Vale Enters Into Cobalt Streaming Deals with Wheaton Precious Metals, Cobalt 27
Vale S.A. (NYSE: VALE) has agreedto streaming deals for cobalt from its Voisey's Bay nickel mine in order tofinance an expansion. News reports describe this as the world's biggest cobalt stream ever. Streaming companiesupfront money in exchange for a share of future production. WheatonPrecious Metals (NYSE, TSX: WPM) and Cobalt 27 Capital Corp. will provide Valea combined $690 million in funding for the combined purchase of cobalt equal to75% of Voisey's Bay cobalt production effective Jan. 1, 2021. Wheaton says itwill pay Vale upfront $390 million upon closing. In addition, Wheaton will makeongoing payments of 18% of the Metal Bulletin market price per cobalt pounddelivered. Wheaton will be entitled to receive from Vale 42.4% of the Voisey'sBay mine cobalt production until the delivery of 31 million pounds of cobalt,then 21.2% of cobalt production thereafter for the life of mine. Wheaton saysVoisey's Bay is one of the lowest-cost, highest-margin nickel mines globally,ranking in the bottom half of the nickel cost curve.
By Allen SykoraFor Kitco News
Follow @AllenSykora
asykora@kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.