Commentary and analysis on markets, personal finance, and wealth building from a contrarian perspective. "I believe in the discipline of mastering the best that other people have ever figured out. I don’t believe in just sitting there and trying to dream it up all yourself. Nobody’s that smart."
— Charlie Munger
The Company's flagship project, the 100% owned Idaho
Cobalt Project, (ICP) is comprised of the mine and mill site located in
Lemhi County, Idaho, near the town of Salmon,Idaho and the proposed refining
facility, the Cobalt Production Facility (CPF), a stand-alone
hydrometallurgical facility that will process the ICP Mine concentrates. The
Company owns a 16 acre industrial zoned package of land near Kellogg, Idaho
which is suitable for the future placement of the CPF. The Company is also
investigating other locations for the refining facility optimally located
closer to the mine site and a railhead to reduce the operating expenditures of
The ICP has received a final Environmental
Impact Statement and positive Records of Decision from both the U.S. Department
of Agriculture National Forest Service and the U.S. Environmental Protection
Agency. In addition, a Feasibility Study on the ICP was completed in 2008 which
allowed the Company to finance the initial construction of the project. The
Company has spent US$65.3 million and completed two phases of the ICP construction
program that commenced in June 2011 and completed in December 2012.
In light of improving financial markets and positive
developments in the cobalt sector, the Company announced in July 2014 that it
was pursuing several opportunities resulting from the significant increase in
the long term demand for cobalt used in rechargeable batteries required for
electric and hybrid electric vehicles where cobalt is one of the key
Now this company is a true penny stock that is nowhere near production of cobalt. However, as I said before this is a pure speculation on higher cobalt prices. The current cobalt price is around $10 per pound.
Cobalt price over the last year
However back in 2002 cobalt soared to over $50
The price of cobalt has been as high as $50 per pound back in 2008. So the speculation is that demand for cobalt will not be able to met and price spikes. This price spike will drive the unwashed masses to seek out any publicly traded cobalt miners. Formation Metals is only one of two publicly traded cobalt miners that I could find. Again this is a speculation and could very easily go to zero. Watch the cobalt price and if it begins to go up and articles appear about a shortage of cobalt then you can expect money to flow into this name.The price has spiked up recently and it will probably fall back in the near term. Anyone interested in this speculation would be wise to wait for lower prices.