Mining
Global Energy Metals: on track to become a leading player in the cobalt industry
June 16, 2020
4 min. read
Here's what you need to know
- The company has formed some key partnerships — Electric Royalties Ltd. is acquiring a small interest in GEMC’s Australian assets for a non-dilutive nearly $2 million financing.
- It is one of the only companies in the cobalt space to hold multiple primary cobalt assets in mining-friendly jurisdictions — most cobalt comes from mines in the Democratic Republic of Congo.
- GEMC’s Nevada based battery mineral properties are within close proximity to Tesla’s Gigafactory — the factory is just 150 kilometres away from the Lovelock and Treasure Box properties.
With cobalt-focused assets located in some of the friendliest mining jurisdictions in the world, Global Energy Metals Corp. (GEMC) offers shareholders exposure to a supercharged market that has the potential to grow at a rate of 5 to 8 per cent per year in the coming years.
“Over the past year, GEMC has focused on building its portfolio of cobalt assets and forming partnerships that make it an attractive investment. It’s part of the reason I chose this stock for the Richmond Club Index.”
Greg Beckett, Senior Analyst and Chartered Investment Manager for the Richmond Club
“Electrification is here,” says Mitchell Smith, GEMC’s president and CEO. “Dramatically increasing the production of batteries to electrify vehicles will demand enormous quantities of critical minerals like cobalt.”
An attractive, opportunistic location
Located on the doorstep of Tesla’s Gigafactory One, the Lovelock Mine and Treasure Box projects are of primary importance to GEMC’s battery minerals supply strategy. The projects are located in Nevada, making them particularly attractive because they could add to a localized domestic supply chain for these critical minerals.
“We are strong believers that our future will be determined by our ability to transition to and support a sustainable clean-energy world using battery technology,” explains Smith. “We consider the emergence of this theme to be one to the largest investment opportunities of this century. Cobalt is very much critical to the movement.”
In particular, GEMC plans to apply modern exploration techniques at the Lovelock project, which is just 150 kilometres away from the Gigafactory. The property hasn’t been fully explored since producing a limited amount of high-grade cobalt, nickel, and copper at the turn of the last century.
“Last year, we did some metallurgical work, underground mapping, drone-based magnetic surveys, and orthophoto digital work. Next we will interpret all that data and work towards the first ever inaugural drill program at Lovelock,” says Smith.
Key partnerships
Earlier this year, GEMC also announced a partnership with Electric Royalties Ltd. for a small interest in its Queensland, Australia assets.
“The partnership is for a non-dilutive nearly $2 million financing. This commitment by Electric Royalties is a significant endorsement of the Millennium and Mount Isa projects by a mine finance firm focused on minerals at the centre of the new energy economy.”
In addition, GEMC partnered with a group called Cobalt Blue, an ASX-listed peer, that returned exceptional cobalt, copper, and gold recovery results from the Millennium Project metallurgical collaborative test-work program using Cobalt Blue’s unique processing technology.
All of GEMC’s properties are located in friendly jurisdictions, adding to the appeal of the company’s stock. At present, the majority of cobalt refinement and production comes from two countries — the Democratic Republic of Congo and China.
But GEMC — with its assets in Australia, the U.S. and Canada — is hoping to break that reliance. Reducing a reliance on foreign sources for essential materials, even while transitioning to a green economy, is key to GEMC’s investment thesis.
“We are focused on building a pipeline of material from safe, pro-mining jurisdictions offering investors a more stable option,” says Smith, adding, “we plan to develop a viable source of cobalt to unblock potential bottlenecks brought on by the growing demand from the electric vehicle and consumer electronic markets.”
“Over the past year, GEMC has focused on building its portfolio of cobalt assets and forming partnerships that make it an attractive investment,” says Greg Beckett, Senior Analyst and Chartered Investment Manager for the Richmond Club.“It’s part of the reason I chose this stock for the Richmond Club Index.”
Beckett highlights these reasons for investors to consider Global Energy Metals right now:
- The company has formed some key partnerships in 2020 — among them, Electric Royalties Ltd., which is acquiring a small interest in GEMC’s Queensland, Australia assets for a non-dilutive nearly $2 million financing. Plus, GEMC partnered with Cobalt Blue.
- It is one of the only companies in the cobalt space to hold multiple primary cobalt assets in mining-friendly jurisdictions — most of the world’s cobalt comes from mines in the Democratic Republic of Congo.
- GEMC’s Nevada based battery mineral (cobalt, copper, and nickel) properties are within close proximity to Tesla’s Gigafactory — the factory is just 150 kilometres away from the Lovelock and Treasure Box properties.