The Canadian battery metals stocks we’ve uncovered are poised to gain from an increase in demand for electric vehicles
SmallCapPower | January 24, 2020: RBC Capital Markets estimates that, globally, Electric Vehicle (EV) sales are projected to increase 12 times by 2025 from 3M units sold in 2016, to 35M units sold in 2025. Major catalysts driving this 12-fold increase include concerns about climate change and government regulations aimed at phasing out internal combustion engine (ICE) vehicles to help reduce CO2 emissions. Cobalt, lithium, and nickel are the primary metals in an EV battery. Thus, a 12-fold increase in EV sales should translate into an increase in battery metals demand. Today we have discovered four Canadian battery metals stocks that could potentially benefit from a rise in demand for EVs.
*Share price data as at January 22, 2020, data obtained from S&P Capital IQ
Canada Cobalt Works Inc. (TSXV:CCW) – $0.68
Canada Cobalt Works is drilling three prospective properties in Ontario for cobalt: the Castle Mine, Violet Mine, and Beaver Mine. Each property is located in northern Ontario’s Cobalt camp near the town of Cobalt, Ontario, Canada’s most prolific cobalt district. The Company has a proprietary hydrometallurgical process known as Re-2OX for the creation of technical grade cobalt sulphate as well as nickel-manganese-cobalt (NMC) formulations. Canada Cobalt Works is strategically positioned to become a vertically-integrated North American leader in cobalt from extraction to recovery.
- Market Cap: $62.1M
- YTD-Return: +11.1%
- 30-Day Return: +12.9%
- 30-Day Average Trading Volume: 492,900
- 90-Day Average Trading Volume: 375,390
Neo Lithium Corp. (TSXV:NLC) – $0.68
Neo Lithium is an exploration-stage company, focused on advancing its Tres Quebradas 3Q Lithium Brine Project in Argentina. The 3Q property is 100% owned and comprised of 35,000 hectares in Latin America’s Lithium Triangle, one of the highest grades and lowest impurity lithium projects in the world. In June 2019, Neo Lithium reported drill results from the Tres Quebradas lithium brine project from 10 samples. The average of the 10 samples yielded over 178 metres, from 87 metres to 265 metres deep, of 1,117 mg/L Lithium, 11,319 mg/L K, Mg/Li=1.59 and SO4/Li=0.1.
- Market Cap: $79.9M
- YTD-Return: +36.0%
- 30-Day Return: +51.1%
- 30-Day Average Trading Volume: 196,900
- 90-Day Average Trading Volume: 208,590
First Cobalt Corp. (TSXV:FCC) – $0.16
First Cobalt is a North American cobalt company and owner of the only permitted primary cobalt refinery in North America. The Company is exploring a restart of the First Cobalt Refinery in Ontario, Canada, which could produce over 25,000 tonnes of cobalt sulfate per year from third-party feed. First Cobalt’s main cobalt exploration project is the Iron Creek Cobalt Project in Idaho, USA, which has an Indicated mineral resource estimate of 2.2M tonnes at 0.32% Co equivalents (0.26% cobalt and 0.61% copper), implying 12.3M lbs of cobalt and 2.7M tonnes at 0.28% Co equivalents (0.22% cobalt and 0.68% copper) for an additional 12.7M lbs contained cobalt.
- Market Cap: $59.6M
- YTD-Return: +7.1%
- 30-Day Return: +15.4%
- 30-Day Average Trading Volume: 273,230
- 90-Day Average Trading Volume: 314,090
Sherritt International Corporation (TSX:S) – $0.195
Battery and Base Metals
Sherritt International is a Canada-based producer of nickel and cobalt. The Company has operations in Canada, Cuba, and Madagascar. The Company has a 50/50 partnership with General Nickel Company S.A. of Cuba., a mineral producer based in Cuba, which is referred to as the Moa Joint Venture. The Moa Joint Venture mines, processes and refines nickel and cobalt for sale worldwide, with the exception of the United States. On July 31, 2019, Sherritt reported Q2/19 financial results, highlighted by revenue of $46.5M and the Company also announced that a NI 43-101 technical report was filed, which confirmed the Moa JV’s current mineral resource and outlined potential for a resource increase that would extend Moa’s mine life.
- Market Cap: $77.5M
- YTD-Return: +2.6%
- 30-Day Return: +8.3%
- 30-Day Average Trading Volume: 530,070
- 90-Day Average Trading Volume: 575,650
Ubika Research/SmallCapPower has received compensation from Canada Cobalt Works Inc. to provide analyst research coverage. For full disclosure please visit here >>
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