You can Bank on this Cobalt play
Bankers Cobalt Corp. (TSXV: BANC) is having a great start since it creation back in October. They are an exploration-stage company focused on the development of Cobalt and copper properties in the Democratic Republic of Congo (DRC) where 65% of the world’s Cobalt is found.
The company is one of the only junior companies today conducting Canadian-style exploration and development in the DRC
Their Business plan is simple:
Here are 3 reasons why this company is special and investors are starting to clue in
1) – Project Ownership
The company owns 14 concessions (in Red below) covering 210 square kilometers, all strategically located and with clean titles. All of their projects are either 100% owned or private JV’s with reputable partners.
The company’s Kabolela Project is a 55% owned property that comprises 3.6 square kilometers, where Banker Cobalt has initiated a drill program.
BANC also has a 65% share in the Kankutu property, which comprises 10.3 square kilometers in the DRC. The company has plans for sampling pitting and geophysics to be run on the Kankutu property.
2) – Proven Team
Each individual member of the company’s management team has 20+ years of experience in corporate finance and M&A.
One of the directors, Shu Zhan, has experience in exploration geology in the DRC and 30+ years of experience in other parts of the world like Asia, Australia and parts of Africa.
Their technical advisory board includes Dave Frances who actually developed assets in the DRC with Mawson West between 2006 and 2012. Mawson West ended up raising capital on the TSX in 2010 with a market cap of $250 million.
This is a team that knows how to find and acquire proven projects, develop them and sell them to motivated buyers.
In the case of Bankers Cobalt, these buyers are predominantly Chinese due to the fact that China demands most of the world’s Cobalt.
3) – Demand for Cobalt
Demand for cobalt is increasing at a tremendous pace. As a result, prices for the metal has increased more than 145% from $14 USD to $34 USD per pound.
According to Reuters, the market for cobalt is estimated at 100,000 tonnes annually, of which almost 50% was used in batteries for electric cars, as well as products including mobile phones, laptops, digital cameras and cordless power tools.
Earlier this year, mining giant Glencore signed a major deal to sell up to 20,000 tonnes of cobalt products to a Chinese firm. Considering Glencore only produces 20,000 tonnes of cobalt currently, they will need to increase their cobalt output in the coming years thorough developing mines organically and acquisitions.
Moving forward, sales are expected to grow fast as governments around the world clamp down on polluting fossil fuels such as diesel and gasoline.
Fortune Favours the Bold
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