| September 09, 2011 Minesite.com publishes an update on Formation Metals' Idaho Cobalt Project Publisher: minesite.com Author: Sally White | |
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- FOR THE INFORMATION OF SHAREHOLDERS AND INTERESTED PARTIES ONLY -
The company has had a busy summer following a C$80 million raise earlier in the year. Works on access roads have been completed, work on site roads is underway, and so is crusher and concentrator pad construction. "Pouring of concrete foundations is expected later in September in preparation for the fabrication of both the concentrator and crusher buildings that will follow", according to recent company announcements. Work on the power lines has already commenced. A level pad is being...>
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| September 08, 2011 Cobalt: A Critical Metal to Clean Energy Publisher: Investment U Research Author: Justin Dove | |
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- FOR THE INFORMATION OF SHAREHOLDERS AND INTERESTED PARTIES ONLY - On Sept 8, 2011, Investment U Research (www.investmentu.com) published a report on cobalt highlighting its use as a critical metals in Clean Energy technologies: "Cobalt has been used as a pigment in glass and porcelain for centuries. Most notably it was used to create that distinctive blue color in fine china. Other than that, cobalt was mainly seen as a byproduct of mining copper and nickel ore. The bulk of cobalt production has been from the Copperbelt in central Africa since the 1970s. But when Zaire (Now the Democratic Republic of Congo) had political strife in 1976, cobalt production was all but cut off. The price of cobalt skyrocketed. As a result, most manufacturers found alternatives to cobalt and demand at the time waned somewhat for the blue metal. But cobalt is making a comeback. Aerospace and green technologies have introduced a slew of new applications for cobalt. According to the Department of Energy, cobalt can't be as easily replaced this time around...."
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| July 28, 2011 Long and winding road to an Idaho cobalt mine Publisher: mineweb.com Author: Kip Keen | |
| Formation Metals' CEO Mari-Ann Green describes what it is like to be in the throes of construction and completion of financing on the Idaho Cobalt Project. VANCOUVER, BC - Formation Metals (TSX: FCO) started to move some dirt at its Idaho Cobalt Project (ICP). That was the gist of Formation's latest press release out a few days ago updating progress on the construction at its core asset: a cobalt deposit in Idaho from which it plans to produce 1,525 tonnes of high-purity cobalt a year for the super-alloy markets starting about mid-2012. This may not sound like much of a triumph to go into depth on: trees cleared, earthworks for a portal bench and mine access underway and the same soon to come at the mill and concentrator site. But in Formation Metals' case there is no question it amounts to just that - a victory in what might be described as having been a war of attrition to get a cobalt project off the ground. Consider this: It has been over a decade and a half since Formation Metals (under a different name) listed on the TSX, 14 years since it punched its first drillhole, a decade since it first outlined a mine plan for the ICP in a prefeasibility study, and a seemingly endless interim filled with battles to get permitting, site access for roads and electricity and financing, finalization of which is close at hand. Also consider that the current CEO Mari-Ann Green was there from the beginning as one of the company's founders. That she is still at the top today is something in an industry where the heads of junior exploration companies, especially in the face of seemingly insurmountable hurdles, roll as often as did heads during the French Revolution. But Green has kept hers, for example, as Formation brought on side Idaho environmental groups en route to getting a go-ahead for the mine from the US Forest Service a couple years ago, or in dueling with Xstrata in the late 2000s, not only a neighbour with part ownership of a US environmental Superfund site, but also, to complicate matters, a major cobalt producer. The two found peace in the late 2000s, settling, among other things, access for ICP minesite power. So what do some ostensibly minor earthworks really mean? "You can't really say, 'Phew', in a press release; you know, show that you're wiping your hand across your forehead," says Green, describing what it feels like to see ground finally moving at the ICP. (In that press release Green sounded as celebratory as one can in a written statement: "We knew it was only a matter of time, but it is still very gratifying to see heavy equipment turning dirt at the mine site.") So it's fair to say there is tremendous relief now construction is underway at the ICP. Though there remains much to do - finalizing debt financing with BNP Paribas the major thing - there is nonetheless a sense that the long wait to see Formation actually making the metal it has long been talking about is nigh. It's not all over, true. But in speaking with Green it can't help get across to the listener that, after the challenges Formation