TSXV:FCC Good fundamentals and price levels to invest

6 Mei 2020

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
  

16 Mei 2020

Catatan

Could be a MA50 and breakout retest.

Let's see if it holds.