- Indonesian Maritime Minister, Luhut Pandjaitan stated that Indonesia will “become the main player in lithium batteries” and that it will “control the world market”, as developers begin construction of $4 billion EV battery project on Sulawesi, backed by consortium of investors from China, Japan and South Korea.
- Shares of Pacific Rim Cobalt Corp (OTCQB: PCRCF) are gaining momentum as investors set sights on Indonesia as potentially the world’s largest supplier of vital battery metals.
- Pacific Rim Cobalt Corp is developing a strategic cobalt and nickel asset in “elephant country” while billions of dollars are pouring into Indonesia in an effort to lock up supply before prices skyrocket.
- Pacific Rim Cobalt Corp market capitalization at $6.6 million, an attractive entry for investors seeking exposure to the next wave of demand in battery metals.
- Pacific Rim Cobalt Corp (OTCQB: PCRCF) has established an early presence in Indonesia; a strategically-located, ethical jurisdiction within the geographic sphere of China, the dominant Electric Vehicles market player on the planet.
- Capital Economics expects cobalt prices to reach US$70,000 per tonne by mid-2019 and US$80,000 by the end of 2020.
by the numbers
in a supply deficit expected to increase over the next few years
estimated % of lithium-ion batteries containing cobalt by 2020.
% of cobalt mined in the Democratic Republic of Congo, notorious for political corruption and human rights abuses
led by china, asia represents 90% of lithium-ion battery megafactory capacity
energy storage systems forecast CAGR to 2020
Pacific Rim Cobalt Corp. (OTCQB: PCRCF, CSE: BOLT) is a publicly traded battery metals exploration company whose flagship asset is a 100% controlled 5,000 hectare cobalt and nickel mineral property, located in proximity to the world's largest battery market - China.
Led by a world class capital markets, geological and marketing team, and building on its partnership with Beijing Easpring, a leading specialized supplier of cathode material for lithium ion batteries, the Company is well positioned to benefit from the burgeoning battery storage sector in Asia.
The Cyclops cobalt project has over 850 historical drill holes, numerous test-pits, as well as production and environmental permits in place. With a historic estimate (not 43-101 compliant) of 37MM tonnes of 0.11% cobalt and 1.31% nickel mineralization, Cyclops features excellent infrastructure for year-round development activities.
"We are excited and optimistic about the unique possibility of developing this project into an asset that will add shareholder value and position the company to play a future role in the battery metals supply chain. It's going to be a busy year ahead, and we look forward to getting the drills turning and building value." - Ranjeet Sundher, CEO
Backed by early stage investors with proven record of creating shareholder value in natural resource companies.
Significant, shallow mineralization at project site with a historical (currently non-compliant to 43-101 standards) estimate of 37Mt @ 0.11% Co and 1.31%Ni at 0.8% Ni cut-off grade.
Potential for expansion as mineralization is open at depth and on-strike.
Preliminary Offtake Agreement signed with China’s top battery materials supplier, Beijing Easpring
Attractive valuation for new investors seeking exposure to a booming battery metals sector. Market valuation was recently as high as $60 million, currently only $6.4 million with a full slate of news & activity planned for 2019.
World class capital markets and marketing team, with over 60 years of combined experience in the mining sector in Indonesia.
Market capitalization is much lower than its pre-production and late-stage exploration peer group and there remains potential for upside valuation adjustment.
Project development in 2019 will also add value to their flagship Cyclops cobalt and nickel asset as its advanced toward being a part of the Electric Vehicle battery value chain.
about pacific rim cobalt corp.
Global demand for renewable power and electric vehicles is fueling a massive shift from traditional energy supply chain economics, and the most widely used power source for portable applications are cobalt-reliant lithium-ion batteries. Cobalt faces significant headwinds in supply disruption, causing governments of industrialized nations to deem it a 'critical metal'.
Pacific Rim Cobalt Corp's asset, known as Cyclops, encompasses over 5,000 hectares in Papua Province, Indonesia, and has a historical (currently non-compliant to 43-101 standards) estimate of 37 million tonnes of mineralization grading 0.11% cobalt and 1.31% nickel - a lot of value waiting to be unlocked. Certainly an enticing asset for Chinese battery makers who are currently on the hunt right in Indonesia for secure supplies of these critical metals.
