cobalt, page-4

Hi Scanpeak,

There are two points in your post that arise a little suspicion as far as I am concerned, and where they may contradict each other.


1) "This use of cobalt in rechargeable batteries has grown enormously in recent years, from 700tpa in 1995 to 14,000tpa in 2009 and a projected 25,000tpa by 2015."


And,..


2) "Cobalt has experienced a supply increase from 42,900 tonnes in 2003 to 59,550 tonnes in 2009. ".



Now Scanpeak, and from what I have gathered above, the World is overproducing what is currently needed as far as Cobalt goes. And, even if we were to take in full consideration the projected total use of Cobalt by 2015 from your post as Gospel, we will still be in an overproduction situation.


So, how will that benefit us if we will be producing and selling Cobalt in an already oversupplied market.??

The basics of "Supply and Demand" is quickly coming to mind here.

Could it be the reason that the Cobalt prices have taken a serious tumble over the last 5 or 6 years.??

Cheers
Buddy