Northern Cobalt’s share price surges 11% after stake in Vanadium project

Northern Cobalt Ltd’s [ASX:N27] share price is trading 11.11% higher, following news that that it has acquired 100% of a Vanadium project based in Southern Alaska, compounding an already good week in share price performance.

Northern Cobalt has 48 mineral claims staked in the vanadium project. Which is likely to have a very low-cost acquisition and large scale potential.

That type of potential is exciting for Northern cobalt. The company already deals with the acquisition, exploration and development of battery and strategic metals such as cobalt, lithium and REE. Naturally, its vanadium project carries over exposure for the metal in vanadium flow batteries.

Which is a key player for future global economic growth.

That’s why resource analyst Jason Stevenson believes the most lucrative stocks can be found in this sector, read his report here for free.

Northern Cobalt’s share price reaps large scale potential

Key infrastructure requirements are already in place for the vanadium project at the Snettisham Hydroelectric power plant, housing great potential for the vanadium project to offer large-scale operations.

But there are conditions for processing and exporting vanadium.

Luckily, Northern Cobalt’s vanadium project is ready to take advantage of the facilities already in place. With its close proximity to the Snettisham Hydroelectric power plant, it offers cheap electricity in order to perform magnetic separation and operation of grinding facilities.

Michael Schwarz, managing director of Northern Cobalt, commented about the vanadium project prospect:

Northern cobalt believes that the fundamentals of the battery metals markets remain strong. Not only is the company placing itself as a potential supplier of cobalt to the electric vehicle markets, it has now acquired a significant vanadium project that gives it exposure to demand for the metal in vanadium flow batteries and the increasing demand for use in high strength steel in the building industry.

Another upside to the project is its location. Its closeness to the ocean, absence of frozen soil and hilly landscape, means that the project can remain operational all year round. This benefit is immediate, as for future advantages, there’s also the possibility of direct material movements from the plant to cape and Panamax shipping options — through the deep-water channel next to the project, as reported in Northern cobalt’s announcement. Adding another processing requirement — access to material handling and transport facilities.

Northern Cobalt’s 2019 forecast

Magnetic surveys and Northern Cobalt’s analysis of geology, suggests the project has potential for vanadium bearing magnetite mineralisation, which is similar to present production of economic deposits.

Leading into 2019, it’s difficult to say how Northern Cobalt’s share value will maintain. But with the recent announcement of the vanadium project and other welcoming news of cobalt and copper systems, Norther Cobalt could be in a good position.

The emerging battery market is growing at a fast pace, and with demand growing, Northern Cobalt could be best suited to take advantage. But as always investors will have to wait and see whether it does.


Ryan Clarkson-Ledward,
For Markets & Money

PS: Aussie investors have seen great results from commodity investments, and with demand set to increase this could still continue. Markets & Money resources analyst, Jason Stevenson believes that your best opportunities lie in smaller, more speculative stocks which aren’t restricted to iron ore. The kind that could see massive share price moves from a single positive drill-hole result. For 10 of his favourite mining stocks on the Aussie market this year, download his free report ‘Top 10 Mining Stocks 2018’, today.

Ryan Clarkson-Ledward is a junior analyst for Markets & Money. Ryan has degrees in both communication and international business. His priority is bringing you the latest price updates on stocks through ASX updates, as well as supporting Sam Volkering with background research. As part of the team at Markets & Money his aim is to provide unbiased and relevant news for readers. Ryan’s work with Sam is designed to provide research that complements Sam’s analysis for small-cap and technology stocks. Together, their objective is to break through all the jargon and give you the hard facts to inform your investment decision-making. Ryan writes for:

Leave a Reply

Your email address will not be published. Required fields are marked *

Markets & Money