Demand for Cobalt and Lithium Projected to Increase as Electric Vehicles Sales Surge
NEW YORK, March 8, 2018 /PRNewswire/ --
According to a report published by Transparency Market Research, the global lithium-ion battery market is expected to reach USD $77.42 billion by 2024, at a compound annual growth rate of 11.6 percent from 2016 to 2024. Increasing use of consumer electronic devices and growing adoption of sustainable clean energy in the automotive sector is expected to drive the market in the coming years. By application, consumer electronics segment is expected to hold the biggest market share during the forecast year. A major component of the lithium batteries market is cobalt. Like nickel, cobalt is found in the Earth's crust only in chemically combined form. According to Benchmark Mineral Intelligence, 75% of lithium-ion battery cathode capacities are expected to contain some volume of cobalt by 2020. Cameo Resources Corp. (OTC: CRUUF), Glencore Plc (OTC: GLCNF), Millennial Lithium Corp. (OTC: MLNLF), US Cobalt Inc. (OTC: USCFF), Lundin Mining Corporation (OTC: LUNMF).
Benchmark Mineral Intelligence projects electric vehicle sales to take off around 2022 or 2023. Benchmark expects a lithium-ion demand of 500 gigawatt-hours by 2025, as opposed to the current 85 GWh. The heavily increasing demand has caused cobalt price per pound to increase threefold in the past three years alone. S&P Global Platts, BMO Capital Markets said, "Cobalt has a history of spikes higher following a period of underperformance, which is mainly related to the structure of the supply side. Without a primary mine supply side to speak of, cobalt has less of an elastic supply buffer than peers."
Cameo Resources Corp. (OTC: CRUUF) also listed on the TSX Venture Exchange under the ticker 'CRU'. Today the company announced breaking news that it has, "entered an agreement to acquire 100% of the Gochager Lake Nickel-Copper-Cobalt project claims from U.S. Lithium Corp. (the "Vendor").
The project, which consists of four claims covering 3,759 hectares, is located in northern Saskatchewan approximately 75 km north of the town of La Ronge. Historical exploration has identified semi-massive and massive Ni-Cu occurrences with significantly elevated levels of cobalt, a vital component in the manufacture of the latest generation of lithium ion batteries.
The Gochager Lake Nickel-Copper-Cobalt project includes reported drill assay results of up to 3.20% nickel, 6.52% copper and 0.22% cobalt (from the Saskatchewan Mineral Deposit Index [SMDI #0880] and the Vendor's 2017 technical report on the Gochager Lake Ni-Cu-Co Project). A selected grab sample assayed 3.1% Ni, 0.09% Cu, 0.23% Co. Cobalt mineralization is noted as co-occurring with the nickel and copper, but most historical drill holes lack cobalt analyses. The SMDI also reports assay values as high as 3.92% Ni, 0.70% Cu and 2.86% Co from drilling, although the Vendor's 2017 technical report notes that 2 subsequent re-analyses did not replicate that very high Co value. Historical resource estimates that do not meet the standards of National Instrument 43-101 were generated in 1968 and 1990 and are reported in the SMDI as well as the 2017 technical report. The 1968 resource for the Gochager deposit estimated 4.3 million tons grading 0.30% Ni and 0.08% Cu. In 1990, J.S. Steel reported that vertical and longitudinal sections were constructed from the existing data and an orebody with reasonably well defined limits was defined containing 1.8 million tons at 0.735% nickel-equivalent. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves, and the Company is not treating the historical estimate as current mineral resources or mineral reserves. However, the historical resources do point to the potential of the project to host a deposit.
Under the terms of the agreement, Cameo will issue 1 million shares and US$60,000 to the Vendor, additionally a third party Optionor will retain a 2% Net Smelter Royalty on the current claims. The Company will have the right to buy back 1% of the NSR for a purchase price of US$1.25 million. In addition, the Company agrees to incur development expenditures of US$225,000 on or prior to July 12, 2019."
Glencore Plc (OTC: GLCNF) is one of the world's largest global diversified natural resource companies and a major producer and marketer of more than 90 commodities. In 2017, the company announced it has purchased from subsidiaries of Fleurette Properties Limited ("Fleurette") the Fleurette group's remaining 31% stake in Mutanda Mining Sarl and an approximate 10.25% stake in Katanga Mining Limited. Mutanda is a high grade copper and cobalt producer, with its operations located in the province of Lualaba in the DRC. As of December 2016, Mutanda production was at an annualized production rate of above 200 ktpa. of copper cathodes and 24 ktpa of cobalt in hydroxide. Katanga operates a major mine complex in the Democratic Republic of Congo producing refined copper and cobalt. The company has the potential to become Africa's largest copper producer and the world's largest cobalt producer.
Millennial Lithium Corp. (OTCQB: MLNLF) is an emerging exploration and development company focused on world class lithium assets in Argentina. Recently, the company announced the results of its Preliminary Economic Assessment for the production of lithium carbonate from its Pastos Grandes Project in the province of Salta, Argentina. The PEA was prepared by WorleyParsons Chile S.A., a leading integrated independent engineering services firm with extensive experience in the design and construction of lithium brine projects in Argentina and Chile. The strong lithium mineral resource delineated at the Pastos Grandes Project and the PEA results form the basis for mine development.
US Cobalt Inc. (OTCQB: USCFF) is an exploration company focused on the acquisition and development of deposits of production grade metal which are critical components to power storage solutions including lithium-ion batteries for electric vehicles and consumer electronics. On January 16, 2018, the company announced analytical results from a further seven surface core holes drilled during 2017 at the Iron Creek project in Idaho, USA. All seven of these core holes encountered sulfide mineralization with significant cobalt values. Several of the holes have discovered much thicker cobalt-bearing zones not previously identified at Iron Creek. These mineralized zones occur in the footwall of the main No Name Zone. The interpretation of these results are allowing the expansion of the Company's search for cobalt mineralization outward from the previously targeted areas.
Lundin Mining Corporation (OTC: LUNMF) is a diversified Canadian base metals mining company with operations in Chile, the United States of America, Portugal, and Sweden, primarily producing copper, nickel and zinc. In addition, Lundin Mining holds an indirect 24 percent equity stake in the Freeport Cobalt Oy business, which includes a cobalt refinery located in Kokkola, Finland. The refinery, located on the Baltic Sea in Finland, processes unrefined cobalt and related metals and manufactures advanced inorganic products for use in a variety of applications in fast-growing end use markets. Freeport Cobalt is one of the world's largest suppliers of cobalt chemicals and powders for use in batteries, pigments and ceramics and powder metallurgy.
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