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:

Rupert Merer, an analyst with the National Bank of Canada, explained the thesis for investing in this company, noting the supply/demand dynamic with regard to batteries for electric cars could drive value.
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Rupert Merer, National Bank of Canada (2/15/18)
"We are initiating coverage on KBLT with an Outperform rating and a 12-month target of CA$14.25/share. . .we believe that the company could execute on a larger streaming deal in the next 12 months."

Experts discussed the reasons this company merits an increased target price: a rising cobalt price, the market's openness to an even higher one and the firm's strengthening its balance sheet to likely acquire more of the physical metal and, ultimately, engage in a streaming deal.
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David Talbot, Eight Capital (2/1/18)
"We increase our share price target on Cobalt 27 Capital Corp. to CA$15.90 from CA$10.90/share after applying higher cobalt prices, recent equity raise and physical cobalt purchase. . .management has a mandate to pursue income stream or royalty arrangements with advanced developers and producers to generate attractive returns while limiting risk."

Eric Zaunscherb, Canaccord Genuity (1/31/18)
"We are raising our target price for Cobalt 27 Capital Corp. to CA$14 from CA$10 while maintaining our Speculative Buy rating. On the back of stronger-than-expected cobalt pricing and the market's willingness to anticipate even higher pricing, and the potential for the addition of streaming deals to the company's portfolio, Cobalt 27's share price has briskly climbed through our price target and bull case scenario established at initiation of coverage in August 2017."

Scott Patterson, The Wall Street Journal (1/29/18)
"Cobalt 27 Capital Corp. currently does nothing but buy and hold cobalt; it keeps 3 Kt cobalt distributed in warehouses in Antwerp, Baltimore and Rotterdam, one of the world's largest stockpiles of the metal. The company's shares have quadrupled since it went public in Toronto in June, giving it a market value of about $370M."

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."

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
Rupert Merer – National Bank Financial
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