Cobalt and copper with opportunities
In 2019, the cobalt price was more volatile. Cobalt is a key element in lithium-ion batteries. Prices averaged around USD 16 per pound. As a reminder: in 2018, the pound of cobalt cost more than 40 US dollars.
In the second half of 2019, sales of electric vehicles in China declined somewhat. But this decline in the Chinese electric vehicle market will, according to the experts, lead to a strong recovery in 2020. It is therefore expected that there is a backlog demand. For example, from market expert Roskill. Cobalt is not only found in batteries, but also in nickel alloys, tools, magnets and catalysts. Demand is also expected to increase from these areas.
Cobalt companies like First Cobalt - https://www.commodity-tv.com/play/updates-cobalt-glencore-and-first-cobalt-sign-definitive-agreement/ - should provide the necessary supplies. Together with Glencore, First Cobalt plans to soon produce cobalt in North America at its Iron Creek property. The project contains rich cobalt-copper resources that are of high strategic importance for the domestic cobalt supply.
The price of copper has risen again in recent months. This is a good sign, because "Dr Copper", as copper is also called, is an indicator for the global economy. In January 2020, copper rose to a meanwhile good USD 6,300 per tonne and has thus reached its highest value since April 2019. The largest copper importer is China. Opinions are mixed as to whether copper is in surplus at the end of the year or whether it is in deficit. The supply of copper is currently scarce.
This is positive for copper companies such as Copper Mountain Mining. This company owns 75 percent of the producing Copper Mountain Mine in British Columbia - https://www.commodity-tv.com/play/newsflash-with-skeena-resources-caledonia-mining-copper-mountain-and-millennial-lithium/. Production is to be expanded from the current level of about 90 million pounds of copper output to 116 million pounds of copper annually.
Recent corporate news and press releases from First Cobalt (https://www.resource-capital.ch/en/companies/first-cobalt-corp/) and Copper Mountain Mining (https://www.resource-capital.ch/en/companies/copper-mountain-mining-corp/).
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