Pure-Play Exposure To Cobalt
Cobalt 27 Capital Corp. (“Cobalt 27”) is a minerals company that offers pure- play exposure to cobalt, an integral element in key technologies of the electric vehicle and battery energy storage markets. Cobalt 27 has acquired one of the world’s largest stockpiles of physical cobalt and intends to manage and grow a cobalt-focused portfolio of streams, royalties and direct interests in mineral properties containing cobalt. Cobalt 27 identified cobalt as a commodity with attractive supply-and-demand fundamentals driven by the rapidly growing electric vehicle and battery energy storage markets.
Cobalt 27’s management team evaluated various opportunities to invest in cobalt and decided the most attractive structure would be to create a company with an asset base underpinned by physical cobalt material and enhanced with growth opportunities in the form of streams, royalties and direct interests in mineral properties containing cobalt.
Cobalt 27 Strategy
Cobalt 27’s strategy of holding physical cobalt, streams and royalties will avoid the operational, environmental, closure, capital risks and the binary upside/downside associated with typical mining companies. Similarly, Cobalt 27 will not be exposed to any operational and competitive risks borne by the automakers and battery producers. By holding physical cobalt and cobalt streams and royalties, the Company will be able to participate in cobalt price appreciation while minimising exposure to risks.
Share Price Performance
Anthony Milewski – Chairman, CEO & Director
Justin Cochrane – President & COO
Cindy Davis – CFO
Frank Estergaard – Director
Nick French – Director
John Kanellitsas – Director
Candace MacGibbon – Director
Jonathan Hykawy – Managing Director, Stormcrow
Phil Day – 20 years focused on mining operations and design
Andrew Ferguson – Executive Director and CEO of APAC Resource
Robert Mitchell – Managing Member of Portal Capital, Portfolio Manager of Green Energy Metals Fund and Co. , and Odysseus Fund
Neil Warburton – Non-Executive Director at Independence Group
Vincent Metcalfe – Vice President at Osisko Gold Royalties Ltd.
Ted Miller – Ford Motor Co. senior manager of energy storage and materials strategy and research
Mark Selby – President & CEO of RNC Minerals
Dr. Prabhakar Patil – Former CEO of LG Chem Power Inc.
Andrew Ham – PhD Structural Geology; 20+ years mining investment
Capital Structure and Shareholders
Pala Investments Ltd. (Switzerland) – 18.6%
Portal Capital – 11.1%
Blackrock – 8.8%
Fir Tree Partners – 3.7%
Sovereign Wealth Fund – 2.9%
Increasing Cobalt Demand
- Majority of cobalt’s expected demand growth is attributable to rechargeable batteries
- 100 million EVs by 2030 targeted by the Paris Declaration on Electro-Mobility and Climate Change
- Requires an increase of >4x current annual cobalt production
- Robust demand expected — forecasted 6.9% CAGR from 2016 to 2020
- Cobalt demand in Li-ion batteries is expected to grow at a 11.7% CAGR from 2016 to 2022
Physical Cobalt Materials
- Cobalt 27 provides an investment alternative for investors interested in investing directly in cobalt.
- Cobalt 27 invests in physical cobalt and does not intend to actively speculate with regard to short-term changes in cobalt prices.
Physical Cobalt Holdings
- Cobalt 27 currently holds 2,158 tonnes of physical cobalt at C$185million
- 1,487 tonnes of premium-grade cobalt
- 671 tonnes of standard-grade cobalt
- All cobalt owned by Cobalt 27 is insured and stored at secure warehouses located in Baltimore, Antwerp and Rotterdam.
- Warehouses are certified by the London Metal Exchange and meet its international standards of warehousing. These standards provide requirements for security, size, rates, logistics, accessibility, material handling, delivery points, and permitting.
Cobalt 27’s initial growth strategy will focus on physical cobalt, streams and royalties; however, the Company may also seek the acquisition of interests in producing mines, development projects or exploration properties. Interests may be pursued in both primary cobalt deposits, as well as properties in which cobalt is a by-product or co-product with other metals. The Company believes investments in such properties could leverage the Company’s industry expertise and broaden the scope of potential growth opportunities.
Streams and Royalites
Cobalt 27 intends to enhance its exposure to cobalt through the acquisition of new or existing streams and royalties in producing mines, development projects and exploration properties. Cobalt 27’s management has significant streaming and royalty experience and is actively pursuing streams and additional royalties. The focus will be on streaming opportunities that could provide the Company with near-term cash flow and royalties on exploration-stage cobalt properties that will provide longer-term optionality on the price of cobalt.
The Company has acquired seven net smelter return (NSR) royalties on exploration-stage properties containing cobalt. These royalties on potential future cobalt (Co) production are summarised in the following table: