Cobalt 27 Capital Corp.

Cobalt 27 Capital Corp. one of the few companies able to provide investors with pure-play exposure to cobalt – a key element in technologies that are experiencing explosive growth, including electric vehicle and energy storage applications. The company has a triple-pronged business model that comprises holding physical cobalt, acquiring streams and royalties and acquiring interests in mineral properties. Cobalt 27's strategy minimizes the potentially very high risks associated with investing in cobalt while maximizing exposure to the upside. The company is run by a highly-experienced management team and Board of Directors and has an Advisory Board with deep ties to the global EV and energy storage markets.

Expert Comments:

Management Q&A: View From the Top
Forecasts of an electric vehicle boom are behind skyrocketing demand for cobalt, a major component in batteries. In this interview with The Energy Report, Anthony Milewski, CEO of Cobalt 27 Capital Corp., discusses the company's unique position as a two-pronged pure-play on cobalt.
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Anoop Prihar, an analyst with GMP Securities, explained the investment thesis for this metals corporation that began trading during the summer.
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A "large appetite" for cobalt, in demand for use in lithium ion batteries powering electric vehicles, contributed to a decision to initiate coverage on this firm.
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David Talbot, Eight Capital (9/26/17)
"We initiate coverage of Cobalt 27 Capital Corp. with a BUY and a C$10.90 share price target. . .Cobalt 27 offers investors the first pure play vehicle to gain direct exposure to cobalt. . .holding physical cobalt should serve as an excellent proxy for market sentiment due to its strong correlation to cobalt pricing. . .management has indicated that it plans to pursue a growth strategy through potential additions to its physical cobalt holdings. . .while its eight royalties are small and far from production, these royalties speak more to management's ability to transact. We expect KBLT to engage more advanced developers and producers with streams or royalties."

SmallCapPower.com (9/20/17)
"Cobalt 27 Capital Corp. is one of the four Canadian cobalt stocks with the greatest monthly momentum. . .driven by increasing demand for batteries used in electronic vehicles and supply shortages, global cobalt prices continue to surge and currently trade at multi-year highs of $28/lb. . .annual demand for cobalt is projected to exceed 120,000 tonnes by 2020, up 30% from the 93,950 tonnes consumed in 2016. To take advantage of this secular bullish trend in cobalt, investors could invest in miners that are focused on cobalt. . .Cobalt 27 Capital Corp. offers pure-play exposure to cobalt."

Numis initiated coverage with a Buy rating and target price of CA$11 on this "dedicated cobalt investment vehicle."
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Eric Zaunscherb, Canaccord Genuity (8/21/17)
"We are initiating coverage of Cobalt 27 Capital Corp. . .with the advancement of lithium-ion battery technology, cobalt has become a key component of battery chemistry. It is vital for stable battery chemistry in positively charged cathodes and makes up 9% to 14% by weight of the material used in battery construction. Cobalt prices have risen 193% since December 2015 on accelerating electric vehicle and grid energy storage applications, but we expect a cobalt demand CAGR of 14% and ongoing supply deficits to 2025. . .Cobalt 27 is a hybrid investment vehicle engineered to provide the only pure investment quality cobalt exposure."

Colin Healey, Haywood Securities (8/9/17)
"We are initiating coverage on Cobalt 27 Capital Corp., a unique vehicle that offers pure-play exposure to physical cobalt commodity price speculation and secular trends in the development of battery technologies to support the global effort to transition to a low-carbon economy. . . Cobalt 27 has acquired seven net smelter return royalties on exploration-stage properties focused on cobalt. This model allows for an asymmetric payoff profile, with limited downside from the typical risks associated with mining operations. . .we are initiating coverage with a BUY rating and $11.50 price target."

Carey MacRury, TD Securities (7/28/17)
"Cobalt 27 Capital Corp. is a new company offering investors pure-play exposure to physical cobalt, a key element in most lithium-ion batteries. . .the company provides investors with one of the few ways globally to get pure-play exposure to cobalt without taking on the exploration, development or operating risk associated with cobalt mines. . .management aims to accretively grow its cobalt exposure through the acquisition of additional physical cobalt, streams, royalties, and potentially direct interests in mineral properties containing cobalt. . .the key to future cobalt demand is the adoption of electric vehicles (EV). . .we also expect countries to continue to subsidize EV purchases in order to meet Paris Accord commitments."

Anoop Prihar, GMP Securities (7/19/17)
"Cobalt 27 Capital Corp. is a newly listed public company that offers direct leverage to cobalt price appreciation. The company currently owns 2,158.8 tonnes of physical cobalt and a portfolio of cobalt royalties. . .future demand will be driven by robust growth in EV sales which is a function of falling battery costs, supportive government policies, the transition to cobalt based EV batteries. . .the production of refined metal over our forecast period is expected to increase from 93.5K tonnes to 121.6K tonnes, which suggests the market will remain in deficit. . .we are initiating coverage with a BUY rating and $12 target price."

More Expert Comments

Experts Following This Company

Michael Doumet, Equity Analyst – Scotiabank, Scotia Capital Inc.
Colin Healey, Analyst – Haywood Securities
Carey MacRury, Equity Analyst – TD Securities
Anoop Prihar, Director, Special Situations Analyst – GMP Securities
David Talbot, Vice President, Senior Analyst – Eight Capital
Eric Zaunscherb, Analyst – Canaccord Genuity

The information provided above is from analysts, newsletters, the company and other contributors.

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Investing Highlights
One of the only companies providing pure-play exposure to cobalt
Business model minimizes the risks in cobalt investments while maximizing upside
Cobalt 27 shares are underpinned by its substantial holdings of physical cobalt