Formation Metals announced that as a result of low cobalt prices and market uncertainty, for the moment it will not be continuing with development at its flagship Idaho cobalt project.
What investors need to know about new mining rules in top cobalt producer Democratic Republic of the Congo.
A brief overview of cobalt price developments, supply and demand and significant market movers.
The DRC has imposed a ban on exports of copper and cobalt concentrates to encourage more value-added production.
Formation Metals Inc. (TSX:FCO) announced that it has redeemed the bond debt of US$43.6 million. The debt was made available through the Federal Stimulus Package Recovery Zone Facility Bonds to complete Phase I and Phase II construction of the Company's 100% owned Idaho Cobalt Project. The debt was redeemed using the Company's cash which had been restricted as collateral for the bonds.
Formation Metals Inc. (TSX:FCO) announced that it will defer underground development or any related construction on its Idaho Cobalt Project, as was anticipated in the Company's news release dated December 12, 2012. The Company will be focusing on the advancement of the business at the Sunshine Precious Metals Refinery to increase cash flow, and on a strategic review of its precious metals properties.
Sherritt International Corporation (TSX:S) announced their Q1 earnings, including net earnings of $23.1 million.
Lundin Mining Corporation (TSX:LUN, OMX:LUMI) announced their first quarter results and highlights, including the closure of the of the acquisition of the Kokkola cobalt refinery. As quoted in the press release:
Global Cobalt Corp CEO, Erin Chutter, spoke with the Investing News Network at PDAC in Toronto on how the Company is undergoing a transformation from Puget Ventures (TSXV:PVS) to Global Cobalt.
Reuters reported that the Democratic Republic of the Congo's ban on exports of unprocessed copper and cobalt concentrate will be "fully enforced" by July or August. At that time, the 90-day period during which companies were expected to clear their inventories will be over.
MetalBulletin reported that if prices for cobalt metal remain under $13 per pound, Chinese buyers will likely switch to metal from concentrate.
MetalBulletin reported that both low- and high-grade cobalt prices are steady as market players wait for direction from the Cobalt Development Institute conference scheduled for next week. Prices for low-grade cobalt sit between $12.50 and $14 per pound, while high-grade prices are between $12.90 and $14.10 per pound.
Mining Weekly reported that the price of high-grade cobalt has been on the rise since the beginning of the year and is now sitting at $13.50 per pound. The price is being pushed up by low cobalt supplies and uncertainty about the availability of concentrate from the Democratic Republic of the Congo.