has faced and overcome through the years, little would faze her or be able to get in between this dogged CEO and the ICP. Green is unwavering that now, barring some unforseeable catastrophy, financial, physical, or otherwise, Formation will be ready to produce next year. With such tenacity, Green describes how Formation was ready for any issues that might arise in the ongoing process to finalize a loan from BNP Paribas. "If it's the whole $77 million, that's wonderful," Green says. But on the other hand, if Formation doesn't get the full $77 million, she says, sounding unperturbed, "we might have to supplement it with some mezzanine debt, or some other financing." Whatever the case may be, Green expects financing to be behind Formation no later than the middle of September. The whole $77 million loan would add to the $67 million Formation has in the bank, leftover from an $80 million financing it completed this year, and essentially cover the recently updated $140 million capital cost of the ICP. When or if financing does come through - which Green says should be finalized by September - it could also remove an overhang on Formation's valuation. Formation's market capitalization stands at C$93 million or just C$26 million above the amount of cash it has on hand. Green thinks that will change once the full financing is in place. "The marketplace would like to see no uncertainty," she explains. Lead me to your cobalt Cobalt - supply, demand, and price - is of course another side to the story. Some would argue that mines in Africa, which produces some 65 percent of the world's cobalt and mostly in the DRC, can flood the market. As well, Formation does not have the benefit of record commodity prices as enjoyed by, say, juniors developing gold projects. Cobalt is far off highs it hit in 2008. But those sore points don't add rot beneath the ICP's foundations, Green argues. She builds the case that Formation and its product, a high-purity form of cobalt, often used in super-alloys, such as those incorporated into jet aircraft, is insulated from the broader cobalt market. "They actually can't make it," Green says of African producers and Chinese refiners. Meanwhile, the price of cobalt that Formation expects to fetch for its premium product has held with the base case of the ICP project as set out in Formation's feasibility study. Lower quality cobalt - 99.3 percent pure - goes for about $16 per pound these days, but higher quality cobalt, the 99.9 percent pure stuff that Formation will produce, goes for a little over $20 a pound - just about that price considered in Formation's ICP feasibility study, which estimated production cash costs per pound cobalt at $7.73. Green is not alone in attaching a supply and price premium to the cobalt that will come from the ICP. In an upbeat email outlining his thoughts about Formation's prospects Jonathan Lee, a Battery Materials and Technologies analyst for Byron Capital Markets, agreed that Formation will be insulated from African mined and Chinese refined cobalt. "I believe so," Lee writes. "For high purity cobalt, an approval process is required for use in certain applications on the metallurgical side. With positive feedback with its pilot-scale product from potential clients, we believe this is a competitive advantage for Formation. " As for price, Lee notes that lower quality cobalt and high-purity cobalt trade differently. He writes, "given that high-purity cobalt prices are more price insensitive and are mostly traded on a contract basis, we'll see less fluctuation with the prices." These are arguments - price and supply advantages in Formation's favour - that have no doubt convinced others, including BNP Paribas, to seriously consider Formation's case for building a cobalt mine and processing facility. Lee, for example, notes the BNP loan would in his view likely be finalized and, given ongoing construction at the ICP, he says, "we think Formation will continue to deliver." Buyers appear to hope so too. According to Green Formation has had talks with several traders and end users about building supply relationships once, as planned, the ICP is up and running in 2012. Of note - especially for a CEO that is used to making contingency plans - is that Green draws attention to the fact call volume from potential customers for Formation's cobalt has been high enough there are "no plans to have any extensive marketing department." ICP Overview Minelife: 10 years Net present value: $87.29 million @ $22.52 price of cobalt and 7% discount rate. Proven and probable reserves: 2.6 million tons @ 0.559% cobalt, 0.596% copper and 0.014 ounces per ton gold with a 0.2%. cobalt cut-off. ICP's proportion of global cobalt supply: 3.3%. (Source: Formation Metals) | |
| June 19, 2011 Boeing projects $4 trillion market for 33,500 new airplanes over next 20 years Publisher: Al Bawaba | |
Boeing forecasts a $4 trillion market for new aircraft over the next 20 years with a significant increase in forecasted deliveries. That's according to the Boeing 2011 Current Market Outlook (CMO) released today in Paris. The company's annual commercial aviation market analysis foresees a market for 33,500 new passenger airplanes and freighters between 2011 and 2030.