Even more interesting is Pacific Rim's recently announced partnership with China's largest EV battery maker, Beijing Easpring. Attracting this level of interest certainly lends credence to the project's potential and quality.
With shares trading in Canada (BOLT) and the U.S. (PCRCF) the company currently has a market capitalization of approximately $6 million. The upside lies in management's ability to develop the project and make it an attractive proposition to giant Chinese battery manufacturers, who are actively targeting Indonesia for it's cobalt potential. Further upside exists in the fact that only a portion of this large project has been explored. One can imagine the potential as a very capable team of veterans moves this high quality asset forward.
catalysts for upside re-valuation
Shares of BOLT (CSE) / PCRCF (OTCQB) are trading at the low end of their 52-week range, offering an attractive entry point for new investors. With 2019 shaping up to be a very active year for Pacific Rim Cobalt Corp, here are some of the key developments investors can expect:
- The Company has recently entered into a partnership with China's largest EV battery maker (Beijing Easpring) with the express purpose of working with and investing in BOLT in order to gain exposure to Indonesia and have access to production of nickel and cobalt products for their battery manufacturing operations. We expect further news on this front as this valuable relationship develops.
- 2019 promises to be a very active year of exploration, project advancement and mineral processing optimization, providing investors with regular news flow on many fronts.
- Planned construction, and scaling up, of pilot plant in early to mid 2019.
- Frequent visits to China and Japan resulting in strong interest from downstream users and commodity suppliers to EV space.
- The Company has an ongoing property evaluation program, and are looking to add advanced battery metals projects to their asset base.
why invest in cobalt?
Cobalt has recently been marked as a 'critical' or 'strategic' metal by industrial nations around the world, due to it's importance in the battery market supply chain.
In fact, Erik Prince, notoriously known for founding Blackwater Inc, has just announced the launch of a $500 million fund focused on electric car battery metals, particularly cobalt.
“When I see the R&D budgets of all the major automakers ploughing huge money into hybrid or electric vehicles, I believe the demand curve for the unique minerals that make up an electric car and battery technology will be enormously high over the coming years,” Mr Prince said.
“The majority of the cobalt is heading straight to China. Their global hold is huge.”
– CRU 2016
“The US and China have identified cobalt as a strategic metal and are stockpiling cobalt”
- Indonesia is one of the world's largest producers of nickel.
- As cobalt is a by-product of nickel mining, modern mineral processing options are just starting to unlock the massive potential this country holds for economic cobalt resources.
- Indonesia is also strategically located in proximity to the world's largest battery market - China - giving it a distinct advantage over cobalt explorers located in the West.
- Indonesia has begun drawing billions of dollars in investment from multi-national mining and technology firms intent on securing future production rights.
Pacific Rim Cobalt Corp. recognized this opportunity early and seized the moment by acquiring a large, advanced cobalt - nickel prospect - located on tide water, with direct shipping routes to China. The Company is in the process of systematically unlocking the potentially significant value this mineralized asset may hold.
Pacific Rim Cobalt Corp wants to join the ranks of multinational mining companies who are supplying China with a conflict-free flow of cobalt and nickel.
With an extensive development program ongoing on the Cyclops project, the Company has a full slate of activity planned for 2019.
Infrastructure to and around the project is excellent, allowing for year round access. It’s a 45 minute drive on sealed roads from the airport and in close proximity to a city with skilled labor (Jayapura, pop. 350,000).
Cyclops is adjacent to deep tidewater, opening up the potential for easy port access and direct shipping routes to Asia.
Location, infrastructure, mineral grade and market dynamics - Management has ensured all the critical boxes have been checked when reviewing and securing this impressive project.
A greener future is unavoidable, and the battery storage needs around the world will ensure demand for cobalt remain strong, giving investors an opportunity to participate, and potentially profit from, this once in a generation paradigm shift.
Please visit Pacific Rim Cobalt Corp's website for more information on this emerging investment opportunity.
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