IRA ").
Fortune was recently awarded ~C$17 million of non-dilutive grants and contribution funding from the U.S. Department of Defense (" DoD "), Natural Resources Canada (" NRCan ") and Alberta Innovates to help finance the work needed to advance the NICO Project to a project finance and construction decision (see news releases dated, May 16, 2024, and December 5, 2023). The funds are supporting metallurgical test work at SGS Canada Inc. (" SGS ") to validate recent process optimizations and flow sheet modifications, update the Feasibility and Front-End Engineering and Design studies for the planned development, permit the Hydrometallurgical Facility, and secure the remaining authorizations, management plans, and satisfy the environmental assessment measures and water license conditions required to construct and operate the NICO mine and concentrator.
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The NICO Project was assessed in a positive Feasibility Study in 2014 by Micon International Limited (" Micon ") but is now out of date. Micon, and P&E Mining Consultants Inc. (" P&E ") who also contributed to the 2014 study, will assist Worley with preparation of the NI 43-101 Technical Report, and the updated Mineral Reserve estimates and Mine Plan for the new Feasibility Study, respectively. Worley's discipline experts have reviewed historical technical data for the NICO Project and have visited the NWT and Alberta sites. The updated Feasibility Study will assess the NICO Project economics at current costs, commodity prices, and currency exchange rates, while also incorporating recent improvements and project optimizations that include:
- Completion of the Tlicho Highway in the NWT, eliminating capital cost redundancies and reducing the construction schedule for the mine and concentrator;
- Incorporation of the new brownfield Alberta site for the Hydrometallurgical Facility and re-purposing of the 42,000 square feet of serviced buildings on 77 acres of lands adjacent to the Canadian National Railway;
- Proximity of the Hydrometallurgical Facility site to services and reagents available in Alberta's Industrial Heartland, such as process and potable water, natural gas, low-cost power, sulphuric acid, oxygen, lime, and a commutable pool of skilled engineers and chemical plant workers;
- Enhanced transportation logistics and reduced concentrate haulage distances between the NWT and Alberta sites;
- A new waste residue disposal strategy for the Hydrometallurgical Facility, including potential sequential precipitation of a saleable gypsum by-product to reduce process residue transportation and disposal costs;
- Incorporation of recent process optimizations to reduce capital and operating costs and assessing the potential for improved metallurgical recoveries from the test work programs in progress at SGS;
- A new Resource Model with more constrained wireframe boundaries to reduce internal and external modelling dilution and providing better differentiation of higher-grade Mineral Resource blocks for earlier processing;
- A new Mine Plan focused on earlier mining and processing of higher margin ores to accelerate cash flows, together with a stockpiling strategy to defer processing lower margin ores;
- Sensitivity analyses for processing other feed sources in the Hydrometallurgical Facility, including intermediate products from the Kennecott Smelter waste streams pursuant to the process collaboration between Fortune and Rio Tinto.
About the NICO Project
The NICO Project is a vertically integrated Critical Minerals asset that Fortune has expended more than C$138 million to advance from an in-house mineral discovery to a near shovel-ready development. The economics for the project were previously assessed in a positive Feasibility Study, and the Company has secured environmental assessment approval and the major mine permits for the facilities in the NWT.
The NICO Deposit is situated in Tlicho Territory, approximately 160 km northwest of the City of Yellowknife and 50 km north of the community of Whati where the new Tlicho Highway currently terminates. The deposit contains open pit and underground Proven and Probable Mineral Reserves totaling 33.1 million tonnes containing 1.11 million ounces of gold, 82.3 million pounds of cobalt, 102.1 million pounds of bismuth, and 27.2 million pounds of copper that are sufficient to support an approximate 20-year mine life. NICO and the Company's nearby Sue-Dianne copper deposit are IOCG-type mineral deposits with world class global analogues, including the ‘super giant' Olympic Dam Deposit in South Australia. IOCG-type deposits are typically very large copper-gold deposits but are notably also enriched in important technology metals.
The NICO Deposit is planned to be mined primarily by conventional truck and shovel open pit methods with a low waste to ore strip ratio. A portion of the higher-grade Mineral Reserves are planned to be mined by underground open stoping methods to accelerate cash flows during early years of the mine life using the existing ramp and underground workings from previous test mining for access and ore haulage.
Ores from the mine will be processed by crushing, grinding and bulk flotation methods with a low (~4%) mass pull that reduces 4,650 tonnes of daily mill throughput to approximately 180 tonnes of bulk concentrate containing the recoverable metals. The bulk concentrate will be subjected to re-grinding and secondary flotation to produce gold-bearing cobalt and bismuth concentrates for low-cost transportation by truck and rail to Alberta and downstream processing to value-added products.
The Hydrometallurgical Facility is planned to be constructed in Lamont County in Alberta's Industrial Heartland, approximately 30 km north of Edmonton, where the municipal planning approvals are already in place for heavy industry. The cobalt concentrate will be processed in an autoclave using pressure-oxidation to dissolve the metals, followed by sequential neutralization, copper cementation, and solvent extraction purification and crystallization of cobalt sulphate heptahydrate. The bismuth concentrate will be processed by ferric chloride leaching, followed by cementation, and smelting to pour pure ingots. Gold will be recovered by leaching the autoclave residue, followed by carbon elution and smelting to doré bars. Test work is underway at SGS to determine if a saleable gypsum by-product can also be produced during sequential neutralization of the autoclave effluent to increase revenues and reduce the amount of waste that would need to be trucked to an offsite disposal facility.