"The world market has recovered and is now expanding at a significant rate," said Randy Tinseth, vice president of Marketing, Boeing Commercial Airplanes. "Not only is there a strong demand for air travel and new airplanes today, but the fundamental drivers of air travel -- including economic growth, world trade and liberalization -- all point to a healthy long-term demand." Passenger traffic is expected to grow at 5.1 percent annual rate over the long-term and the world fleet is expected to double by 2030. The single-aisle market will continue to see strong demand around the world and is expected to increase its share of the market. Fleet composition will change significantly by 2030 with single-aisle jets making up 70 percent of the total. Robust growth in China, India and other emerging markets will lead to a more balanced airplane demand worldwide. China, which has experienced double-digit growth in gross domestic product in recent years, is forecasted to grow at 7 percent per annum, while South Asia, which includes India, is forecast to grow at 7.1 percent. Asia Pacific is forecasted to need the most new airplanes over the next 20 years and will represent the largest market by value of deliveries at more than $1.5 trillion. The region will account for more than a third of new deliveries worldwide, while the Middle East and Latin America will also continue to show very strong growth. European and North American carriers will continue to see demand for replacement airplanes as they retire older, less fuel-efficient models. In fact, we predict 94 percent of the European fleet operating in 2030 will have been delivered after 2011, with airplanes that are better for the environment, passengers and the airlines. Forty percent of all new airplanes delivered over the next two decades will be replacements. The current industry backlog of more than 2,000 twin-aisle aircraft shows the strength of this market segment. The continued growth in long-haul connections will fuel the need for new twin-aisle airplanes due to the increase in new, nonstop markets. With 1,400 deliveries, twin-aisle airplanes will make up 19 percent of the total European deliveries during the forecast period. Liberalization, as well as fragmentation and new mid-size, long-range airplanes such as the 787 Dreamliner, the 777-200LR (long range) and 777-300ER (extended range), will increase the need for intermediate twin-aisle jets. While passengers are getting what they want -- more frequencies and nonstop service -- rising and volatile fuel prices are expected to continue to challenge the industry. Freighter Fleet Forecast: 2011 to 2030 Boeing projects the world freighter fleet to increase from 1,760 to 3,500 airplanes. Additions to the fleet will include 970 new-production freighters (market value of $250 billion) and 1,990 airplanes converted from passenger models. Large (more than 88.2 tons capacity / 80 tonnes) freighters will account for 690 new-build airplanes. Medium (44.1 to 88.2 tons / 40 to 80 tonnes) freighters will total 280 airplanes. No new standard-body freighters (49.6 tons / less than 45 tonnes) will be required, but there will be 1,240 standard-body conversions. On average over the next 20 years, air cargo traffic will grow at a rate of 5.6 percent. Five Decades of Boeing's CMO Since the beginning of the jet age, Boeing has produced a long-term market outlook. This year marks five decades of our CMO, which we first shared publicly 47 years ago. It is the longest running complete worldwide jet forecast and is regarded as the most respected and comprehensive analysis of the aviation industry. -END- | |
| June 13, 2011 Clean, Cheap Hydrogen Using Cobalt Catalysts Publisher: Ars Technica, wired.com/autopia Author: Kyle Niemeyer | |
For years, proponents of the hydrogen economy have argued that hydrogen will replace traditional hydrocarbon fuels for transportation purposes. But, so far, a lack of new, inexpensive methods for hydrogen production and storage has impeded this goal. Over the last several years, an MIT professor has been pushing cobalt catalysts as a cheap replacement for the expensive metals typically used to split water. A paper in this week's Proceedings of the National Academies of Science describes the latest progress here: integrating the cobalt catalyst with a silicon solar cell to create a device that uses the sun to split water. Hydrogen is an attractive alternative to petroleum because when it is burned or otherwise consumed (as in a fuel cell), it only produces water, although combustion results in small amounts of nitrogen oxides as by-products. However, unlike traditional liquid or gas fuels, hydrogen doesn't exist in its molecular form on Earth, so it must be produced from other sources---it is an