Cobalt continues to surge and all the signs are that it will keep on going. HIG is well placed because not only does it have about 10% (and possibly 20% in the future) of the cobalt operation at Ramu, it should soon announce details on its cobalt/nickel resource at Sewa Bay (which is 100% HIG). Two comments about the recent update on cobalt/nickel by the joint venture at Ramu.
Firstly, it is consistent with previous reports and it puts Ramu on the world's stage. Key figures are: a) its resource of 124 million tons at about 0.1% cobalt plus 1% nickel, and b) its output of about 33,000 ton of cobalt over 30 years. From these figures we can say it has about 100,000 tons of cobalt (plus nickel) and it is cashflow positive right now (after doing the hard yards). If we compare these figures with other cobalt companies, we are in a great position. Some are reporting good prospect, but almost all of them have not started mining yet - they are still trying to determine the grade and size of their resources and only then can they calculate if their project is likely to be profitable. After that they will need finance to built their operation. So, HIG is in a very good position. However, when you compare share prices, HIG is about 10 times less than these other companies. But, in the last few days the sellers have been disappearing, and the buyer's prices have been edging higher. Sooner or later HIG will get noticed by team-cobalt and whamooo. What do they call stocks that increase by 10 fold? Maybe the quarterly report will get the action started.
Secondly, some cobalt exploration companies with laterite despoits are reporting good levels of scandium in their resources. I haven't heard from HIG about its concentrations of scandium, only chromite from Dogon's posts. I wonder if any of you HIG guys know whether other metals are present in the resource (sounds a simple question, but if you don't look ...)
OK, back to work.
HIG Price at posting:
6.2¢ Sentiment: Hold Disclosure: Held
