Broken Hill global cobalt province., page-628

Here is a selected part of the SELL from Fat Tails Diggers and Drillers (which is an excellent value subscription with a very switched on, experienced and successful lead Geologist, James Cooper, heading up the research arm)

But the reason I mention it here is that wereceived several follow up questions related to our Diggers and Drillers positions.

...question ties in with our latestportfolio update:

‘CobaltBlue seams to lagging. Global cobalt prices have eased considerably. What doyou think the future is for COB?’

Good question, and I haven’t addressed Cobalt Blue Holdings [ASX:COB] for some time. The performance of this stock has been disappointing.

As Ross states, global cobalt prices have easedconsiderably. This has been on the back of strong production from the Kinshasaregion of the Democratic Republic of the Congo.

But strong supply has also been met withweakening demand, which has merged into the perfect storm for downward pressureon the cobalt market.

As you know, the tech sector had a majorslowdown in 2022. As an important consumer of the commodity, it added furtherpressure to prices.

But with tech undergoing a recovery ‘of sorts’,does this offer some hope for a COB bounce?

Perhaps.

....

Far from a change in trend, many tech stocksremain stuck in a long-term downtrend.

For that reason, I believe we need to pull thepin on our cobalt play.

Supply from the DRC remains at record highs.Demand could weaken further, should tech become ravished by another bout ofheavy selling.

That’s why I’m recommending:

Action totake: SELL Cobalt Blue Holdings [ASX:COB] at market.

It marks a disappointing end to this position.Long term, the fundamentals stack up for this company.

Cobalt holds enormous, concentrated risk in oneof the most unstable jurisdictions on the planet.

A supply shock for this commodity could come atANY moment.

But as investors, we can’t hold onto a lossindefinitely.

We’ve already held on to this position for toolong…a mistake I don’t intend to repeat.