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Friday, September 29, 2017 Derek Macpherson

eCobalt De-Risks ICP with Feasibility Study

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eCobalt Solutions (TSX:ECS) reported results from the feasibility study completed for its fully-permitted Idaho Cobalt Project (ICP) in Idaho. The 800 tpd project is estimated to produce 31.8 million lbs of cobalt, 2.4 million lbs annually, over 12.5-year mine life, with an after-tax NPV of $135.8 million, IRR of 21.3%. The project remained essentially unchanged from the 2015 PEA, with the exception of lower head grades which resulted in lower metal production. This was offset by updated cobalt prices to better reflect current market conditions, resulting in project economics being essentially unchanged. As well, the pre-production capex has increased, primarily driven by a higher cost estimate for the Cobalt Processing Facility. In our view, the study materially de-risks the project allowing the company to advance the ICP project into detailed engineering, financing and eventually into construction. As well, there appears to be some opportunities for project improvements both with respect to the mine plan and capital costs. Next material catalysts likely include a project financing to support construction in 2018 and ultimately production in 2020. We continue to believe eCobalt is well-positioned to take advantage of rising cobalt prices. read more


Thursday, August 10, 2017 Derek Macpherson

eCobalt Begins Pre-Construction; FS Expected in September

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eCobalt Solutions (TSX:ECS) provided an update regarding the feasibility study for its Idaho Cobalt Project (ICP), which is expected to be completed in September of this year. The company is now finalizing the mine design and schedule with the CPF design completed and site purchased. In the meantime, pre-construction activities are being fast-tracked for the fall, in advance of 2018 construction. The activities currently under review include, road work, transport gravel for construction material, move crusher to site, burial of pipeline and septic, install temporary power and remediation of Tailings Waste Storage Facility drainages. The United States Department of Agriculture Forest Service is reviewing whether to take the project off care and maintenance. We continue to believe eCobalt is well-positioned in the improving cobalt market, the feasibility study is an important key catalyst for the company in the near term. read more


Monday, July 24, 2017 Derek Macpherson

RCKS Drilling Deeper Lunch; Cobalt: A Battery Metal

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Last week, Red Cloud Klondike Strike Inc. (RCKS) in partnership with Stormcrow Capital hosted another installment of our Drilling Deeper Lunch series, this time featuring three companies focused in the cobalt exploration, development and royalty/holding company space. Dr. Jon Hykawy co-founder of Stormcrow opened the event discussing the cobalt market and other key battery metals, followed by presentations from Cobalt 27 Capital Corp. (TSXV:KBLT), First Cobalt Corp. (TSXV:FCC) and eCobalt Solutions Inc. (TSX:ECS).  read more


Wednesday, May 31, 2017 Derek Macpherson

eCobalt Makes Progress on ICP's Feasibility Study

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eCobalt Solutions’ (TSX:ECS) provided an update on the progress made regarding the feasibility study for its Idaho Cobalt Project (ICP), initial results are expected at the end of Q2 or early Q3. Since the company’s last update in March, advancements have been made with the completion of the resource model, mine design and schedule and additional metallurgical testing. In addition, basic processing engineering work for the mill/concentrator and Cobalt Production Facility (CPF) has been completed, including an option to purchase land for the CPF with some infrastructure already in place. It has been determined that cobalt sulphate crystals from ICP meet the standards for the rechargeable battery sector, and the company notes, a sample has already been sent to a potential offtaker. We continue to believe eCobalt is well-positioned in the improving cobalt market.  read more


Monday, March 06, 2017 Derek Macpherson

eCobalt Advances ICP as Cobalt Prices Increase

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eCobalt Solutions’ (TSX:ECS) provided a corporate and operations update on its Idaho Cobalt Project (ICP) near Salmon, Idaho. The update suggests progress has been made in advancing the project and that the feasibility study is on track to be completed in Q2. A third-party market study established that cobalt sulfate samples produced from ICP meets the standards for the most recent NMC and NCA battery technologies. We view this positively as it should allow the company to complete an off-take agreement. In addition, the company announced it has completed the ~800m metallurgical drill program which commenced in Q3 2016. Cobalt sulfate crystal samples produced from the drill core are expected to be made available to potential off-take clients for due diligence purposes. Earlier in Q1, eCobalt closed a C$17.25 million financing to fund the project to a construction decision. With the project progressing, we believe eCobalt is likely in a good position to take advantage of the increasing cobalt prices. Cobalt prices have increased by ~55% since the beginning of 2017. read more


Sunday, February 26, 2017 Derek Macpherson

RCKS Pre-PDAC Mining Showcase Presenter Preview

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On Friday March 3th, 2017, Red Cloud Klondike Strike Inc. will be hosting its 5th Annual Pre-PDAC Mining Showcase. The event features presentations from 21 companies, including a themed lunch presentation by leading corporations in the gold mining sector. Visit the event page for more details on the day’s schedule. In this post, we provide a brief preview on the 21 presenting companies and 13 banner sponsors that will also be in attendance.  read more


Wednesday, November 30, 2016 Derek Macpherson

Cobalt: Our Favourite Battery Metal

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Battery production is expected to ramp up significantly in the next few years and in our view, the best way to play this theme via mining is with cobalt and the underlying equities. While investors have primarily been focused on lithium, and to a lesser extent graphite, to-date, we believe that cobalt, which is the largest battery metal component by weight of the favoured lithium ion battery technology, is the best way to play this theme going forward because of expected meaningful demand growth coupled with lack of supply growth and the elevated political risk from the world’s largest miner of cobalt, the Democratic Republic of Congo (DRC). While we have identified several exploration and development stage companies looking to advance primary cobalt projects, we favour eCobalt Solutions Inc. (TSX:ECS), which is developing the Idaho Cobalt Project (ICP), because it is best positioned to benefit from the anticipated near to medium term increase in the Cobalt price.  read more


Sunday, October 30, 2016 Derek Macpherson

Site Visit: eCobalt’s ICP is Ready to Go; Offtake Key

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Last week we visited eCobalt Solutions’ (TSX:ECS) Idaho Cobalt project (ICP) near Salmon, Idaho. Our visit to the project was highlighted by three key points. First is that construction is ready to resume, with all the pieces in place to build the mine, along with permits; eCobalt can restart the project at any time. Secondly, the project is likely to grow beyond the current 12.5 year mine-life, just not yet. And finally, in our view one of key elements needed for the project to move ahead is a cobalt sulphate heptahydrate off-take agreement, which we would expect to be completed in conjunction with the ongoing feasibility study.  read more


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