The Canadian cobalt stocks on our list have seen stock-price movement of more than 15% month to date with strong volume momentum
SmallCapPower | September 20, 2017: Driven by increasing demand for batteries used in electronic vehicles and supply shortages, global cobalt prices continue to surge and currently trade at multi-year highs of $28/lb. According to Darton Commodities, annual demand for cobalt is projected to exceed 120,000 tonnes by 2020, up 30% from the 93,950 tonnes consumed in 2016. To take advantage of this secular bullish trend in cobalt, investors could invest in miners that are focused on cobalt. Today we have identified four Canadian cobalt stocks that have delivered a stock-price movement of more than 15% month to date accompanied by strong volume momentum.
Katanga Mining Limited (TSX: KAT)
Katanga Mining Limited operates a large-scale copper-cobalt project with substantial high-grade mineral reserves and integrated metallurgical operations in the Democratic Republic of Congo (DRC). Katanga holds a 75% stake in two joint ventures with Gécamines, a state-owned mining company in the DRC.
- Market Cap: $1,950 million
- 30 Day Average Volume: 120,050
- 12 Month Average Volume: 964,600
- Price Chg Pct MTD: 40.3%
Cobalt 27 Capital Corp. (TSXV: KBLT)
Cobalt 27 Capital Corp. offers pure-play exposure to cobalt. The Company’s current business strategy involves investments in physical cobalt and acquisition of streams and royalties in producing mines, development projects and exploration properties. Cobalt 27’s physical cobalt assets include 2,158 tonnes comprising 1,487 tonnes of premium-grade cobalt and 671 tonnes of standard-grade cobalt. The Company has acquired seven net smelter return (NSR) royalties on exploration-stage properties containing cobalt including North Canol Properties in Yukon; Triangle, Rusty Lake and Professor & Waldman Properties in Ontario and Sunset Mineral Property in British Columbia.
- Market Cap: $234.8 million
- 30 Day Average Volume: 39,097
- 12 Month Average Volume: 12,291
- Price Chg Pct MTD: 22.6%
Asian Mineral Resources Limited (TSXV: ASN)
Asian Mineral Resources Limited acquires, explores, and develops mineral properties. The Company currently has exploration license applications and a majority interest in nickel/copper/cobalt deposits located in Vietnam. In April 2017, the Company entered into a net smelter royalty return agreement with Cobalt 27 Capital Corp. related to the sale of cobalt by AMR from its Ta Khoa concession in Vietnam. As part of the agreement, Asian Mineral will receive C$300,000 equivalent in common shares of Cobalt 27 in exchange for granting Cobalt 27 a 3% net smelter return on sales of cobalt from the Ta Khoa concession.
- Market Cap: $27.6 million
- 30 Day Average Volume: 151,442
- 12 Month Average Volume: 39,770
- Price Chg Pct MTD: 40.0 %
First Cobalt Corp. (TSXV: FCC)
First Cobalt Corp. is focused on building a global portfolio of assets that are highly leveraged to the cobalt market. The Company is currently advancing its Silver Centre property in Ontario that includes the former producing Keeley-Frontier mine, a high-grade mine that produced over 3.3 million pounds of cobalt and 19.1 million ounces of silver.
- Market Cap: $36.1 million
- 30 Day Average Volume: 726,443
- 12 Month Average Volume: 291,234
- Price Chg Pct MTD: -18.4%
Disclosure: Neither the author nor any of the principals at SmallCapPower, or their family members, own shares in any of the companies mentioned above.
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