How Mining Stocks may be Benefiting From Political and Social Forces Pushing Electric Vehicle (EV) Demand to New Levels
PALM BEACH, Florida, Oct. 15, 2019 /PRNewswire/ -- The demand for electric vehicles, of course, creates an increased demand for electric vehicle batteries and both exhibit signs of a strong continued growth rate for the near future and beyond. It is more than just a supply and demand equation, there are worldwide political and social forces also pushing this wagon down the trail for quite some time. As a result, governments get involved and they pass initiatives to accelerate the shift of their nations vehicle fleet from combustion to electric vehicles, which has led to rapid growth in the manufacturing and sale of electric vehicles. According to the latest research report on 'Electric Vehicles (EV) market' by Market Study Report, LLC, the global electric vehicles market is anticipated to reach USD $912 billion by 2026. Which fits hand and glove with another report (from Grand View) which says that the electric vehicle battery market size was valued at USD 13,383.0 million in 2018 and is expected to register a CAGR of 16.7% from 2019 to 2025. Active mining stocks in the markets this week include 21C Metals Inc. (OTCQB: DCNNF) (CSE: BULL), First Cobalt Corp. (OTCQX: FTSSF) (TSX-V: FCC), Canada Cobalt Works Inc. (TSX-V: CCW) (OTCQB: CCWOF), Lithium Americas Corp. (NYSE: LAC) (TSX: LAC), Cobalt 27 Capital Corp. (OTCQX: CBLLF) (TSX-V: KBLT).
Grand View also sees that the growing emphasis by leading automakers around the world on developing and selling electric vehicles is expected to drive market growth for EV batteries. It also reveals that the Asia Pacific region accounted for the largest market share in 2018. China alone accounted for a 28% share of the global market and that countries in Asia Pacific, especially China, India, and South Korea, have been witnessing a rising electric vehicle battery demand over the past few years in line with the growing preference for electric vehicles. Battery concentration is highly concentrated in China owing to the low maintenance costs and low labor costs.
21C Metals Inc. (CSE: BULL) (OTCQB: DCNNF) BREAKING NEWS: 21C Metals is pleased to announce the awarding of a diamond drill contract to Vital Drilling of Val Caron, Ontario. The diamond drill program comprised of 10 to 15 holes will commence within the next week.
Following on from a successful summer sampling program (Press Release September 17, 2019) the diamond drill program will focus on expanding the Pit Constrained Inferred Mineral Resource Estimate of 523,000 Palladium Equivalent (PdEq) ounces and determining a potential higher grade starter pit location.
Drill holes have been selected by 21C Metals geologists with the assistance of technical advisor Richard H. Sutcliffe, PhD, PGeo. The NI 43-101 Initial Mineral Resource Estimate (Table 1) for the East Bull Palladium Project is filed on https://www.sedar.com/.
The recent demand for Palladium has driven the Palladium price to over $1,600/oz (USD). The implementation of cleaner emission standards by governments around the world has increased the use of Palladium and Platinum in catalytic converters for internal combustion powered vehicles. This demand has been supported by the growth in sales of hybrid vehicles which are growing faster than electric car sales. Supply is already constrained and wage negotiation deadlocks in South Africa may potentially further effect supply.
East Bull is located ~ 90 kilometers west of Sudbury Ontario. Sudbury is home to the fully integrated base and precious metal mining, processing, and smelting complexes of Vale Canada Limited and Glencore PLC.
Wayne Tisdale, President of 21C Metals, commented: "We are pleased to be able to move our exploration program forward so rapidly after such a successful summer sampling campaign. This has been possible thanks to our excellent geological and operational teams and the ease of accessibility of the project". Read this entire release including results and more news for 21C Metals at: https://www.financialnewsmedia.com/news-bull/
Other recent developments in the mining industry include:
Europe and North America have also been witnessing a rising electric vehicle battery demand owing to the growing sales of electric cars in these regions. Some of the prominent electric vehicle manufacturers, including Tesla Motor Inc., Ford Motor Company, and Bayerische Motoren Werke AG, are based in the U.S. and Germany. Hence, the U.S. and Germany have taken a lead in electric vehicle battery production and sales. Moreover, the continued development of electric cars is intensifying competition among market players to provide better and cost-effective solutions. The intense market competition bodes well for the market growth.
