In an April 23 research note, Eric Zaunscherb, an analyst with Canaccord Genuity, reported that eCobalt Solutions Inc. (ECS:TSX;ECSIF:OTCQX;FRA:FCO) provided a progress update on its advanced-stage Idaho cobalt project, currently in the preconstruction phase.
Numerous efforts in that regard have begun and are underway. Concerning the water treatment plant, contracts were awarded for its construction, Zaunscherb indicated, and components of the plant are being delivered. In general, contracts were given for construction of infrastructure, earthworks and concrete. The advanced roaster is being design engineered based on pilot tests. Key staff positions, such as mine manager, superintendents and metallurgists, continue being filled.
Construction should move into full swing this summer, Zaunscherb noted. Before that, however, in Q2/18, eCobalt is expected to release its optimized feasibility study on Idaho.
What Canaccord anticipates seeing in that study is "production ramping up from 2020 and achieving steady state of about 900 tons per annum cobalt in cobalt sulphate at a cash cost of US$15 per pound the following year," Zaunscherb outlined. This cost compares to the current $44 cobalt price, according to the Metal Bulletin.
ECobalt stock is currently trading at CA$1.40 per share. However, a rerating should occur, Zaunscherb opined, once the company completes the feasibility study and obtains financing for development. On eCobalt, Canaccord Genuity has a CA$1.80 price target and a Speculative Buy rating.
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1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
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Disclosures from Canaccord Genuity, eCobalt Solutions Inc., Flash Update, Apr. 23, 2018
Analyst Certification: Each authoring analyst of Canaccord Genuity whose name appears on the front page of this research hereby certifies that (i) the recommendations and opinions expressed in this research accurately reflect the authoring analyst’s personal, independent and objective views about any and all of the designated investments or relevant issuers discussed herein that are within such authoring analyst’s coverage universe and (ii) no part of the authoring analyst’s compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by the authoring analyst in the research.
Analysts employed outside the US are not registered as research analysts with FINRA. These analysts may not be associated persons of Canaccord Genuity Inc. and therefore may not be subject to the FINRA Rule 2241 and NYSE Rule 472 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.
Required Company-Specific Disclosures (as of date of this publication):
eCobalt Solutions Inc. currently is, or in the past 12 months was, a client of Canaccord Genuity or its affiliated companies. During this period, Canaccord Genuity or its affiliated companies provided investment banking services to eCobalt Solutions Inc.
In the past 12 months, Canaccord Genuity or its affiliated companies have received compensation for Investment Banking services from eCobalt Solutions Inc.
Canaccord Genuity or one or more of its affiliated companies intend to seek or expect to receive compensation for Investment Banking services from eCobalt Solutions Inc. in the next three months.
Disclosures are available here.
