The Canadian cobalt stocks on our list have had a weak month, but strong six-month returns
SmallCapPower | February 20, 2018: Cobalt prices have increased 120% Y/Y, driven by increased demand for electric car batteries. The average electric car contains 25 pounds of cobalt, as opposed to the 30 grams used in most electronic devices. However, the Canadian cobalt stocks we’ve identified today have declined an average of 24%, underperforming the TSX-V’s decrease of 6%. These companies stock prices have decreased over the past month, but strong six-month returns indicate that they could rebound as cobalt interest might return. Furthermore, all these companies operate in North America, and so are far less affected by geopolitical instability and the Democratic Republic of the Congo’s new mining code.
Giga Metals Corp. (TSXV:GIGA) – $0.44
Giga Metals is a Canada-based mining company operating in British Columbia. The Company’s primary asset, the Turnagain project, hosts reserves of 865Mt grading 0.2% Ni and 0.01% Co. GIGA expects to produce 44,000t/y Ni and 2,400t/y Co at full production.
Power Americas Minerals is an energy-metals explorer focused primarily on its Kittson Cobalt Project located in northern Ontario. Kittson, which has not been worked since the 1950’s, comprises five unpatented mining claims for 1,090 Ha, and is located 8 km NW of the town of Latchford and 120 km north of North Bay. The Kittson project includes two former producing mines called Shakt-Davies and Kittson, and is adjacent to a third, the Edison mine, all of which were principally developed for their cobalt rather than silver content. The Company is currently expanding its land position by acquiring an additional 100% interest in 10 unpatented mining claims, totalling 140 units, which comprise a combined area of ~2,240 hectares. Eight of the new claims are contiguous to the Kittson property. Additional property acquisitions are also planned for 2018.
Castle Silver Resources Inc. (TSXV:CSR) – $0.39
Castle Silver Resources (“Castle Silver”) is a Canada-based junior natural resource company focusing on the exploration and redevelopment of former silver and cobalt mine properties in northern Ontario near the town of Cobalt. The projects include the 2,855-hectare Castle Silver Mine property near Gowganda and, the Beaver and Violet historical-producing mines near Cobalt, Ontario. The Company intends to change its name to “Canada Cobalt Works Inc.”
ePower Metals Inc. (TSXV:EPWR) – $0.35
ePower is a Canada-based cobalt company operating in Idaho. The Company’s Panther Creek project hosts reserves of 3.6Mt grading 0.5% Co, 0.02 oz/t Au, and 0.7% Cu. The Company plans to conduct a drilling program in 2018.
Cobalt Power Group Inc. (TSXV:CPO) – $0.23
Cobalt Power Group is a Canada-based mining company operating in Ontario. The Company owns two exploration properties ~420 km northwest of Ottawa, in historically silver and cobalt rich areas. The Company is conducting exploratory drilling at its Smith Cobalt project, with highlights including one hole assaying 1.7% Co and 42.5 g/t over 0.1m. CPO expects to expend $2.4M on further exploration over 2018.
Ubika Research/SmallCapPower has received compensation from Power Americas Minerals and Castle Silver to provide analyst research coverage. For full disclosure please visit here >>
Disclosure: Neither the author nor his/her family own shares in any of the companies mentioned above.
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