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Dig, Baby, Dig: A Billion-Dollar Solution to the Cobalt Crisis

Written by Keith Kohl
Posted March 16, 2018 at 8:35PM

Tesla is scrambling.

BMW and Volkswagen are following suit.

And the “Apple Effect” is swinging into full force.

Just after Apple announced it was in talks to secure its future supply of cobalt, Samsung has said it is pursuing its own negotiations with a mining company in the Democratic Republic of the Congo (DRC).

It’s going to pay a hefty price for it, too.

Now that cobalt is considered a “strategic metal” in the Congo, lawmakers are going to rake in a fortune for the country by taxing these resources.

But I have to ask, are you ready for the real show?

After all, things are going to heat up from here on out...

Goblin Metal Madness

I know you’ve heard of cobalt before.

Truth is, this critically important metal goes by many names. Here at Energy and Capitalwe’ve called it by several of its nicknames, from “goblin metal” to “blue gold.”

But no matter what you call cobalt, it’s become one of the hottest markets in 2018. That shouldn’t be too surprising considering how things have played out over the last few years...

Such as the world’s largest automakers announcing major plans to turn their fleets electric.

Or that Apple needed roughly 6 million ounces of “blue gold” to sell its 170 million iPhones in 2017.

How about the fact that cobalt is a critical component to the batteries used by Tesla? Without this decisive metal, the only Tesla vehicle left will be hurtling towards Mars.

So we can understand why more of the “Apple Effect” is starting to snowball in 2018, right?

Global demand for cobalt is expected to increase 10% from 2018 to 2022, driven by the need for lithium-ion batteries.

In fact, more than half of cobalt demand will be from the battery sector by next year.

Which makes the scramble for supply that much more important.

Think about it...

When the choice is to either secure your cobalt supply NOW or be left out in the cold later, it’s clear that the great cobalt race has begun.

Ah, but here’s the rub, dear reader...

You see, the cobalt story is much more than simply growing demand.

If that were the only issue, then I wouldn’t be nearly as bullish as I am for a certain junior miner with one hell of an advantage over the competition... but I’ll get to that in just a second.

Perhaps the most significant part to this story is the supply side of the equation.

Simply finding the cobalt you need is becoming much harder in this tightening market.

And as you know, there are some very serious problems with where the world is getting its cobalt supply.

Consider it the blood metal curse...

You see, roughly two-thirds of the world’s mined cobalt production comes from the DRC.

When you consider the atrocious working conditions associated with the DRC’s mining industry, however, things get even dicier for companies like Samsung, Tesla, and Apple.

The real question is whether or not these companies will find a better, more ethical source of cobalt.

Well, they might have done just that.

Dig, Baby, Dig: A Billion-Dollar Solution to the Cobalt Crisis

Calling this a race would be a gross understatement.

In North America, the rush to get cobalt projects up and running is hitting a feverish pitch.

This week, we learned that First Cobalt Corp. was executing a friendly takeover of U.S. Cobalt. The move gives First Cobalt, which is developing its own cobalt projects in Canada, some exposure to exploration properties in Idaho.

I told you last week that there’s a guaranteed winner in the cobalt crisis.

And the secret to one junior miner’s success lies in the billion-dollar “blue gold” mine that is not only in control of an advanced-stage project right now, but is also still trading under the investment herd’s radar.

My readers and I have been taking full advantage of this in my Pure Energy Trader and have had the pleasure of watching its project develop at full speed.

But here’s the key part to all of this...

The cobalt market is going to be even hotter in 2018 than it was last year, and it’s simply due to the fact that people are only now starting to realize just how critical finding a new supply outside the Congo is right now.

That’s where this company comes into play.

And the best part is that it’s still not too late for individual investors like us.

I urge you to take a few minutes out of your day and check out all of the details for yourself right here.

Until next time,

Keith Kohl Signature

Keith Kohl

follow basic@KeithKohl1 on Twitter

A true insider in the energy markets, Keith is one of few financial reporters to have visited the Alberta oil sands. His research has helped thousands of investors capitalize from the rapidly changing face of energy. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital as well as Investment Director of Angel Publishing's Energy Investor. For years, Keith has been providing in-depth coverage of the Bakken, the Haynesville Shale, and the Marcellus natural gas formations — all ahead of the mainstream media. For more on Keith, go to his editor's page.

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