NICO Commodities
NICO is a polymetallic deposit containing three Critical Minerals (cobalt, bismuth and copper) and more than one million ounces of in-situ gold as a highly liquid and countercyclical co-product to mitigate Critical Mineral price volatility.
Cobalt is a particularly important Critical Mineral due to its expanding consumption in the cathodes of lithium-ion rechargeable batteries used in electric vehicles, portable electronics and stationary storage cells. Cobalt is also used in aerospace superalloys, cutting tools, magnets, catalysts and pigments. There are concerns with the current sources of supply for cobalt because of the geographic concentration of mine production in the politically unstable and ESG-challenged Democratic Republic of the Congo (77% of mine supply) and geopolitical risks associated with China's ownership of most of these mines, 80% of the world's refinery production, and 90% of cobalt chemical supply.
Bismuth is another Critical Mineral with a supply chain controlled by China (~80% of the world production). Bismuth has unique physical and chemical properties leveraged to make automotive glass and steel coatings, paints and pigments, and brake pads. It is also used in low melting temperature and dimensionally stable alloys, fire depressants, and pharmaceuticals. Bismuth consumption is increasing as an environmentally safe and non-toxic replacement for lead in brass, solders, free machining steel and aluminum, galvanizing alloys, glass, ceramic glazes, radiation shielding, ammunition, and fishing weights. Bismuth-tin alloy is used to make environmentally safe plugs to properly seal decommissioned oil and gas wells to prevent greenhouse gas leakage, blowouts and groundwater contamination. Manganese-bismuth magnets are also being commercialized as a potential replacement for Rare Earth Elements in the magnets used in electric vehicle powertrain motors.
Fortune will be pleased to provide periodic updates on the progress of its various metallurgical, engineering and permitting programs.
For more detailed information about the NICO Mineral Reserves and certain technical information in this news release, please refer to the Technical Report on the NICO Project, entitled "Technical Report on the Feasibility Study for the NICO-Gold-Cobalt-Bismuth-Copper Project, Northwest Territories, Canada", dated April 2, 2014 and prepared by Micon International Limited which has been filed on SEDAR and is available under the Company's profile at www.sedar.com .
The disclosure of scientific and technical information contained in this news release have been approved by Robin Goad, M.Sc., P.Geo., President and Chief Executive Officer of Fortune and Alex Mezei, M.Sc., P.Eng. Fortune's Chief Metallurgist, who are "Qualified Persons" under National Instrument 43-101.
About Worley Group
Worley is an international engineering, construction management and environmental services company listed for trading on the Australian Stock Exchange.
About Fortune Minerals:
Fortune is a Canadian mining company focused on developing the NICO Cobalt-Gold-Bismuth-Copper Project in the NWT and Alberta. Fortune also owns the satellite Sue-Dianne Copper-Silver-Gold Deposit located 25 km north of the NICO Deposit and a potential future source of incremental mill feed to extend the life of the NICO concentrator.
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This press release contains forward-looking information and forward-looking statements within the meaning of applicable securities legislation. This forward-looking information includes statements with respect to, among other things, the exercise of the option by the Company and the purchase of the JFSL site, the construction of the proposed Hydrometallurgical Facility at the JFSL site, the potential for expansion of the NICO Deposit and the Company's plans to develop the NICO Project. Forward-looking information is based on the opinions and estimates of management as well as certain assumptions at the date the information is given (including, in respect of the forward-looking information contained in this press release, assumptions regarding: the successful completion of the Company's due diligence investigations on the JFSL site, the Company's ability to secure the necessary financing to fund the exercise of the option and complete the purchase of the JFSL site, the Company's ability to complete construction of a NICO Project Hydrometallurgical Facility; the Company's ability to arrange the necessary financing to continue operations and develop the NICO Project; the receipt of all necessary regulatory approvals for the construction and operation of the NICO Project and the related Hydrometallurgical Facility and the timing thereof; growth in the demand for cobalt; the time required to construct the NICO Project; and the economic environment in which the Company will operate in the future, including the price of gold, cobalt and other by-product metals, anticipated costs and the volumes of metals to be produced at the NICO Project). However, such forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. These factors include the risks that the 2021 drill program may not result in a meaningful expansion of the NICO Deposit, the Company may not be able to complete the purchase of the JFSL site and secure a site for the construction of a Hydrometallurgical Facility, the Company may not be able to finance and develop NICO on favourable terms or at all, uncertainties with respect to the receipt or timing of required permits, approvals and agreements for the development of the NICO Project, including the related Hydrometallurgical Facility, the construction of the NICO Project may take longer than anticipated, the Company may not be able to secure offtake agreements for the metals to be produced at the NICO Project, the Sue-Dianne Property may not be developed to the point where it can provide mill feed to the NICO Project, the inherent risks involved in the exploration and development of mineral properties and in the mining industry in general, the market for products that use cobalt or bismuth may not grow to the extent anticipated, the future supply of cobalt and bismuth may not be as limited as anticipated, the risk of decreases in the market prices of cobalt, bismuth and other metals to be produced by the NICO Project, discrepancies between actual and estimated Mineral Resources or between actual and estimated metallurgical recoveries, uncertainties associated with estimating Mineral Resources and Reserves and the risk that even if such Mineral Resources prove accurate the risk that such Mineral Resources may not be converted into Mineral Reserves once economic conditions are applied, the Company's production of cobalt, bismuth and other metals may be less than anticipated and other operational and development risks, market risks and regulatory risks. Readers are cautioned to not place undue reliance on forward-looking information because it is possible that predictions, forecasts, projections and other forms of forward-looking information will not be achieved by the Company. The forward-looking information contained herein is made as of the date hereof and the Company assumes no responsibility to update or revise it to reflect new events or circumstances, except as required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241007214068/en/
For further information please contact:
Fortune Minerals Limited
Troy Nazarewicz
Investor Relations Manager
info@fortuneminerals.com
Tel: (519) 858-8188
www.fortuneminerals.com
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Fortune Minerals Completes New Option Agreement to Acquire the JFSL Alberta Refinery Site for the NICO Project
Alex Mezei retained as Chief Metallurgist to supervise test work and process engineering
Fortune Minerals Limited (TSX: FT) (OTCQB: FTMDF) (" Fortune " or the " Company ") ( www.fortuneminerals.com ) is pleased to announce that it has entered into a new option agreement with JFSL Field Services ULC (" JFSL ") to purchase the brownfield industrial site in Lamont County, Alberta where it plans to construct its hydrometallurgical refinery (" Alberta Refinery "). The Alberta Refinery would process metal concentrates from Fortune's planned NICO cobalt-gold-bismuth-copper mine and concentrator in the Northwest Territories (" NWT ") (collectively, the " NICO Project ") and provide a reliable domestic supply of Critical Minerals for the energy transition and other new technologies. The Alberta Refinery will produce cobalt sulphate for the North American lithium-ion battery industry, bismuth ingots (12% of global reserves) and copper cement - with more than one million ounces of in-situ gold as a countercyclical and highly liquid co-product. Fortune also has a process collaboration with Rio Tinto examining the feasibility of processing materials produced from Kennecott Smelter wastes in Utah at the Alberta Refinery to increase cobalt and bismuth production.