energy carrier, rather than an energy source. The primary industrial method for hydrogen production is steam reforming of hydrocarbons such as oil, coal, and natural gas, where high-temperature steam reacts with the fuel to produce hydrogen and carbon monoxide. But this method is unattractive for a few reasons: the resulting hydrogen is more expensive than the starting fuel, carbon dioxide is still produced (although easier to capture and store at a central location than on a vehicle), and it relies on fossil fuel sources. Due to these limitations, researchers are developing clean and renewable methods of hydrogen production, focusing on solar-based approaches. Photoelectrochemical water splitting, also known as artificial photosynthesis, essentially combines a photovoltaic solar cell with electrolysis, the process of using electrical current to break water into oxygen and hydrogen. The most efficient devices of this nature, tandem GaInP2/GaAs cells, use platinum catalysts to significantly reduce the energy required to split the water. They can achieve a solar-to-hydrogen conversion efficiency of 16.5 percent. However, both the cell and the catalyst are extremely expensive, and require a high-pH (basic) electrolyte solution to operate, which degrades the materials over time. Silicon, another semiconductor traditionally employed in photovoltaics, has also been used in less-efficient photoelectrochemical cells (2.5-8 percent so far), but they can be significantly less expensive than the gallium-based cells due to the abundance of silicon. The Si-based devices developed up to this point use the semiconductor surface as a catalyst, but this setup also requires an extremely basic solution---so these suffer the same stability problems over time. To this end, the authors of the current paper integrated a silicon-based photoelectrochemical cell with a cobalt-phosphate (Co-Pi) catalyst that can operate in a neutral pH solution. In addition to avoiding the degrading properties of a high-pH environment, the cobalt-based catalyst is inexpensive compared to a traditional platinum catalyst. The Co-Pi catalyst acts like---and is structurally similar to---the oxygen-evolving (or water-splitting) complex (OEC), the enzyme used in photosynthesis to break down water. Like the OEC, it also exhibits high activity at room temperature in both seawater and fresh water, and operates under neutral pH conditions. This means that, unlike the previous designs, this device doesn't run into any stability problems over time. When combined with an np-Si junction, the catalyst can increase the efficiency of photoelectrochemical water splitting. We've covered this catalyst before being used with zinc oxide, but this is the first demonstration with silicon. This device in its current configuration looks like a sandwich: a 10 μm photoresist, a 140 nm patterned metal contact (Ti/Pd/Ag), n-type Si, p-type Si, a 1.5 nm SiO2 interface, a 50 nm indium tin oxide (ITO) protective layer, and the Co-Pi catalyst film. The photoresist on the n-side protects the metal contacts and silicon from water, while the ITO layer on the p-side protects the silicon from water that penetrates the catalyst. The sunlight or artificial illumination hits the n-side, passing through the photoresist. The primary result of this paper (other than demonstration of the new catalyst integrated with a silicon cell) is that most of the generated potential was used towards the water splitting. As a proof-of-concept, this device is promising, but significant effort will still be needed to develop this concept into a functioning photoelectrochemical cell. Photo: Toyota. The grand-opening of the country's first hydrogen pipeline-fed hydrogen station in Torrance, California, on May 10. -END- | |
| May 26, 2011 InvestmentPitch.com covers Jennings Capital Research Report on Formation Metals Publisher: InvestmentPitch.com | |
InvestmentPitch.com, an official partner of Reuters Insider Network, has highlighted Jennings Capital Inc.'s recent research report on Formation Metals' Idaho Cobalt Mine in a three minute video accessible by clicking on the image below. DISCLAIMER Please note that any opinions, estimates or forecasts regarding Formation Metals Inc.'s performance are made by Jennings Capital Inc. and do not necessarily represent opinions, estimates or forecasts of Formation Metals Inc. or its management. Formation Metals Inc. does not by its reference above or distribution imply its endorsement of or concurrence with such opinions, estimates or forecasts. