Monday, June 26, 2017

New Cobalt Investment vehicle Cobalt 27 (KBLT.V) on my watchlist

Cobalt 27 Capital Corp:

Cobalt 27 identified cobalt as a commodity with attractive supply-and-demand fundamentals driven by the rapidly growing electric vehicle and battery energy storage markets. The Company’s management team evaluated various opportunities to invest in cobalt and decided the most attractive structure would be to create a company with an asset base underpinned by physical cobalt material and enhanced with growth opportunities in the form of streams, royalties and direct interests in mineral properties containing cobalt. 

Cobalt 27’s strategy of holding physical cobalt, streams and royalties will avoid the operational, environmental, closure and capital risks associated with typical mining companies. Similarly, Cobalt 27 will not be exposed to any operational risks borne by the automakers and battery producers. By holding physical cobalt and cobalt streams and royalties, the Company will be able to participate in cobalt price appreciation while minimizing exposure to risks.

This company just IPO'd in the last couple of weeks. I am putting it on my watchlist as I have been looking for a vehicle to play the inevitable price spike that is coming in cobalt. I am intrigued by the fact that they are buying physical cobalt.

The company says that they will invest in royalties and streams but most of the cobalt is the by product of nickel and copper mining. It will be interesting to see how they will deploy their capital.

Cobalt price chart

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