No opinion on First Cobalt, but Idaho is interesting for Cobalt....

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BreakingBad01

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16/03/18

11:55

Post #: 31803964
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Originally posted by mineralised ↑

I'm not sure if anyone else is following but there is a bit of a mini-bubble emerging around the town of "Cobalt" in Ontario. This area has had some small production of cobalt as a by product of silver in the past and largely consists of very thin veins 0.5-2m and underground mining, with cobalt to arsenic ratio of 1:1.

So the big story or promotion around "First Cobalt" in Canada was they had the largest ground holding in the Cobalt, Ontario "District" along with a past producing plant for cobalt extraction, the good old "fast track to early cash flow" idea. Even after some very weak drill holes, with no indication of developing a serious cobalt resource they had been valued by the market at $240m MC.

First Cobalt is just one of many "Ontario Cobalt District" plays and I am afraid to add up the combined market caps of these companies.

Now despite their leading position in Cobalt, Ontario, Canada they have gone and diluted themselves by roughly 58% to acquire a project in Idaho, USA. This is another area with a mini bubble gradually inflating with Idaho cobalt plays.

Now why would you dilute the "big dog district play" in the Cobalt, Ontario district, by 58% to grab a MINISCULE resource in Idaho, USA. You sold all your shareholders the dream of the biggest land position and early cash flow and then pulled off massive dilution of that great "story" for a new position in Idaho.

Obvious reason: There's not much Cobalt, in the town of Cobalt. Very bearish for the whole district in my opinion. Unless someone delivers real results that bubble will collapse this year, cobalt price or not, you still need to show some cobalt to be in the game.

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No opinion on First Cobalt, but Idaho is interesting for Cobalt. I made a triple on eCobalt there. The resource they have may not be huge, but the grades are arguably one of the best in the world, there used to be an active mine over there atleast until the 70s IIRC and importantly Idaho is like 200 odd miles from Nevada (aka Tesla's Gigafactory). So they do have a few things going for them, do those Idaho Cobalt folks.

Last edited by BreakingBad01: 16/03/18

NZC Price at posting: 36.5¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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