The Needle on 3 Cobalt stocks- ASN, AML, AXE

  • Apr 07, 2019 AEST
  • Team Kalkine
The Needle on 3 Cobalt stocks- ASN, AML, AXE
Cobalt prices are stagnant, with Cobalt Futures (CBDc1) trading near flat around $30,000.00 mark after initially dropping from the level of $35000.00 (Day’s high on 7th March 2019). However, cobalt prices are expected by the market participants to take a U-turn as demand from electric vehicle segment is getting build, which in turn, is expected to support the cobalt prices over a long run. China is burning extensive capital in the electric vehicle segment, and the country is taking strong measure to curb the environmental pollution in line with Euro 6 emission standards. China declared lucrative incentives on the electric vehicle segment to promote and instigate the interest of automotive industry, which in turn, marked a rise of electric vehicle trend, and the automotive industry is currently working on the respective segment to tap the future market. Cobalt is used in the anode construction of electricity storage battery, which is used in the electric vehicle and is therefore expected to mark a demand surge once the electric segment picks up along with Nickel, Lithium and other electricity storage base metals. With cobalt expected to shine, Australian miners are getting ready to leap forward with it. The high production capacity of miners along with quality grades can help those miners to position themselves better to take advantage of high cobalt prices, as and when it emerges in the global market. Anson Resources Limited (ASX: ASN) is focusing on developing a project that could supply the lithium-ion battery industry with the required minerals and chemical products. The company holds an asset in the Paradox Basin in Grand County, Utah, which covers 11,373 hectares of area and consists of 1,317 placer claims, out of which the company holds a 50% interest in 89 claims, in which the company also holds an option to acquire the remaining interest. Historically in the 1960s, various oil wells were discovered and come across over-pressurised brines on the Clastic Zone 31. The company recently tested and identified two holes which resulted in a lithium value of seventeen hundred ppm and five hundred ppm respectively, in the closer proximity to Robert’s Rupture geological formation, which runs through the company’s project claims. As the flagship project of the company is a high prospect, the company aims to explore 85 to 170 million tonnes of brines with a grade of 100 to 500pp m of lithium from the Clastic Zone 31 only. Apart from this the company holds 100% interest in the Hooley Wells Nickel-Cobalt Laterite Project and Ajana Graphite The Company recently claimed 396 lodes in Yellow Cat Mining District. The share of the company closed at A$0.069 (as on 5th April 2019), down by 5.479 percent as compared to its previous close with an average volume of 662,645. Aeon Metals Limited (ASX: AML) the Australia based mineral explorer holds extensive exploration tenements at Mt Isa mineral province, Queensland. The company owns the tenements of Cobalt, Molybdenum, Zinc, Lead, Gold, and Silver. The flagship project of the company is Walford Creek, which is approx. 350km northwest of Mount Isa. Aeon Completed second drilling round on 29th October 2017 and received significant results which include: Location identified as WFDD263 resulted in 25m @ 2.20% Cu, 0.16% Co and 18gt Ag from 169m, including; 10m @ 4.63% Cu, 0.14% Co and 22gt Ag from 184m Location identified as WFDD264 resulted in 31m @ 1.10% Cu, 0.21% Co and 33gt Ag from 186m; and 22m @ 1.26% Cu, 0.25% Co and 36gt Ag from 189m. Location identified as WFDD265 resulted in 38m @ 1.07% Cu, 0.15% Co and 26gt Ag from 226m, including 20m @ 1.41% Cu, 0.16% Co and 25gpt Ag from 244m. Location identified as WFDD266 resulted in 36m @ 1.26% Cu, 0.20% Co and 43gt Ag from 275m, including 20m @ 1.86% Cu, 0.30% Co and 64gpt Ag from 288m. Location identified as WFDD267 resulted in 10m @ 1.45% Cu, 0.13% Co, 1.43% Zn and28g/t Ag from 196m. Location identified as WFDD268 resulted in 22m @ 2.00% Cu, 0.31% Co and37g/t Ag from 201m. Location identified as WFDD269 resulted in 13m @ 1.56% Cu, 0.30% Co and 28g/t Ag from 98m. Location identified as WFDD270 resulted in 45m @ 2.21% Cu, 0.32% Co and43g/t Ag from 185m, including 30m @ 2.99% Cu, 0.44% Co and 50g/t Ag from 188m. As a result of significant outcomes, the company upgraded its Mineral Resources, which places the company in a position to take advantage of high commodity price scenario. The share of the company closed at A$0.255 (as on 5th April 2019), and remained unchanged as compared to its previous close with an average volume of 217,530. Archer Exploration Limited (ASX: AXE) a multi-mineral Australian explorer. The company holds 100% interest in four cobalt tenements in Ketchowla, North Broken Hill, Yarcowie and Polinga. The company collected Rock Chips from the Yarcowie Project and identified the high grade of cobalt ranging from 3,600ppm to 9,400ppm. The significant results prompted the company to further take the geological mapping on the prospect. The company has mapped the cobalt mineralisation at the project site over a length of 1km and a width of approx. 500 metres. Apart from the Yarcowie the company also hosts various other cobalt prospects such as Himalaya, Golden King West, Purnamoota, Salty Hills, etc., which gives the company an edge to take advantage of high battery minerals demand in the electric vehicle industry. Archer is a multi-mineral explorer, and it also explores and hosts prospects for copper, manganese, graphite, etc. The company successfully produced spherical graphite. The share of the company closed at A$0.075 (as on 5th April 2019), up by 1.351% as compared to its previous close with an average volume of 134,585. With high-quality prospect and Mineral Resources, these companies are placing themselves in a position to take advantage of high commodity price scenario in the battery segment market.


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