Expert Trader Samuel Leach: Silver and Cobalt Driving EV Revolution to Navigate Scarcity

(Credit: Expert Trader Samuel Leach: Silver and Cobalt Driving EV Revolution to Navigate Scarcity) Expert Trader Samuel Leach: Silver and Cobalt Driving EV Revolution to Navigate Scarcity
March 2
2:26 PM 2021

Stock and Forex Trader Samuel Leach from Samuel and Co Trading, recognised as one of Yahoo Finance's Top Traders To Follow in 2020, ranked 7th in the Fintech Disruptor Awards (2020) and the subject of "The Real Forex Trader" documentary, had this to say about investing in Cobalt and Silver extraction and Canada Silver Cobalt Works, Inc.

I have commented previously on the expected growth in Electrical Vehicle ('EV') manufacture and registration. Deloitte foresees total EV sales to grow from approximately 2.5 million last year to around 11.2 million in 2025, increasing to about 31.1 million by 2030. Cairn Energy Research Advisors see EV sales to rise above 3 million cars for the first time in 2021. 

In 2030 the UK will ban the sale of new conventional combustion engine cars, and manufacturers are rolling out an ever-expanding range of EVs to meet demand, with new manufacturers entering the market to compete with the established badges of Toyota and Lexus. The potentially $3 Trillion EV market is reliant on reliable and cost-effective mineral extraction and processing. Whilst Lithium and Nickel are at the forefront of the market's mind, EV batteries are as reliable on Silver and Cobalt. 

Cobalt is critical for EV power sources and demand currently outstrips supply. Silver is used at the rate of 55 million ounces per annum in the car industry, and the market is perennially plagued by shortages in the region of 1 million ounces. 

Within this context, I have looked in-depth at investment in Cobalt, Silver and mineral extraction, particularly Canada Silver Cobalt Works, Inc (TSXV: CCW)(OTC: CCWOF).

The company is a silver and cobalt exploration, development, and technology leader with operations centred on the Nothern Ontario district of the renowned 'Canadian Shield' - one of the world's most mineral-rich zones, famed for its mining. It is rumoured to be pivoting towards being a premier supplier for EV companies. Some commentators see this as part of a closed-loop supply chain strategy, where Canada Silver Cobalt Works, Inc mine, process, and supply silver and cobalt, as well as other critical minerals and materials to market. Specific technological advantages including its RE-20X tech may be critical in their strategy, as well as a new cobalt extraction site being developed in conjunction with SGS Canada. Their approach starts at their Castle and Beaver Mines.

The Castle site has had a long operational period dating back to 1917, with an output of 9 million ounces of silver and 376k pounds of Cobalt. Reports of high-grade gold (c. 22.7 g/t) and high-grade silver and Cobalt have been identified in Phase 2 operations, with another wedge hole source of visually high-grade silver being identified in January 2021 already. 

The Beaver mine site has produced c.7 million ounces of silver and a further 139k pounds of Cobalt. February 2021 drilling reports high-grade silver assays within the range of 13.7 g/t and 314 grams per ton of silver. This site is of particular interest to CEO Matt Halliday, as there appears life still in these historical mining sites with great prospects for silver and cobalt extraction.

Canada Silver Cobalt Works, Inc stock has the potential to break its triple top resistance ceiling at 77 cents, for the reasons set out above, which could release greater returns. Key indicators speak in the stock's favour including the 20-day through to 200-day MA, and its 20-50 and 20-200 day MACD oscillator measures. 

Canada Silver Cobalt Works, Inc has experienced leadership in mining and mineral extraction, including CEO Frank Basa with 28 years of gold mining experience having qualified as a hydro-metallurgical engineer. Matthew Halliday, the COO, has 13 years of experience as a resource geologist, and the CFO Robert Guanzon has 25 years of accounting experience including within the mining sector. This all bodes well for robust Corporate Governance within a mining context. 

I consider further research in Canada Silver Cobalt Works, Inc is merited for the following reasons: 

  1. Whilst Lithium, Nickel, Graphite demand is stealing headlines, Cobalt and Silver shortages threaten the EV sector's manufacturing and growth;

  2. The car industry uses 55 million ounces of silver per annum, and yet existing demand outstrips supply by 1 million ounces;

  3. Canada Silver Cobalt Works, Inc aims to supply out of Northern Ontario for the EV manufacturing sector, and that its first-stage pilot cobalt extraction plant appears to be built by SGS Canada. 

  4. In phase two drilling at their Castle Mine Canada Silver Cobalt Works, Inc has discovered high-grade gold, in addition to silver, cobalt, and nickel;

  5. Beaver Mine output hits 7 million ounces of silver and 139 pounds of cobalt, with high-grade silver assays for sonic drilling for the same facility. 

Reflecting on these factors, Cobalt, Silver and mineral extraction and companies like Canada Silver Cobalt Works, Inc are worth a further review - see its website for your own due diligence. 

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