ECOBALT SOLUTIONS COM NPV
ECOBALT SOLUTIONS COM NPV (OTCMKTS:ECSIF) fell 3% after announcing positive results from a feasibility study of its Idaho Cobalt Project (ICP). The drop came as a surprise after the independent exploration company said it was moving, buoyed by the positive results, to the next stage.
The company intends to pursue project financing for the vertically integrated project as it gears up for construction and production. Pre-construction activities are already underway in preparation of the mine development.
ECOBALT SOLUTIONS COM NPV (OTCMKTS:ECSIF) has outperformed the overall industry after rising by more than 50% for the year. However, the stock has come under pressure in recent weeks after rising to $1.125. It awaits to be seen if a pullback to the $0.93 a share mark is a minor correction or the beginning of a new trend.
Development of the Idaho Cobalt Project mine should continue to strengthen investor’s sentiments on the stock. The project’s competitive strength lies in the facts that it is located in the United States and that it boasts high-grade reserves.
“The feasibility study highlights multiple opportunities to enhance the economics of the project and these include expansion of the resource, optimization of the mine plan to process higher grade material and detailed engineering at the CPF to further reduce risk and improve capital and operating costs,” said CEO Paul Farquharson.
ICP Project Opportunities
The Idaho Cobalt Project is the only environmentally permitted cobalt project in the United States and could end up being the sole primary producer of cobalt. The Idaho Cobalt Project is thus an important development in enabling the sound supply of battery grade cobalt in the U.S.
ECOBALT SOLUTIONS COM NPV (OTCMKTS:ECSIF) should be able to generate a substantial amount of returns from the mine given the electric vehicle industry outlook. Cobalt is a critical ingredient in the cathodes of rechargeable batteries. As demand for electric cars continues to increase so should the demand of batteries needed to power the cars.
ECOBALT SOLUTIONS COM NPV (OTCMKTS:ECSIF) also stands to generate significant value from marketable by-products that will be generated from the mine. The by-products include copper sulfate, magnesium sulfate as well as gold.
The most significant risks associated with the ICP project include lower metal recoveries as well as uncontrolled dilutions and operating and capital cost escalation.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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