March 17, 2021
First Cobalt Corp. (TSXV:FCC, BUY, C$0.45 target, David A. Talbot) announced that it has received a further C$1.92M in cash proceeds from warrants after an acceleration notice provided to holders on February 23, 2021.The gross proceeds consisted of ~5.6M warrants at a strike price of C$0.21/sh and ~2.9M warrants at a strike price of C$0.27/sh. Additionally, the company announced that Cora Klein has joined First Cobalt as Head of Investor Relations. In this capacity, she will be responsible for communicating our strategy to the market as First Cobalt enters the construction phase for expansion and recommissioning of its Canadian cobalt refinery. Ms. Klein has 15 years of experience in communications and investor relations ranging from a micro-cap biotech company to, more recently, a global engineering and construction firm with a market cap of over $4B and annual net revenues of $3.6B. We note that detailed engineering and ordering of long lead items have begun, feed source arrangements are complete covering 90% of refinery capacity and sales off-takes are expected early this year, with production due in H2/22. The company is up 316% YoY and trades at US$EV/lb CoEq of $4.39 vs peers at $0.85. We maintain our BUY rating and C$0.45 target. Read more
