A conversation with Joe Kaderavek, CEO of Cobalt Explorer and Developer, Cobalt Blue Holdings (ASX: COB).
Do I invest in Cobalt mining companies now? Let’s understand the market first, and see if I buy in to the thesis for Cobalt as part of future Battery design and the Electric Vehicle revolution.
Kaderavek, an engineer, banker and hedge fund manager by background, explains to us the make-up and construction of the Supply / Demand economics of the Cobalt market. First surprising fact is Cobalt is a small market; 125,000t – 130,000t of metal equivalent. The entire cobalt market is the size of one medium size cargo ship.
The Cobalt market is more complicated than we realised. The problem is the opaque nature of the cobalt refining process business. We learn about how data is pulled together.
This conversation gives us clues to help us make better investment decisions with regard to cobalt. Quite a few clues as it turns out. Understanding the cobalt sector’s moving parts and players is always useful when piecing together your own investment thesis. We spend time talking about the Demand and Supply drivers and try to understand who controls the market. We get a take on how juniors can position themselves in the market, or not.
What is cobalt used for? Does it have a future. And where does it fit in the future of battery design? We learn a lot. Let us know what you think of Joe Kaderavek.
- 2:04 – Joe Kaderavek’s Background
- 3:44 – The Cobalt Market: Size and Price Volatility
- 7:58 – Who’s Regulating the Market?
- 10:59 – Supply & Demand
- 14:14 – Applications for Cobalt: Batteries, Computers and Other
- 22:27 – Predicting the Future: Contracts and Price Changes
- 31:21 – Creative Means for Juniors to Secure Financing and the Problems That Come With Them
Published on March 2, 2020