GSR (ASX) Cobalt Promotion

Originally posted by deejaay ↑

Salmon, Idaho (where Formation Metals Cobalt deposit is located) is an 11 hour drive to the Tesla Gigafactory in Reno, Nevada. I believe this fact has contributed significantly to the deposit having a current valuation of $57M CAD. Tesla have said in the past that they will source all their raw materials from North America for the Gigafactory. Currently Tesla sources it's cobalt from the Phillipines from the Sumitomo Metal Mining Co owned smelter which is attached to the Coral Bay Nickel Corporation mine. It produces 750T of cobalt per year.

Obviously this isn't enough for 500,000 Model 3's per year by 2018 (which cobalt estimates are 7000T per 500,00 units) in fact Formation Metals <1400T per year isn't going to be enough either. USA Cobalt production is next to nothing however the USA the largest consumer of Cobalt.
Canada produces around 7,000T per year.... Tesla simply are not going to be able to demand 100% of Canada's Cobalt production. The reality is they have left it too late and will have to source their Cobalt from overseas for the foreseeable future... Their options are:
Current production:
1. Democratic Republic of the Congo (DRC)
Mine production: 56,000 MT
2. China
Mine production: 7,200 MT (Due to the fact it purchases concentrated Cobalt)
3. Canada
Mine production: 7,000 MT
4. Australia (not looking bad next to Cuba, Africa, Russia and Brazil!)
Mine production: 6,500 MT
5. Russia
Mine production: 6,300 MT
6. Cuba
Mine production: 4,200 MT
7. Philippines
Mine production: 3,700 MT
8. Zambia
Mine production: 3,100 MT
9. South Africa
Mine production: 3,000 MT
10. Brazil
Mine production: 3,000 MT

Regardless of what Tesla will do I believe we have an Electric Car revolution unfolding here. Tesla are early adaptors but too much emphasis is put on their moves...we are already seeing a strong commitment from the established motor vehicle companies to match and/or exceed their offerings - some examples are:

*General Motors has a Car going into production this year that will match Tesla's Model 3 price tag and will also deliver a range of 200 Miles.
*Mercedes-Benz to electrify all model series in €7B R&D investment. (this investment is over 2 years... Not bad considering Tesla's market cap is $30B USD)
*Volkswagon to build $15.5 Billion Battery Factory in a bid to reposition itselt in Electric Car Industry. (A battery factory three times the cost of Tesla's)

Something that could be overlooked by investors is Toyota last year invested $4 Billion+ in hydrogen fuel cell technology. Is that worrisome for Cobalt investors? Certainly not as cobalt is a required component of this technology.

Formation Metals amongst other Cobalt Junior miners (BPL.ASX, GSW.TSXV, CUZ.TSXV) also have paid subscriptions on the "investorintel" website to which they are often referenced when there are articles on Cobalt. I find the articles lack in merit when they blatantly reference their clients. Believe it or not at one point Green Swan Capital's market cap was almost matching CNJ's and this is a project based on a ripped piece of paper containing an assay result found in someones basement with zero development done.

With this exciting and disruptive future ahead I have no idea why the market isn't valuing the Mt Thirsty project significantly higher - if I had to attribute it to something it would be the lack of exposure and not having the "Tesla factor". I challenge anyone to find a listed low cost/ high production cobalt project like it.

Expand

"With this exciting and disruptive future ahead I have no idea why the market isn't valuing the Mt Thirsty project significantly higher -"
---
One announcement would do it.

Any press in a Monday issue of The Australian mentioning a mega-tenement and the Creasy name would light a wick.

Barry Fitzgerald writes about Lithium's second wind today. Does cobalt get a mention?

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(20min delay)
Last 1.2¢		Change 0.000(0.00%)		Mkt cap ! $16.47M

Open	High	Low	Value	Volume
1.2¢	1.3¢	1.2¢	$61.24K	5.086M


Last 1.1¢		Change 0.000 ( 8.33 %)
Open	High	Low	Volume
1.1¢	1.1¢	1.1¢	100000
Last updated 14.25pm 05/06/2024 ?

Cobalt Promotion, page-33

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