On May 22, 2018 Cobalt 27 Capital Corp. (TSX: KBLT) announced a transformational streaming deal. Prior to this deal, KBLT was strictly a hoarder of physical cobalt. The company always had the ambition to invest in cobalt streams. However, cobalt is a rare commodity and most of its production, approximately 65%, comes from the Democratic Republic Congo (DRC). This is not a great jurisdiction for miners. With the Electric Vehicle (EV) revolution, demand for cobalt has risen to the point where there is a cobalt shortage. The majority (99%) of cobalt is mined as a by-product. This makes it difficult for capital to be allocated purely into cobalt. Hence why KBLT is so interesting as a long-term investment.
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Issue 21 – Cobalt 27 is Streaming Away
On May 22, 2018 Cobalt 27 Capital Corp. (TSX: KBLT) announced a transformational streaming deal. Prior to this deal, KBLT was strictly a hoarder of physical cobalt. The company always had the ambition to invest in cobalt streams. However, cobalt is a rare commodity and most of its production, approximately 65%, comes from the Democratic Republic Congo (DRC). This is not a great jurisdiction for miners. With the Electric Vehicle (EV) revolution, demand for cobalt has risen to the point where there is a cobalt shortage. The majority (99%) of cobalt is mined as a by-product. This makes it difficult for capital to be allocated purely into cobalt. Hence why KBLT is so interesting as a long-term investment.
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