While most investors looking to capitalize on the Tesla Gigafactory have been loading up on lithium exploration stocks, NIA recently discovered that a huge shortage was rapidly developing for another key lithium battery raw material: cobalt. Because cobalt doesn’t trade on any U.S. futures exchanges, when NIA began alerting you about it one month ago – nobody in the mainstream media had reported on the price of cobalt rising for the previous 22 consecutive weeks. NIA’s proprietary research quickly determined that by cobalt rising for 22 straight weeks – it had shattered a record set 44 years earlier when lean hogs rose for 18 straight weeks.
NIA quickly realized that despite Tesla’s cobalt raw material costs being just about equal to its lithium raw material costs, there were very few publicly traded companies that were focused on cobalt exploration. NIA was aware of nearly 60 lithium exploration stocks, but could only find a total of 24 cobalt related stocks on North American exchanges. To make matters worse, while all 60 lithium exploration stocks own projects that are focused primarily on lithium – we determined that 19 of the 24 cobalt related stocks were actually focused primarily on copper, nickel, gold, or silver. Most of their projects contained miniscule amounts of cobalt that they hoped to one day produce as a by-product of the main commodity.
NIA could only find a total of 5 companies with projects that were primarily focused on cobalt exploration and two of them were located in the Democratic Republic of the Congo, a politically unstable region responsible for 60% of the world’s current cobalt mining supply – where child labour has become a major concern. America’s largest corporations that use cobalt as a raw material – are being pressured to ban cobalt imports from Congo. Human rights organizations are demanding that they secure all cobalt supplies from ethical mining sources.
In 2016, only 690 metric tons of cobalt were mined in the U.S., and all of it was mined as a by-product of copper and nickel. Tesla’s Gigafactory alone will require more than 10X this amount on an annual basis and U.S. mined cobalt is likely to soon command a HUGE premium! NIA has determined that there are only two publicly traded companies with major U.S. cobalt projects – and both projects are located along the Idaho Cobalt Belt. Most importantly, both projects contain very high cobalt grades and are focused primarily on cobalt exploration/production!
One of the two companies is eCobalt Solutions (TSX: ECS) and it has already reached a market cap of $150 million. The second company is Scientific Metals Corp (TSXV: STM), which NIA first suggested one month ago at $0.60 per share – predicting that it would double or triple in value within 2-3 months. STM just reached a new all-time high this morning of $0.96 per share, up 60% from NIA’s suggestion price!
With only 47.5 million shares outstanding, STM’s current market cap at $0.96 is only $45.6 million – a small fraction of ECS’s valuation. A few weeks ago, NIA’s President flew to Mexico to meet with Wayne Tisdale the President of STM. He has one of the most impressive track records in the mining/resource exploration sector. One of his most recent previous deals Rainy River Resources rose from $0.25 to a high in 2011 of $13 per share where it traded at a peak market cap of $1.3 billion. In 2013, the company was acquired by New Gold for $310 million.
When STM breaks $1 per share, we predict that it will explode to between $1.20 and $1.50 within the following 24-48 hours.
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. NIA has been compensated by STM $40,000 cash for a two-month investor relations contract. Never make investment decisions based on anything NIA says. This message is meant for informational and educational purposes only and does not provide investment advice.