Cobalt 27 Capital Corp. (TSX-V: KBLT) (OTCQX: CBLLF) recently announced that, at today's annual general and special meeting of shareholders (the "Meeting"), Cobalt 27 shareholders have approved the arrangement resolution (the "Arrangement Resolution") under which Pala Investments Limited ("Pala") will acquire 100% of Cobalt 27's issued and outstanding common shares (other than the approximately 19% that Pala already owns) by way of a plan of arrangement under the Business Corporations Act (British Columbia) (the "Arrangement"). Under the Arrangement, each Cobalt 27 shareholder will receive total consideration of C$5.92 per share, comprised of C$4.00 in cash plus one share of Nickel 28 Capital Corp. ("Nickel 28") with an implied value of C$1.92 per share.
The Arrangement Resolution required and received approval by 662/3% of the votes cast by shareholders present in person or represented by proxy at the Meeting and (ii) a simple majority of the votes cast by shareholders present in person or represented by proxy at the Meeting, excluding the votes cast by such shareholders as are required to be excluded pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions.
Canada Cobalt Works Inc. (TSX-V: CCW) (OTCQB: CCWOF) recently announced that the Company has signed a binding Letter of Intent (the "Transaction") to acquire the assets of PolyMet Resources Inc. ("PolyMet"), owner of PolyMet Labs (ISO certified) and the Northern Ontario Silver-Cobalt Camp's only permitted and operating mineral and precious metal processing facility.
The Transaction, consummated at a strategic time in the precious metals cycle, provides Canada Cobalt with multiple immediate and long-term advantages including a high capacity bullion melting furnace to pour payable silver and gold dore bars. The 23,400 sq. foot facility with district leading sampling and analytical capabilities can also host the Company's proprietary Re-2OX Process for environmentally friendly extraction of cobalt, precious and base metals.
First Cobalt Corp. (TSX-V: FCC) (OTCQX: FTSSF) recently announced that power has been restored to the First Cobalt Refinery and that a team of engineers and technicians has been deployed to commence a field program. The work is in support of an ongoing definitive feasibility study ("DFS") led by Ausenco Engineering Canada on a recommissioning and expansion of the existing First Cobalt Refinery, located a 5 hour drive north of Toronto, Canada.
A scoping study released in May 2019 concluded that the First Cobalt Refinery could be expanded from its current 12 tonne per day (tpd) throughput capacity to 55 tpd. The study and supporting metallurgical test work estimated that the Refinery was capable of producing over 5,000 tonnes per year of battery-grade cobalt in sulfate for the electric vehicle industry at a capital cost of US$37.5 million, which could represent up to 5% of the global market for refined cobalt. The Company is now contemplating recommissioning the Refinery at 12 tpd in 2020 and then expanding to 55 tpd in 2021.
Lithium Americas Corp. (TSX: LAC) (NYSE: LAC) Recently provided results of a 40,000 tonnes per annum ("tpa") definitive feasibility study ("40,000 tpa DFS" or "DFS") on the Caucharí-Olaroz lithium project ("Caucharí-Olaroz" or the "Project") currently under construction in Jujuy Province, Argentina. Caucharí-Olaroz is 100% owned by Minera Exar S.A. ("Minera Exar"), a 50/50 joint venture between Lithium Americas and Ganfeng Lithium Co., Ltd. ("Ganfeng Lithium"). Lithium Americas and Ganfeng Lithium have authorized Minera Exar to proceed with the plan to produce 40,000 tpa of battery-quality lithium carbonate ("Li(2)CO(3)") as outlined in the DFS.
"With construction underway and funding in place, the results of the 40,000 tpa DFS further supports Caucharí-Olaroz as a scalable, high-purity source of lithium carbonate for battery material customers," commented Jon Evans, President and CEO of Lithium Americas. "We are thankful for the hard work from the team at Minera Exar, the support from the government of Jujuy, and our 50/50 joint venture partner, Ganfeng Lithium, for their financial and technical contributions towards optimizing the process design and securing key equipment for the lithium carbonate plant."
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