Investors eye BH Prospecting
Tuesday, 9th September, 2014
By Michael Murphy
Instability in the Democratic Republic of the Congo has fuelled speculation about the price of Cobalt, making Broken Hill Prospecting a "stock to watch".
Sources say disruption in the Congo - caused by political instability, power shortages and an outbreak of the Ebola virus - could restrict supply and push up the price.
More than 30 people have died in the Congo from the virus in the latest outbreak sweeping Africa.
The Congo supplies about 55 percent of the world's Cobalt market.
"There are very few new mines in the pipeline so when maximum demand spikes in 2016/17, there needs to be a great deal more secure and stable supply from outside
Africa," one pundit said.
Cobalt is fast becoming an important "metal of the future" through widespread and growing use in batteries for new-generation electric and hybrid cars, computers and telephones and in hardened metal and super alloys.
Electric car company Tesla - which has a cult-like following in the United States - has also just made a big announcement.
"With Tesla going ahead with the $5 billion battery giga-factory in Nevada, this will add to the already growing demand existing today from all of the booming hi-tech industries."
The source predicted the price of Cobalt would climb or even "skyrocket" and this would make Broken Hill Prospecting a "stock to watch".
Broken Hill Prospecting has worked in the Broken Hill district for more than 20 years and holds two exploration licenses and two mining leases in the Thackaringa hills, 25km south-west of the city.
They include the Pyrite Hill, Big Hill and Railway deposits that, the company says, have a combined mineral resource of 35.7 million tonnes of pyrite mineralisation at an
average grade of 1.85 pounds per tonne Cobalt.
In June this year, the company also lodged five exploration licence applications to explore for heavy mineral sand deposits, south of Broken Hill.