CBLT signals an exciting new cobalt sign for Green Swan
Cobalt is indisputably one of the commodities of the future. It is widely used in Smartphone technology and other Smart devices, and therefore has a firm place within the cadre of important metals in modern life.
When I get the opportunity to look at a cobalt player that has developing interests outside of Africa, I get excited. Green Swan Capital Corp. (TSXV: GSW) (“Green Swan”) is a good example of a solid cobalt player with exploration properties in Ontario, Canada.
This past week the firm confirmed the acquisition of 2,800 hectares of cobalt property in the Gowganda region that has historically yielded significant cobalt and silver from mines in the area.
The area that Green Swan is buying does not cover past production, but it is highly prospective for cobalt, silver and copper, according to the company’s management. The geology from historic exploration conducted looks impressive.
This purchase demonstrates the focus of Green Swan’s management. The company is in the business of targeting cobalt in reliable mining jurisdictions, thereby delivering value to its shareholders. For this reason, it makes a great share to buy. The properties it owns are in mining-friendly jurisdictions in Canada, and show great promise of mineable cobalt.
The company’s management under leadership of CEO Peter M Clausi quickly turned Green Swan into an owner of multiple sizeable cobalt properties. One year ago, Green Swan owned one property in the Sudbury basin, the Copper Prince, where Green Swan has been doing extensive exploration. During the course of the past three months, the company’s property portfolio has expanded significantly, acquiring four more properties within Canada, with the latest one being the Gowganda asset. The other three are: the Otto Township; Chilton Cobalt; and Dryden Cobalt.
Get our daily investorintel update
The company’s stockholders certainly agree with management’s strategy. Since the start of the year, the stock price has spiked by 140% from a low on 1 February of C$0.05 to C$0.12 on 1 March after the company announced the acquisitions of Otto, Chilton and Dryden. The stock price has settled around C$0.10 at the end of March, 43% up from the share price on 3 January.
Cobalt’s fundamentals are great. Worldwide consumption is increasing, while production simply doesn’t keep up with the demand. I believe Green Swan is well placed to bank in on the strong fundamentals of this market.
The company announced plans earlier in March that it wants to change its name to CBLT Inc. to better reflect what the company does. The name change is set to be approved at the shareholder meeting towards the end of April.
According to CEO, Peter Clausi
“The name change and symbol change are about better reflecting the company’s focus over the next several years on the global shortage of cobalt. It will be hard for any investor, investment banker or media member to look at the company name and not know we’re in cobalt. “Green Swan”, while a good name with a great logo, just didn’t tell a good enough story on its own.”
I think the proposed new name would better serve the company and what it stands for. Shareholders can only benefit from such a positive change. Indeed, the change can potentially attract new interested investors who might previously have overlooked Green Swan purely because it wasn’t clear what the company did. With a name like CBLT, there simply can be no doubt that the company’s business is that of cobalt.
I personally love the name Green Swan, but the name change gives management an opportunity to discuss the company’s vision with its shareholders. CBLT signals a new chapter of Green Swan’s evolution into a serious cobalt player!
Lara Smith has spent over a decade covering commodity markets. She started her career as a buyside analyst in South Africa where she covered soft ... <Read more about Lara Smith>