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Pursuant to the new option agreement, Fortune can acquire the Lamont County site from JFSL for C$6,000,000 prior to the end of November 2025, provided it makes monthly option payments of C$100,000. The monthly option payments and the C$1,437,500 previously paid by Fortune to JFSL, are deductible from the purchase price. JFSL will be entitled to list the Lamont County property for sale during the option period, subject to Fortune's 90-day right of first refusal to match any third-party offer. JFSL will also be entitled to continue using the Lamont County property and facilities for the eighteen months following a sale to Fortune.
JFSL is a subsidiary of Worley Group (" Worley "), an international engineering, construction management and environmental services company listed for trading on the Australian Stock Exchange. Worley will be the preferred contractor for environmental, engineering, procurement, fabrication and construction work for the Alberta Refinery.
The JFSL site is comprised of 76.78 acres of lands adjacent to the Canadian National Railway in Alberta's Industrial Heartland, an association of five municipalities northeast of Edmonton with planning approvals and tax incentives designed to attract heavy industry. The JFSL site is a former steel fabrication plant with more than 42,000 square feet of serviced shops and buildings situated near the services, sources of reagents, and commutable skilled worker pool already in place for the Alberta petrochemicals industry. These are expected to materially reduce capital and operating costs for the Alberta Refinery during construction and operations.
Fortune is also pleased to announce that Alex Mezei, M.Sc. P.Eng., has joined the Company as Chief Metallurgist. Mr Mezei will supervise the test work and process and design engineering for the NICO Project, which the Company is advancing with the recently announced government contribution funding totalling approximately C$17 million (see news releases dated May 16, 2024 and December 5, 2023). Mr. Mezei is a Chemical Engineer with a more than forty years of diverse experience in international process engineering, test and pilot work, and economic assessments for a broad range of commodities around the world. This includes 22 years at SGS Mineral Services (" SGS ") in Lakefield, Ontario where he was Director, Engineering Technology Services, Metallurgical Operations, and Senior Metallurgist and notably, where he supervised the hydrometallurgical work for the NICO Project. Prior to SGS, Alex worked for Asea Brown Boveri as an instrumentation engineer, as a process research scientist at the Institute for Technological Engineering for Inorganic Chemistry and Nonferrous Metals in Romania, and as a production engineer at the Phoenix Metallurgical-Chemical Plant in Baia-Mare, Romania. Since retiring from SGS in 2016, Alex has worked as an Independent Consulting Metallurgist and Director of Metallurgy for Planetary Technologies.
For more detailed information about the NICO Mineral Reserves and certain technical information in this news release, please refer to the Technical Report on the NICO Project, entitled "Technical Report on the Feasibility Study for the NICO-Gold-Cobalt-Bismuth-Copper Project, Northwest Territories, Canada", dated April 2, 2014 and prepared by Micon International Limited which has been filed on SEDAR and is available under the Company's profile at www.sedar.com .
The disclosure of scientific and technical information contained in this news release has been approved by Robin Goad, M.Sc., P.Geo., President and Chief Executive Officer of Fortune, who is a "Qualified Person" under National Instrument 43-101.
About Fortune Minerals:
Fortune is a Canadian mining company focused on developing the NICO Cobalt-Gold-Bismuth-Copper Project in the NWT and Alberta. Fortune also owns the satellite Sue-Dianne Copper-Silver-Gold Deposit located 25 km north of the NICO Deposit and is a potential future source of incremental mill feed to extend the life of the NICO mill and concentrator.
