It’s been 282 days and things are going. I’ve half-ditched my DRIP dividend investment strategy. I will keep my core dividend plays, but I’ve also cashed out parts of my Oil Dividend plays in order to support my resource investment strategy. I’m going to update my month-to-month dividend income, but it’s not going to be my core focus. I *think I still get around $1000/ month in dividends, but to survive in the Bay Area, I need more than 10 times that to retire safely. I need a boost in net worth. DRIP is just not going to get me to my destination. I’ve gotta take the dive.
Ok my cobalt play.
Cobalt has been soaring like a beast, and I can’t help but to chase this moving train. I can see so many reasons to chase cobalt. See below.
- Cobalt Spot Price now at $25 USD /lb!
- EVs and energy storage will likely be huge in the future
- Cobalt is the key ingredient in many types lithium ion batteries.
- Cobalt is usually mined as a by-product of nickel or copper, and most of the supply comes from the DRC, a not so stable area in Africa.
- if anything breaks out, the global supply of cobalt is screwed
I can clearly see a future in energy storage, and clean energy (that includes nuclear of course), so it is CRITICAL I jump on this train NOW. Seeing the future trend is not enough though, I need to know how to invest in cobalt. It’s a tough play because there aren’t many pure Cobalt miners out there.
I currently have positions in Ardea Resources, ECobalt Solutions, and Katanga mining.
Ardea Resources (ARL.AX)
This company is spun out from Heron Resources, and I’ve actually invested in this company because of how much resources they have and its low valuation. Some folks at ceo.ca did the math and calculated that based on Ardea’s cobalt resources, Ardea’s market cap SHOULD NOT be valued at 30 mil AUD. In fact, it should be way more. No, I mean WAY WAY WAY more. If you count its Nickel, Zinc, Gold, Jade resources, this is definitely a cheap company to invest in.
But who knows, perhaps investors out there know something I don’t, and as an amateur resource investor, what do I know. I just know blue chip stocks are not my thing ( Thanks FIFighter for the tip), especially when the US Market have been in a bull market for years.
ECobalt Solutions (ECS.TO)
I believe this IS a pure cobalt and owning a cobalt producer in USA is critical to the clean energy boom in the US.
Katanga Mining (KAT.TO)
This is an oddball. I owned it, flipped it, sold it, and bought it back. I like cobalt, but I’m not a fan of DRC and their artisanal mining. DRC does creep me out a bit, but I’m not ruling out the potential of cobalt plays in DRC.