Long

TSXV:FCC Good fundamentals and price levels to invest

Updated

On May 4th TSXV:FCC has published the results of an independent positive feasibility study.

First production may begin by end 2020 or Q1 2021 or let it be Q2 2021
Needed invest for refinery restart is 56M USD (in worst case scenario 40M already agreed with their partner Glencore, but it would be better to distribute this dependency across other/multiple investors or state funds)
Calculated return of invest is around 1.8 years (= very good) if Cobalt price stays around 25 USD but the demand may and I think it will rise since the Cobalt demand is projected to rise 3600% in the next 20 years
The purchased refinery is not only already built but as well permitted (this step would take years)
~70% of the global Cobalt ore comes from the DR Congo (where mainly Glencore is present)
~80% of the globally refined Cobalt comes from China
North America could have a local player responsible for 5% of the globally refined Cobalt
Not mentioning their acquired Cobalt mines eg. in Idaho etc.
The current share price to book ratio is around 65%

I guess TSXV:FCC is currently one of the - if not the - best bets in Cobalt / EV sector.

I will steadily grow this position in my portfolio especially at such low level prices!

Technically we broke out of the falling channel and crossed the 50 week average.
TD monthly is on a 2
TD weekly 5 => 4 more weeks uptrend
TD weekly countdown already finished 13
Lowest price probably already in and the currently beginning uptrend can take us to 0,40 CAD within the next months

Note

Could be a MA50 and breakout retest.

Let's see if it holds.

dimisus

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.