21C Metals Hedges with Palladium and Cobalt
The whole issue of electric vehicles (EV) vs. conventionally powered either gasoline or diesel vehicles are going to determine demand for a number of commodities. That would include palladium needed for gasoline-powered cars, platinum preferred for diesel autos, both copper and cobalt for EVs. Regardless of what you read, no one knows what consumer preferences will choose. Palladium has nearly doubled in the past year while sister PGM platinum has been setting new historical records for its discount to gold. Copper is limping along even though all predictions hold that there is a current and increasing production shortfall. Cobalt prices have varied from $14 a pound to $43 a pound and back to $20 in the last year. What is a junior resource company to do?
A small junior named 21C Metals (BULL-C) has chosen to play the resource roulette by betting on both the red numbers and the black numbers. Should EVs be the future, 21C has a historic mine on the border of Germany and the Czech Republic called the Tisova project. It is a copper rich VMS region with production dating back to as far as the 13th century. As late as the 1500s there were thousands of workers going underground to mine up to 5% copper.
21C is committed to spend $4.5 mllion in exploration over five years and to issue 6.5 million shares to the vendors of the Tisova mine. In January after completion of 3D Resitivity and an IP survey along with a detailed mag survey 21C announced a model with five target areas and a number of drill targets all under 700 meters. A financing is in progress as I write with the first tranche announced early in May.
To cover the company’s other bet on metals for conventional vehicles, in late February 21C announced an agreement to purchase the East Bull Palladium property in Ontario Canada containing a pit constrained 43-101 resource of 523,000 ounces of palladium equivalent metal. Terms call for 21C to issue a total of 4.5 million shares and to spend $1.75 million in exploration over a five year period and $975,000 in cash to get 100% of the project.
I happen to be a big fan of all of the PGMs due to over 90% of the world’s supply of the metals coming from Russia, South Africa and Zimbabwe, not the most stable of suppliers.
The theory is excellent and the company is hitting the ground running with major programs in progress both in Ontario and Germany/Czech Republic. The company has raised money and is moving forward. Expect news on a regular basis.
21C is an advertiser and I am biased.21C Metals Inc
BULL-C $.185 (May 09, 2019)
DCNNF-OTCQB 46.1 million shares
21C Metals website