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:

Andrew Mikitchook, BMO Capital Markets (1/9/18)
"We have initiated coverage on Cobalt 27 Capital Corp. with an Outperform rating. The company offers a unique, pure play cobalt investment opportunity with a scarcity of cobalt-leveraged alternatives; core assets consist of warehoused cobalt metal, and the company intends to complete cobalt streaming agreements with producers."

With electric vehicle demand booming, cobalt is a hot commodity, rising about 130% in 2017. This TSX.V-listed company offers one of the few ways to gain pure-play exposure.
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Anoop Prihar, GMP Securities (1/3/18)
"On Dec. 20, Cobalt 27 Capital Corp. closed a bought deal equity financing by issuing 8.1M shares at $10.50/share for gross proceeds of $85M which will be used to fund the purchase of additional physical cobalt. The company has commitments in place to purchase 822 t cobalt at a price of $36.28/lb, increasing its total inventory to 2,982.9 t."

Jonathan Guy, Numis (12/28/17)
"Cobalt 27 Capital Corp. has completed the purchase of 800 t high-grade cobalt, taking its total holding to 2,982.9 t, 2,270.3 t high grade and 712.6 t standard grade; the company has also completed the CA$97.8M equity raise to fund the purchase and provide general working capital. We retain a Buy recommendation and increase our target price to CA$15 from CA$11 driven by higher long-term cobalt pricing assumptions."

Michael Doumet, Scotiabank (12/19/17)
"We are off restriction on Cobalt 27 Capital Corp. following its purchase of 822 Mt cobalt and concurrent $100M equity offering (9.5M shares), including the exercise of the entire overallotment option. . .we see continued upside in the shares from cobalt price appreciation and value accretive transactions."

Colin Healey, Haywood Securities (12/19/17)
"Cobalt 27 Capital Corp. raised a total of $80.5M in net proceeds (prior to overallotment) to fund the purchase of ~800 t physical cobalt and will issue an additional $2.2M in shares for another 22 t. . .we believe the deal puts the company in a strategically attractive position in the cobalt market and sets the stage for a streaming transaction. We have raised our target to $14/share based on our expectations for a deal materializing within Q1/18."

MacMurray Whale, Cormark Securities (12/19/17)
"We are initiating coverage on Cobalt 27 Capital Corp. with a Buy recommendation and $13.00 target. As a holder of almost 3,000 t of physical cobalt metal, KBLT brings immediate exposure to high cobalt prices and expectations for further price increases owing to rising demand from the battery space. Further upside exists through its ownership of net smelter returns (NSRs). Cobalt 27 is actively examining streaming interests and direct investments in cobalt operations and/or development opportunities, which will drive a higher level of exposure for investors."

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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Numis initiated coverage with a Buy rating and target price of CA$11 on this "dedicated cobalt investment vehicle."
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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
Andrew Mikitchook, Analyst – M Partners
Anoop Prihar, Director, Special Situations Analyst – GMP Securities
David Talbot, Vice President, Senior Analyst – Eight Capital
MacMurray Whale, Analyst – Cormark Securities
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