Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. are highly speculative, not suitable for all investors. is not directly employed by any company, group, organization, party or person. has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. is not responsible for investment actions taken by the reader. Nothing contained herein is a recommendation or solicitation to buy or sell any security. is to be considered implicit or explicit investment advice. Readers fully understand and agree that nothing contained herein, written by Peter Epstein of Epstein Research, (together, ) about First Cobalt Corp., including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. He holds an MBA degree in financial analysis from New York University's Stern School of Business.ĭisclosures: The content of this article is for information only. His background is in company and financial analysis. Peter Epstein is the founder of Epstein Research. I doubt any takeover would occur at < C$1.00/share. This suggests the company could become a prime takeover target. I believe that First Cobalt has enough upside to make it sexy and exciting, but far less downside than hundreds of battery metal / EV start-up companies.
As a result, First Cobalt's business will enjoy barriers to entry that virtually no other EV start-up or battery metals junior will be able to match. In addition to tangible hard asset value, the refinery has scarcity value as the only one of its kind in North America.
First cobalt full#
Once in production and generating cash flow, the market will see the full potential of the company's refinery. Adding a recycling component would be icing on the cake. It's a picks and shovels play on this highly compelling thematic. (TSX-V: FCC) / (OTCQX: FTSSF) is the opposite of a precarious EV start-up. Not every EV start-up will succeed, there will probably be some epic failures. For example, it's well within rail and trucking distance of major North American auto hubs in Michigan (USA), where 21 global OEMs have a headquarters or technology center.įew investment themes are as certain (in my opinion) as the transformative move from fossil fuel powered to electrified transportation across the globe. The refinery's strategic location is critically important, situated in Ontario, poised to supply domestic markets and sales into the U.S. I strongly believe that the C$192M figure should begin to place a floor under First Cobalt's valuation. demonstrated provincial and federal government support. increased cobalt prices (double 2020's lows), vii. strong progress on significant ESG initiatives, v. on track to fully-funding US$60M cap-ex hurdle by June 30th, iv. In the past year, the following de-risking initiatives and market changes have occurred: In the past week there were press releases on debt funding to restart the company's 100%-owned cobalt refinery and on an off-take arrangement for up to 100% of finished cobalt sulfate. Management continues to deliver on promises made. Last month, lithium major Albemarle raised its lithium demand estimate for 2025 by 40%, which obviously bodes well for cobalt demand.įirst Cobalt will be ready to meet the challenge. announced a US$174B program devoted to EV rebates, charging stations and battery plants.
The EV revolution was kicked up another notch last week as the U.S. to electric vehicles (EVs), arguably the most prominent investment narrative of the decade. (FCC:TSX.V FTSSF:OTCQX FCC:ASX) offers investors pure-play exposure to the paradigm shift from internal combustion engine cars / trucks / buses, etc. For the past few years I've been saying that First Cobalt Corp.
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