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This press release contains forward-looking information and forward-looking statements within the meaning of applicable securities legislation. This forward-looking information includes statements with respect to, among other things, the exercise of the option by the Company and the purchase of the JFSL site, the construction of the proposed hydrometallurgical refinery at the JFSL site, the potential for expansion of the NICO Deposit and the Company's plans to develop the NICO Project. Forward-looking information is based on the opinions and estimates of management as well as certain assumptions at the date the information is given (including, in respect of the forward-looking information contained in this press release, assumptions regarding: the successful completion of the Company's due diligence investigations on the JFSL site, the Company's ability to secure the necessary financing to fund the exercise of the option and complete the purchase of the JFSL site, the Company's ability to complete construction of a NICO Project refinery; the Company's ability to arrange the necessary financing to continue operations and develop the NICO Project; the receipt of all necessary regulatory approvals for the construction and operation of the NICO Project and the related hydrometallurgical refinery and the timing thereof; growth in the demand for cobalt; the time required to construct the NICO Project; and the economic environment in which the Company will operate in the future, including the price of gold, cobalt and other by-product metals, anticipated costs and the volumes of metals to be produced at the NICO Project). However, such forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. These factors include the risks that the 2021 drill program may not result in a meaningful expansion of the NICO Deposit, the Company may not be able to complete the purchase of the JFSL site and secure a site for the construction of a refinery, the Company may not be able to finance and develop NICO on favourable terms or at all, uncertainties with respect to the receipt or timing of required permits, approvals and agreements for the development of the NICO Project, including the related hydrometallurgical refinery, the construction of the NICO Project may take longer than anticipated, the Company may not be able to secure offtake agreements for the metals to be produced at the NICO Project, the Sue-Dianne Property may not be developed to the point where it can provide mill feed to the NICO Project, the inherent risks involved in the exploration and development of mineral properties and in the mining industry in general, the market for products that use cobalt or bismuth may not grow to the extent anticipated, the future supply of cobalt and bismuth may not be as limited as anticipated, the risk of decreases in the market prices of cobalt, bismuth and other metals to be produced by the NICO Project, discrepancies between actual and estimated Mineral Resources or between actual and estimated metallurgical recoveries, uncertainties associated with estimating Mineral Resources and Reserves and the risk that even if such Mineral Resources prove accurate the risk that such Mineral Resources may not be converted into Mineral Reserves once economic conditions are applied, the Company's production of cobalt, bismuth and other metals may be less than anticipated and other operational and development risks, market risks and regulatory risks. Readers are cautioned to not place undue reliance on forward-looking information because it is possible that predictions, forecasts, projections and other forms of forward-looking information will not be achieved by the Company. The forward-looking information contained herein is made as of the date hereof and the Company assumes no responsibility to update or revise it to reflect new events or circumstances, except as required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240819194865/en/
For further information please contact:
Fortune Minerals Limited
Troy Nazarewicz
Investor Relations Manager
info@fortuneminerals.com
Tel: (519) 858-8188
www.fortuneminerals.com
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Alberta Refinery Site Option for NICO Project Has Expired
Fortune and JFSL remain interested in concluding a transaction under a new arrangement
Fortune Minerals Limited (TSX: FT) (OTCQB: FTMDF) (" Fortune " or the " Company ") ( www.fortuneminerals.com ) announces that the option to purchase the JFSL Field Services ULC (" JFSL ") brownfield industrial site in Lamont County, Alberta could not be completed before the expiry of the option on June 30, 2024. Both, Fortune and JFSL remain willing and able to complete a different transaction that would enable the Company to complete the purchase under a new arrangement as soon as possible. Fortune will provide an update on this plan when its discussions with JFSL have been concluded.
About Fortune Minerals:
Fortune is a Canadian mining company focused on developing the NICO cobalt-gold-bismuth-copper critical minerals project in the NWT and Alberta. Fortune also owns the satellite Sue-Dianne copper-silver-gold deposit located 25 km north of the NICO Deposit and is a potential future source of incremental mill feed to extend the life of the NICO mill and concentrator.
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@FortuneMineral on Twitter.
This press release contains forward-looking information and forward-looking statements within the meaning of applicable securities legislation. This forward-looking information includes statements with respect to, among other things, the Company and JFSL's discussions and future plans including any further arrangements. Forward-looking information is based on the opinions and estimates of management as well as certain assumptions at the date the information is given (including, in respect of the forward-looking information contained in this press release, assumptions regarding: the successful negotiations and agreement between the Company and JFSL and the economic environment in which the Company will operate in the future, including the price of gold, cobalt and other by-product metals, anticipated costs and the volumes of metals to be produced at the NICO Project). However, such forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. These factors include the risks that global geopolitical situations may interfere with the Company's ability to successfully negotiate with JFSL, the inherent risks involved in the exploration and development of mineral properties and in the mining industry in general, the market for products that use cobalt or bismuth may not grow to the extent anticipated, the future supply of cobalt and bismuth may not be as limited as anticipated, the risk of decreases in the market prices of cobalt, bismuth and other metals to be produced by the NICO Project, discrepancies between actual and estimated Mineral Resources or between actual and estimated metallurgical recoveries, uncertainties associated with estimating Mineral Resources and Reserves and the risk that even if such Mineral Resources prove accurate the risk that such Mineral Resources may not be converted into Mineral Reserves once economic conditions are applied, the Company's production of cobalt, bismuth and other metals may be less than anticipated and other operational and development risks, market risks and regulatory risks. Readers are cautioned to not place undue reliance on forward-looking information because it is possible that predictions, forecasts, projections and other forms of forward-looking information will not be achieved by the Company. The forward-looking information contained herein is made as of the date hereof and the Company assumes no responsibility to update or revise it to reflect new events or circumstances, except as required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240701842400/en/
Fortune Minerals Limited
Troy Nazarewicz
Investor Relations Manager
info@fortuneminerals.com
Tel: (519) 858-8188
www.fortuneminerals.com
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Sherritt Corrects Misleading Information Regarding its Junior Notes
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Sherritt International Corporation ("Sherritt" or the "Corporation") (TSX:S) today issued the following statement in response to misleading information that has come to its attention in connection with its 10.75% unsecured PIK option notes due 2029 ("the Notes"). The Corporation reconfirms that it is not currently, nor has it ever been in breach of the Notes indenture and notes that all payment obligations thereunder have been settled in accordance with the terms of the Notes indenture.
