Why ABM chose cobalt
ABM chose to focus on cobalt for the following reasons.
- Very strong demand growth driven by use of cobalt in lithium-ion batteries. CAGR in battery demand > 10% pa through to 2022 and beyond is forecast by many analysts.
- Demand growth is outstripping supply: deficits forecast to 2020 and beyond
- Price rises forecast to continue
- Limited equity exposure opportunities for UK investors
Cobalt from the DRC
- Two-thirds of the world supply comes from the DRC.
- Concern for “clean cobalt” due to exploitation of child labour in the DRC by some artisanal operators.
- ABM always intends to operate at the highest ethical standards.
Cobalt value proposition
- Repositioning the company to focus on strong demand for cobalt and other battery metals.
- Early mover on AIM - strong share price moves by ASX & TSX cobalt developers.
- Strong land position in sought-after mining area.
- Potential for early cash flow due to likely shallow mineralisation.
- ABM expects strong local market for cobalt ore driven by anecdotal Chinese in-country buying.
- Madini’s experience of operations in the DRC should assist ABM’s growth