Cobalt 27 Makes A Big Move in Their Royalty Portfolio

Palisade Research February 23, 2018 Category: Research

Cobalt 27 (CVE:KBLT, OTCMKTS:CBLLF, FRA:27O) has a very simple strategy – it's to give investors exposure to a booming cobalt market.

Here’s how – the company holds physical cobalt and is acquiring streams, royalties and direct interests in mine properties containing cobalt.

They're storing the physical cobalt in warehouses and are finding great sources of it still in the ground. . .

Cobalt 27's royalty portfolio has taken a backseat to its actual physical supply – especially with headlines like, "Apple scrambling to secure cobalt supplies for their iPhones".

But as physical cobalt all over the world becomes harder to secure, the royalty portfolio will become more valuable.

At the IPO, Cobalt 27 had five royalties:

But yesterday, they added their most impressive royalty yet. . .

They acquired a 1.75% NSR on all future production of all metals from the Dumont nickel-cobalt project.

Why is this so important?

Because Dumont is in the mining-friendly Abitibi region of Quebec, and contains the world’s largest undeveloped, permitted and construction-ready reserves of nickel and cobalt.

The Dumont project has an expected 33-year mine life and potential for future expansion.

The project has reserves of 1.18 billion tonnes of ore containing 3.15 million tonnes – 6.9 billion pounds – of nickel and 126,000 tonnes – 278 million pounds – of cobalt.

The royalty covers all metals produced from the Dumont project – including nickel, cobalt, platinum and palladium.

All these metals have exciting futures.

This is what we like so much about royalties – not only does it offer exposure to cobalt, but it also gives investors risk free exposure to the upside.

That means as Cobalt and the other metal prices rise, the royalty payments coming into Cobalt 27 will increase - making shareholders happy.