The Corporation cautions holders of the Notes on the misleading information and reminds all stakeholders to rely on information provided through Sherritt's official communications channels, including its public filings and corporate website.
About Sherritt
Sherritt is a world leader in using hydrometallurgical processes to mine and refine nickel and cobalt – metals deemed critical for the energy transition. Sherritt's Moa JV has an estimated mine life of approximately 25 years and is advancing an expansion program focused on increasing annual MSP production by 20% of contained nickel and cobalt. The Corporation's Power division, through its ownership in Energas S.A. ("Energas"), is the largest independent energy producer in Cuba with installed electrical generating capacity of 506 MW, representing approximately 10% of the national electrical generating capacity in Cuba. The Energas facilities are comprised of two combined cycle plants that produce low-cost electricity from one of the lowest carbon emitting sources of power in Cuba. Sherritt's common shares are listed on the Toronto Stock Exchange under the symbol "S".
View source version on businesswire.com: https://www.businesswire.com/news/home/20250213467531/en/
For further information, please contact:
Tom Halton
Director, Investor Relations and Corporate Affairs
Email: investor@sherritt.com
Telephone: (416) 935-2451
www.sherritt.com
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Cobalt Investor Report
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Cobalt Market Forecast and Cobalt Stocks to Buy in 2025
Table of Contents
Cobalt Market 2024 Year-End Review
Cobalt Market 2024 Year-End Review
Cobalt prices started 2024 trading at the US$29,151.50 per metric ton (MT) level, the highest price point the battery metal achieved for the year. By December, it had contracted by 16.68 percent to US$24,287.90.
Prices remained under pressure due to oversupply, with the Democratic Republic of Congo (DRC) maintaining its dominant position as the world’s largest producer. Meanwhile, efforts to diversify supply chains and reduce reliance on the DRC gained momentum, with new projects and funding infusions announced in Canada and the US.
On the demand side, the rise of lower-cobalt battery chemistries weighed on consumption. Lithium-iron-phosphate (LFP) batteries continued gaining market share globally, pressuring cobalt’s role in the electric vehicle (EV) sector.
However, cobalt’s use in high-performance batteries for smartphones and other electronics remained resilient, offering a counterbalance to declines elsewhere. Geopolitics and policy added another layer of complexity, with China expanding its influence in African mining regions and western nations pursuing stricter supply chain transparency laws.
These dynamics are expected to shape cobalt’s role in the critical metals market into 2025 and beyond, as stakeholders grapple with the metal’s evolving importance in a decarbonized economy.
2024 cobalt supply and demand trends
Residual oversupply from 2023 prevented any price positivity in the cobalt market through 2024.
According to the US Geological Survey's annual cobalt report, mine supply of the battery metal ballooned in 2023, growing 16.75 percent year-on-year, from 197,000 MT in 2022 to 230,000 MT in 2023.
Over the last three years, annual mine supply has soared, from 142,000 MT to 230,000 MT, up 61 percent.
For 2023, 170,000 MT were mined in the DRC; the African nation is home to the five largest cobalt mines in the world. These high-grade areas have attracted the attention of Chinese mining companies, particularly China Molybdenum (SHA:603993,OTC Pink:CMCLF), which is one of the largest cobalt producers in the DRC and the world.
In recent years, cobalt-mining practices in the DRC have come under fire from international rights groups concerned that artisanal and small-scale cobalt-mining operations are using child labor.
In October 2024, the US Department of International Labor concluded a six year program entitled Combating Child Labor in the Democratic Republic of the Congo’s Cobalt Industry (COTECCO).
Its key achievements include supporting the creation of an inter-ministerial commission to monitor child labor, and setting up a provincial commission in Lualaba. Since its inception in 2018, the project has trained 458 stakeholders from the government, civil society and the private sector on fighting child labor. It has introduced tools like the Bureau of International Labor Affairs' Comply Chain to 28 mining entities in Lualaba and Haut-Katanga.
Additionally, COTECCO has collaborated with the DRC government to establish a Child Labor Monitoring and Remediation System (CLRMS), training 110 officials to operate it. By March 2024, the CLRMS database had registered 5,346 children, and was officially handed over to the mines ministry for sustained management.
Cobalt fundamentals tightly tied to EV sector
Combating child exploitation in the cobalt supply chain will be paramount moving forward, as demand from the EV sector alone is expected to increase substantially, rising by 60 to 70 percent by 2040.
The DRC is projected to play a vital role in supplying the 214,000 MT of cobalt demand expected by 2030.
“It’s hard to understate just how much demand will be added to the cobalt market by the EV industry,” said Roman Aubry, Benchmark Mineral Intelligence pricing analyst, in an April email.
“Already it has become the largest demand sector, and its dominance is only set to grow.”
In 2024, global EV sales reached a third consecutive record high, with China leading the surge. The China Association of Automobile Manufacturers reported a 5.3 percent increase in passenger vehicle sales, totaling 23.1 million units, with EVs and hybrids accounting for 47.2 percent of the market — a 40.7 percent rise from the previous year.
Elon Musk's Tesla (NASDAQ:TSLA), a dominant player in the EV sector, experienced a 1.1 percent decline in worldwide sales, delivering 1.79 million vehicles compared to 1.81 million in 2023.
This downturn was attributed to increased competition and market saturation.
