FORTUNE MINERALS L (OTCMKTS:FTMDF) has started to garner a ton of new interest over the past few days, with shares ripping as much as 85% higher on a huge influx of new volume. The catalyst is difficult to find but is likely related to continued momentum in the cobalt space. Cobalt has been very much on fire in a move that seems tied to similar factors as those driving the lithium boom because you can’t make a lithium-ion battery without cobalt.
One issue that may be helping to drive cobalt miner prices higher is some recent high profile press about the primary source of cobalt: the Democratic Republic of Congo (DRC), where we have seen a bevy of coverage to do with child labor practice issues, and strong concerns being voiced by the London Metals Exchange, which is the principal trading post for cobalt stocks. Under these conditions, one might see a Canadian cobalt producer as sitting on a time bomb filled with money… if the mine ends up productive.
FORTUNE MINERALS L (OTCMKTS:FTMDF) bills itself as a North American development stage mining company and past producer.
Fortune is currently focused on advancing the vertically integrated NICO cobalt-gold-bismuth-copper project, comprised of a proposed mine and mill in the Northwest Territories that will produce a bulk concentrate for shipment to a refinery that the Company plans to construct in Saskatchewan.
The products that will be produced at the refinery include cobalt chemicals used to make high performance rechargeable batteries, bismuth metals and chemicals, as well as gold. With all of its assets located in North America, Fortune is positioned to become a reliable producer of these products that are critical to a growing world economy and otherwise subject to supply chain risks from political and/or policy uncertainty and concentration of supply.
Fortune also owns the Sue-Dianne copper-silver-gold deposit and other exploration projects in the Northwest Territories, and maintains the right to repurchase the Arctos anthracite coal deposits in northwest British Columbia that were previously purchased by a British Columbia Crown corporation.
According to company materials, “Fortune is a Canadian mining company focused on developing the vertically integrated NICO cobalt-gold-bismuth-copper project in the Northwest Territories and a related refinery the Company plans to construct in Saskatchewan. Fortune also owns the Sue-Dianne copper-silver-gold deposit located 25 km north of NICO and a potential future source of incremental mill feed to potentially extend the life of the NICO mill.”
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As noted above, we have seen growing concerns about the viability of the DRC as the main producer of cobalt on planet Earth. The cobalt market was tight enough already. And if we start to see politics get in the way of DRC cobalt, prices could surge even further. All of this casts a spotlight on North American cobalt plays like FTMDF.
Robin Goad, President and CEO of Fortune commented earlier this month, “Transformative electrification of the automotive industry is accelerating as cost parity with internal combustion engines is being reached and as more governments announce future bans on gasoline and diesel-powered vehicles. Forecasts of electric vehicle adoption are increasing with estimates of up to 25% penetration of global vehicle sales by the mid-2020’s. Fortune is increasing its planned cobalt production to in response to the growing cobalt supply chain bottleneck”.
The chart shows 55% piled on for shareholders of the listing during the trailing week. The situation may be worth watching. FTMDF has a history of dramatic rallies. Moreover, the company has witnessed a pop in interest, as transaction volume levels have recently pushed greater than 610% beyond what we have been seeing over the larger time frame.
At this time, carrying a capital value in the market of $69.1M, FTMDF has a significant war chest ($4.7M) of cash on the books, which must be weighed relative to virtually no total current liabilities. The company is pre-revenue at this point. We will update the story again soon as further details emerge. Sign-up for continuing coverage on shares of $FTMDF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $FTMDF, either long or short, and we have not been compensated for this article.