EDITOR: | October 16th, 2018

Canada Cobalt Works’ CEO on the ‘real market’ for cobalt

| October 16, 2018 | No Comments
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Frank Basa on how the real market for the cobalt sulfate provider is the cathode market

“We just came back from Europe. We spent some time in Germany. We listened to the end buyers. We are targeting the end buyers. I think drill results are effective, but the reality, what the market wants, what the end buyer wants is cobalt sulfate, nickel sulfate, manganese sulfate, all these products. You have to show them that you can produce those products. You have to meet their technical grades, technical specifications and you have to be very reasonable that what you have you can deliver.” States Frank Basa, President, CEO and Director of Canada Cobalt Works Inc. (TSXV: CCW | OTCQB: CCWOF), in an interview with InvestorIntel Corp. CEO Tracy Weslosky.

Tracy Weslosky: Frank in preparing to talk to you about Canada Cobalt Works I was so impressed with your background. You are a resource industry expert. Let us start with cobalt. The cobalt stocks are currently not performing the way I would think as an investor they should be performing. Can you tell us what is going on with the cobalt industry? 

Frank Basa: Actually we are probably in the same spot like everybody was originally. What we did was we listened to the market. We listened to the people that would be buying our product and we did what we call a technical. We said, look we will show the world we can remove the undesirables from our product and also produce the cobalt sulfate that the market wants. We were actually in China and Japan. We spent 10 days in Asia about a year and a half ago. What you are reading now we already knew about that a year and a half ago. We just came back from Europe. We spent some time in Germany. We listened to the end buyers. We are targeting the end buyers. I think drill results are effective, but the reality, what the market wants, what the end buyer wants is cobalt sulfate, nickel sulfate, manganese sulfate, all these products. You have to show them that you can produce those products. You have to meet their technical grades, technical specifications and you have to be very reasonable that what you have you can deliver.

Tracy Weslosky: Alright. Let us just start for the InvestorIntel audience, we are self-directed accredited investors, can you tell us what cobalt sulfate is? What is the difference? 

Frank Basa: You see a lot of the smelters only produce cobalt metal, but the cathode makers are asking for cobalt sulfate and it is a special thing that they want. They want a certain grade and plus you have to have certain purity or impurities removed from the product. Then they take that product and they blend it either with a nickel sulfate or manganese sulfate or a copper sulfate to make their own specific battery. It is sort of like a recipe. They have their own cookbook. What we have to do is produce these products on specification so they can make their end product for the cathode makers.

Tracy Weslosky: If I hear you correct the real market for the cobalt sulfate provider is the cathode market?

Frank Basa:  Yes. 

Tracy Weslosky: Okay. Tell us about the cathode market. 

Frank Basa: Apparently everybody has been talking, that is what we thought, about battery manufacturers, but the reality was you go to the cathode makers. They are the ones that produce the product for the battery manufacturing people. It is kind of a little more sophisticated. Japan is even far more sophisticated. For example, we met with Nissan to talk to them to get a feel for the cobalt market. The way Nissan works they have to buy from metal trader. The metal trader buys it from somebody, gives it to the cathode maker and then Nissan has a design battery that somebody else makes for them. Then Nissan gets the battery…to access the complete interview, click here

Disclaimer: Canada Cobalt Works Inc. is an advertorial member of InvestorIntel Corp.


Raj Shah

Editor:

Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>


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