However, other automakers reported significant growth. General Motors (NYSE:GM), for instance, achieved a 50 percent increase in its Q4 EV sales, driven by models like the Chevrolet Equinox EV SUV.
Analysts suggest that while Tesla's sales dip impacted overall market perceptions, the broader EV market remained robust, with traditional manufacturers gaining traction.
Another notable development in the EV sector in 2024 was the April announcement from Honda (NYSE:HMC) that it will invest C$15 billion to build a comprehensive EV value chain in Ontario, Canada.
The plans include an EV assembly plant and a standalone battery manufacturing facility. Joint ventures will add a cathode active material processing plant and a separator plant. The assembly plant aims to produce 240,000 vehicles annually, while the battery facility will have a capacity of 36 gigawatt hours.
Government funding supporting cobalt market growth
Due to its critical mineral designation, the cobalt sector has been the recipient of government funding.
In May, the US and Canada partnered for a co-investment to enhance the North American critical minerals supply chain. The collaboration will benefit Fortune Minerals (TSX:FT,OTCQB:FTMDF) and Lomiko Metals (TSXV:LMR,OTCQB:LMRMF), with the latter set to receive up to C$7.5 million from the Canadian government, matched by an additional US$6.4 million from the US Department of Defense’s Defense Production Act Investments Office.
The funding is part of the Canada-US Energy Transformation Task Force.
“Canada is positioning itself as a global leader in the supply of responsibly sourced critical minerals for the green and digital economy,” said Jonathan Wilkinson, Canada's minister of energy and natural resources.
“Through our work with the United States and other allies, we are developing secure critical minerals value chains that will power a prosperous and sustainable future," he added.
In August, Electra Battery Materials (TSXV:ELBM,NASDAQ:ELBM) secured a US$20 million grant from the US Department of Defense to aid in the construction and commissioning of “North America’s only cobalt sulfate refinery."
“Electra is committed to strengthening the resiliency of the North American battery supply chain,” said Electra CEO Trent Mell about the Ontario-based refinery. “We are grateful to the US Department of Defense for its support. On issues of national security, there are no borders between Canada and the United States. We are proud to partner with the US Government to build a strong North American supply chain for critical minerals.”
Cobalt catalysts to watch in 2025
Despite positive catalysts on the horizon, the cobalt market is facing immense pressure from substitution.
The shift toward LFP batteries, which omit cobalt, has drastically reduced demand in EV battery production.
By the third quarter of 2024, LFP batteries dominated 75.2 percent of the market, while nickel-manganese-cobalt batteries fell to 24.6 percent, according to data from S&P Global.
The declining role of cobalt in EV batteries was further highlighted in correspondence between China's CMOC (OTC Pink:CMCLF,SHA:603993), the world’s largest cobalt-mining company, and Bloomberg in late 2024.
“We predict that EV batteries will never return to the era that relies on cobalt,” said Zhou Xing, a spokesperson for CMOC. “Cobalt is far less important than imagined.”
However, even though cobalt's future in EVs looks clouded, demand persists in the consumer electronics segment, which relies on lithium-cobalt-oxide batteries, and in superalloys for aerospace and military applications.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Fortune Minerals is a client of the Investing News Network. This article is not paid-for content.
The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Cobalt Market Forecast: Top Trends for Cobalt in 2025
Oversupply and shifting battery chemistries are set to define the cobalt market in 2025. Prices — subdued by excess supply since 2023 — are expected to remain stable, with limited volatility.
The rise of lithium-iron-phosphate (LFP) batteries, particularly in China, continues to suppress demand for cobalt chemicals, challenging sulfate refiners. Meanwhile, on the supply side, Indonesia's rapid expansion in mixed hydroxide precipitate (MHP) production offers an alternative to the contentious Democratic Republic of Congo (DRC).
Even so, the DRC is expected to remain the primary producer of cobalt in the near to medium term.
“Oversupply has been the dominant driving force for cobalt prices since 2023, and this is likely to persist in 2025,” Roman Aubry, price analyst at Benchmark Mineral Intelligence, said. “As this single factor is so overwhelming, it has stifled much of the volatility in the market in 2024, and it is likely this will be the case in 2025 as well.”
Cobalt demand projected to rise long term
Critical minerals have become a key focus as nations look to fortify domestic supply chains. The cobalt sector’s production concentration in the DRC makes it even more prone to geopolitical upheaval.
According to the International Energy Agency’s (IEA) 2024 Global Critical Minerals Outlook, the cobalt market has a heightened geopolitical risk rating because 84 percent of production is focused in a single country.
Despite the current cobalt glut, the IEA is projecting that demand will soar from 213,000 metric tons in 2023, rising to 344,000 metric tons in 2030 and then to 454,000 metric tons in 2040.
This steep uptick has prompted the IEA to project a potential 16 percent shortfall by 2035.
Although countries like Indonesia and Australia are starting to see cobalt sector growth, experts agree that the DRC will continue to be the dominant player in the industry into the future.
“The DRC is going to maintain its position for the foreseeable future; however, Indonesian MHP is rapidly growing as an alternative source of cobalt in the market. In line with this, we’ve seen an influx of cobalt metal from Indonesia becoming more prevalent in recent months, being aggressively marketed by Indonesian producers,” said Aubry.
Those circumstances mean Indonesia could capture a larger piece of market share this year.
“With CMOC (OTC Pink:CMCLF,SHA:603993) not planning any new expansions this year, it is unlikely we'll see any significant growth from the DRC in cobalt production in 2025,” he added.
Refinement capacity will also play an important role in meeting growing cobalt demand.
