the oregon group logo

Investment Insights. Stay Ahead.

When the WSJ Visited our Rotterdam Storage Facilities

Recently, we hosted a tour of Cobalt 27’s Rotterdam warehouse – one of our three storage facilities that, together, host a total of 3,000 tonnes of cobalt. 

The Port of Rotterdam is the largest in Europe and one of the largest in the World.  Like our Antwerp and Baltimore locations, our facility there is LME-certified. The LME (London Metal Exchange) is the world centre for the trading of industrial metals and most non-ferrous metal futures business is transacted via the LME. To give you a sense of scale, in 2017 this equated to $12.7 trillion notional, 3.5 billion tonnes and over 157 million lots. Becoming certified is no easy feat but, once done, it de-risks the business and it’s one of our many advantages.

Ever wanted to know what millions of dollars of physical cobalt looks like? Check out the photo to the right. As Scott Patterson from the Wall Street Journal mentioned in his article after the visit, cobalt prices have risen 270% on the London Metal Exchange to about $80,000 a metric ton since early 2016. It really brings it home when you realize just how critical this metal is, to the continued growth of the lithium ion battery sector, which in turn is fueling a new industrial revolution.

Now technically the visit was for senior representatives from a number of financial institutions.  After all, as industry demand for cobalt has increased, so too has interest in Cobalt 27. However, we also invited a few members of the financial Media along and the subsequent WSJ article is a good reminder of why our company has performed so well in such a short time.  If you don’t have a subscription, let me throw in a couple of lines that stood out:

“Booming demand for cellphone and electric-vehicle batteries has created a once-unthinkable metals-industry player: the pure cobalt company.”

“Cobalt is now valued for its ability to withstand the intense heat generated by lithium-ion batteries.”

“Cobalt 27’s shares have quadrupled since it went public in Toronto in June, giving it a market value of about $370 million.”

“London commodities researcher CRU Group predicts that by 2030, annual demand for cobalt for lithium-ion batteries will be triple the roughly 100,000 metric tons a year produced globally today.”

Together, those quotes highlight the fact that Cobalt 27 combines the best performing asset class on the Toronto Stock Exchange – metals streaming and royalties, with the top performing commodity of 2017.

As demand for EVs and lithium-ion batteries continues to grow, so too does demand for Cobalt and with it, our ability to take advantage of additional growth in the cobalt sector. Increased demand also makes it easier for us to execute on our business plan. After all, it wasn’t just the journalists who were impressed by the visit to Rotterdam.

Disclaimer

The Oregon Group has full editorial control over all content published on this website and the author has not been compensated or remunerated by any person to provide content for The Oregon Group, and all statements and expressions herein are the sole opinion of The Oregon Group. However, from time to time, The Oregon Group and its directors, officers, partners, employees, authors, or members of their families, as well as persons who are interviewed for articles on this website, may have a long or short position in securities or commodities mentioned and may make purchases and/or sales of those securities or commodities in the open market or otherwise. By accessing and using this website, readers are cautioned to assume that each of the foregoing persons may have a financial interest in all companies and sectors mentioned on this website. Any projections, market outlooks or estimates herein are forward looking statements and are inherently unreliable., and any such statements are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur.  Other events that were not taken into account may occur and may significantly affect the returns or performance of the securities or commodities discussed herein. The information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and The Oregon Group undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional material. The information provided on this website is for informational purposes only and is not, directly or indirectly, an offer, solicitation of an offer and/or a recommendation to buy or sell any security or commodity, and the information provided on this website should not be construed as any advice or an opinion as to the price at which the securities of any company or commodity may trade at any time. The Oregon Group is a publisher of financial information, not an investment advisor.  We do not provide personalized or individualized investment advice or information that is tailored to the needs of any particular recipient, and the information provided on this website is not and should not be construed as personal, financial, investment or professional advice. Readers are cautioned to always do their own research and review of publicly available information and to consult their professional and registered advisors before purchasing or selling any securities or commodities and should not rely on the information contained herein. Neither The Oregon Group nor any of its affiliates accepts any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained herein. By using the Site or any affiliated social media account, you are indicating your consent and agreement to this disclaimer and our terms of use. Unauthorized reproduction of this newsletter or its contents by photocopy, facsimile or any other means is illegal and punishable by law.

Share this article

about the author

Anthony Milewski

Anthony Milewski

Anthony Milewski has spent his entire career in the capital markets, including as company CEO, board director, advisor, founder and investor, with a focus on the energy transition and commodities.

Tags

Subscribe for Investment Insights. Stay Ahead.

Subscribe and get today’s market and industry trends delivered to you in real-time.

[mepr-membership-registration-form id="4595"]

SUBSCRIBE FOR INVESTMENT INSIGHTS

Welcome to The Oregon Group, an investment research team founded by independent capital markets experts, Anthony Milewski and Justin Cochrane.

Anthony, Justin and their team, are now sharing their boardroom expertise, institutional experience and analysis from our global network, to help you profit and hedge your investment exposure during this time of unmissable opportunity.

Subscribe and get today’s market and industry trends delivered to you in real-time.

[mepr-membership-registration-form id="4595"]