Australia’s Cobalt Blue Holdings (ASX:COB,OTC Pink:CBBHF) is advancing plans for the Kwinana cobalt refinery near Perth, proposing an initial production capacity of 3,000 metric tons of cobalt sulfate and 500 metric tons of nickel metal annually. Construction is slated to commence in H1 2025, with completion expected within 12 months.
Changing battery chemistries threaten cobalt demand
In 2024, record-breaking global electric vehicle (EV) sales helped solidify cobalt's role in the energy transition. China is spearheading a 40.7 percent surge in EV and hybrid adoption, supported by aggressive pricing and subsidies.
China remained the largest growth market as domestic automakers outpaced foreign rivals. European sales rebounded from setbacks early in the year, with stricter emissions penalties set to drive further adoption in 2025.
Despite US market uncertainties, growing EV demand globally will sustain cobalt's importance, although supply chain challenges and alternative battery technologies may influence its trajectory.
“As LFP becomes increasingly dominant in China, sentiment for cobalt chemicals used in batteries has turned more bearish,” Aubry said. “A downturn in demand may put sulfate refiners under additional pressure, particularly at a time where the current market dynamics already present significant challenges due to prices.”
Rising copper, nickel production boosts cobalt glut
Another factor that could lead to additional cobalt surpluses is the production correlation with copper and nickel.
A November 2024 Fastmarkets report notes that 76 percent of global cobalt supply comes from copper-cobalt mines in the DRC. This by-product status exposes cobalt to market dynamics in the copper space.
In 2024, copper production in the region was on the rise, which in turn weighed on the cobalt market.
“But with cobalt demand remaining decidedly sluggish, copper’s upward trajectory will continue to fuel cobalt oversupply and, combined with the fact that copper production is poised to expand further, this will keep cobalt prices under pressure,” the Fastmarkets report reads.
A similar picture is playing out in Indonesia, where cobalt is mined as a by-product of nickel.
Indonesia’s rise as a cobalt powerhouse is poised to reshape the market, fueled by its booming MHP production. In 2024, the country supplied 10 percent of global cobalt, up from 7 percent in 2023, driven by Chinese-backed investments in nickel laterite ore projects using high-pressure acid leach technology.
Despite weak nickel prices, these projects are ensuring long-term cobalt output growth, with MHP-derived cobalt production projected to rise by a sizeable 17 percent in 2025.
Producers are increasingly favoring cobalt metal over sulfate due to higher profitability and easier storage.
Additionally, cobalt from Indonesia may be immune to US tariffs — that's in contrast to Chinese cobalt, which faces a 25 percent import tariff, as per Fastmarkets. “That possibility could raise concerns about shifting global supply dynamics and increase the pressure on cobalt prices," the firm explains.
Due to these factors, Fastmarkets is expecting a continued surplus of 21,000 metric tons in 2025, a slight decrease from 2024’s glut of 25,000 metric tons. Increased copper and nickel production is driving this trend, but challenges loom.
Weak nickel pricing, driven by Indonesia’s rapid growth, is squeezing producers in higher-cost regions like Australia and Canada, threatening project viability. Meanwhile, geopolitical tensions, trade barriers and a strong US dollar could further disrupt cobalt flows, especially from Chinese-backed Indonesian operations. The market’s trajectory will depend heavily on economic conditions, trade dynamics and evolving technologies, the report concludes.
Ethical supply concerns continue
As the global mining sector faces increased scrutiny for its extraction practices, the DRC’s cobalt industry has proven to be a focal point for sustainability and social governance concerns.
Child labor at artisanal and small-scale cobalt mines in the country has drawn international attention, prompting the US Department of International Labor to establish a program to fight cobalt-related child labor in the DRC.
Since its inception in 2018, the project has trained 458 stakeholders from the government, civil society and the private sector on fighting child labor. Its other accomplishments include introducing tools like the Bureau of International Labor Affairs' Comply Chain to 28 mining entities in Lualaba and Haut-Katanga.
While these are moves in the right direction, the long-running negative attention that the DRC’s cobalt sector has faced could be a deterrent to new capital entering the country.
“Alternatives to the DRC are likely to become more attractive to investors if it can sidestep other potential pitfalls, such as high refining energy costs. Until a more sustainable supply chain is embedded, or there are more substantial regulations implemented to limit the prevalence of artisanal mining, prices are unlikely to see a premium for sustainably sourced cobalt in the immediate term,” Aubry told the Investing News Network.
Trump’s tough tariff talk
Although Indonesian supply may be exempt from current US trade rules, that could change in the near term.
The re-election of US President Donald Trump has introduced significant uncertainty into the cobalt market, particularly concerning the future of electric vehicle (EV) policies and potential trade measures.
Industry participants have expressed concerns that Trump may reverse existing EV legislation, notably the Inflation Reduction Act, which has been instrumental in channeling approximately US$312 billion into US EV production and infrastructure. The American president has previously indicated intentions to "end the electric vehicle mandate on day one" in a bid to "save the auto industry from complete obliteration."
Despite these statements, the proliferation of EV manufacturing facilities in predominantly Republican states suggests that any policy reversals could face resistance due to the economic benefits they bring to local communities.
Stricter tariffs on Chinese-origin cobalt and EVs is also a concern among market watchers.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Fortune Minerals and Mawson Finland are clients of the Investing News Network. This article is not paid-for content.
The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Top 3 Canadian Cobalt Stocks
The first months of 2024 saw cobalt take a bearish stance, constrained by excess supply and eroding demand.
Cobalt prices faced many headwinds at the beginning of the year, and they pulled the value of the battery metal down by 2.01 percent between January and the end of March. After starting the calendar year at US$29,134 per metric ton (MT), cobalt metal prices had fallen to US$28,548 by the end of the three month session.
The sluggish market conditions were attributed to reduced demand from the battery sector and oversupply of material. As a result, prices remained under pressure, with limited signs of improvement expected in the near term.
“Electric vehicle and electronic batteries still comprise a large portion of cobalt demand, although the power battery production landscape in China encountered challenges in the past year,” a January report from S&P Global Commodity Insights states. “A notable decline in growth rates, particularly in the production of batteries with a nickel-manganese-cobalt chemistry, has led market sources to hold a cautiously optimistic outlook for Q1.”
Concerns over the economic impact of the Russia-Ukraine conflict have also added to the market uncertainty.
The first 30 days of Q2 haven’t offered relief to the cobalt market, with prices falling below US$28,000 in mid-April.
These tough market conditions were reflected in the performance of the sector’s exploration and mining companies. However, despite the challenges, three companies have been able to make gains in the current market.
Below is a look at the three top cobalt stocks on the TSX and TSXV by share price performance so far this year. All year-to-date and share price information was obtained on May 1, 2024, using TradingView’s stock screener, and all companies listed had market caps above C$10 million at that time. Read on to learn more about their activities.
1. Electra Battery Materials (TSXV:ELBM)
Year-to-date gain: 15.38 percent; market cap: C$32.94 million; current share price: C$0.60
Canada-based exploration and development company Electra states it is actively involved in processing low-carbon, ethically sourced battery materials. The company is working to develop North America's sole cobalt sulfate refinery while operating a black mass recycling demonstration plant. Black mass is obtained from end-of-life lithium-ion batteries.
Electra is also progressing exploration efforts at its Iron Creek cobalt and copper project in the Idaho Cobalt Belt, and expanding its cobalt sulfate processing capabilities in Bécancour, Québec.
In early February, Electra released an update on its black mass demonstration plant near Toronto. The overview notes that recent optimizations have enhanced the recovery of lithium, nickel, cobalt and other essential minerals, improving the quality of saleable end products. Further optimization studies will include metal recovery from internal recycling streams, and Electra said preliminary lab results suggest positive prospects for isolating cobalt from nickel in the leach liquor.
On February 9, the company received a C$5 million investment from the Canadian government for the construction of its cobalt sulfate refinery. The refinery, which will be situated in Temiskaming Shores, Ontario, aims to supply roughly 5 percent of the world's battery-grade cobalt essential for electric vehicles. The C$5 million grant is being dispersed through the Federal Economic Development Initiative for Northern Ontario.
“Canada has surpassed China as the top jurisdiction in the global battery supply chain, given its strength in raw materials mining and processing,” Trent Mell, Electra’s CEO, said. “Today’s investment from the Government of Canada means that Northern Ontario will seize the economic opportunities created by Canada’s transition to a green economy.”
Shares of Electra reached a year-to-date high of C$0.97 on February 15.
2. FPX Nickel (TSXV:FPX)
Year-to-date gain: 6.67 percent; market cap: C$87.67 million; current share price: C$0.32
FPX Nickel is currently advancing its Decar nickel district in BC, Canada. The property comprises four key targets, with the Baptiste deposit being the primary focus, alongside the Van target.
FPX Nickel also has three other nickel projects in BC and one in the Yukon, Canada. While nickel extraction is its main focus, the company plans to produce cobalt as a by-product from future mining operations at the Baptiste site.
In mid-January, FPX secured a C$14.4 million strategic equity investment from Sumitomo Metal Mining Canada, a subsidiary of Japanese nickel miner Sumitomo Metal Mining (TSE:5713).
Martin Turenne, president and CEO of FPX, noted that Sumitomo's investment is a substantial validation of Baptiste, highlighting Sumitomo Metal Mining's expertise in nickel production and supply chain diversification.
Shortly after the Sumitomo news, FPX announced the “company’s three strategic investors have fully exercised their participation rights to re-establish their respective initial ownership interest in FPX’s issued and outstanding common shares.” The exercise resulted in the completion of an additional private placement, where a total of 8,981,971 common shares were issued to the strategic investors at C$0.48 each, generating C$4,311,346 in proceeds.
With approximately C$45 million on hand, including the proceeds, FPX expects to be fully funded for its 2024 and 2025 activities. Shares of FPX spiked following the news and reached a year-to-date high of C$0.40 on February 5.
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3. Sherritt International (TSX:S)
Year-to-date gain: 5 percent; market cap: C$123.16 million; current share price: C$0.31
Sherritt International is a leading global player in hydrometallurgical processes for nickel and cobalt extraction. At its Moa joint venture, located in Cuba, Sherritt is pursuing a 25 year expansion program to boost annual mixed sulfide precipitate output by 20 percent, equating to 6,500 MT of nickel and cobalt.
On January 15, Sherritt announced it was implementing organization-wide cost-cutting measures to enhance operations in response to market conditions. Part of these efforts included a corporate restructuring and a 10 percent reduction in Canadian staff. In February, the company released its 2023 results and 2024 guidance. In the report, Sherritt notes that total cobalt production on a 100 percent basis was 2,876 MT, “slightly below their annual guidance ranges.”
For 2024, the company is anticipating an uptick in nickel and cobalt production “due to increased feed of mixed sulphides from the Moa mine site to the refinery as a result of access to additional ore sources.”
Sherritt shares marked a year-to-date high on April 10 of C$0.36.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: FPX Nickel is a client of the Investing News Network. This article is not paid-for content.
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