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or the securities laws of any state of the United States, and may not be offered or sold, directly or indirectly, in the United States unless registered under the U.S. Securities Act and applicable securities laws of any state of the United States or in reliance on an exemption from such registration requirements. This news release does not constitute an offer to sell, a solicitation of an offer to buy any of the Company's securities set out herein in the United States. The statements contained in this notice in regard to Formation Metals Inc. that are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including Formation Metals Inc.'s beliefs, expectations, hopes or intentions regarding the future. All forward-looking statements are made as of the date hereof and are based on information available to the parties as of such date. It is important to note that actual outcome and the actual results could differ from those in such forward-looking statements. Factors that could cause actual results to differ materially include risks and uncertainties such as technological, legislative, corporate, commodity price and marketplace changes. | |
| May 19, 2011 Jennings Capital Inc. Initiates coverage on Formation Metals Inc. with a Buy Rating and C$2.60 Target Price Publisher: Jennings Capital Inc. Author: Ken Chernin, MBA & Bill Mantzoutsos, MBA | |
| Jennings Capital Inc. has initiated coverage today on Formation Metals Inc. (TSX: FCO) with a Buy rating and a target price of $2.60. This research report gives a comprehensive overview of the company, with specific focus on its late-stage high-purity cobalt mine, and the company's Sunshine Precious Metals Refinery in Idaho. The report is available for download from Jennings Capita Website at: Jennings Capital Research Reports FOR FURTHER INFORMATION PLEASE CONTACT: Jennings Capital Inc. Ken Chernin www.jenningscapital.com Ken.Chernin@jenningscapital.com 902-496-7007 Please note that any opinions, estimates or forecasts regarding Formation Metals Inc.'s performance are made by Jennings Capital Inc. and do not necessarily represent opinions, estimates or forecasts of Formation Metals Inc. or its management. Formation Metals Inc. does not by its reference above or distribution imply its endorsement of or concurrence with such opinions, estimates or forecasts. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or the securities laws of any state of the United States, and may not be offered or sold, directly or indirectly, in the United States unless registered under the U.S. Securities Act and applicable securities laws of any state of the United States or in reliance on an exemption from such registration requirements. This news release does not constitute an offer to sell, a solicitation of an offer to buy any of the Company's securities set out herein in the United States. The statements contained in this notice in regard to Formation Metals Inc. that are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including Formation Metals Inc.'s beliefs, expectations, hopes or intentions regarding the future. All forward-looking statements are made as of the date hereof and are based on information available to the parties as of such date. It is important to note that actual outcome and the actual results could differ from those in such forward-looking statements. Factors that could cause actual results to differ materially include risks and uncertainties such as technological, legislative, corporate, commodity price and marketplace changes. | |
| April 11, 2011 Byron Capital Markets Initiates Formation Metals Inc. with a Buy Rating and C$2.70 Target Price Publisher: Byron Capital Markets Author: Jonathon Lee | |
| TORONTO, ONTARIO--(Marketwire - April 11, 2011) - Byron Capital Markets is pleased to announce that it has initiated coverage today on Formation Metals Inc. (TSX: FCO) with a Buy rating and a target price of $2.70. In this 19-page research report, analyst Jonathan Lee gives a comprehensive overview of the company, with specific focus on its late-stage high-purity cobalt mine, and the company's Sunshine Precious Metals Refinery in Idaho. This report further exemplifies Byron Capital Markets' continuing commitment to research and, in particular, its ongoing efforts in the Electric Metals space. FOR FURTHER INFORMATION PLEASE CONTACT: Byron Capital Markets Cyrus Osena 647-426-1675 cosena@byroncapitalmarkets.com Source: Byron Capital Markets | |
| April 07, 2011 Grandich Comments on Formation's Apr 06, 2011 News Release Publisher: www.grandich.com Author: Peter Grandich | |
| Peter Grandich comments on Formation Metals' April 06, 2011 news release regarding an update on it's Idaho Cobalt Project and it's plans to commence construction in Q2, 2011. | |
| March 11, 2011 Dundee acquires 11.66 million Formation Metals units Publisher: (c) 2011 Canjex Publishing Ltd. | |
| Ticker Symbol: C:DC C:FCO Dundee acquires 11.66 million Formation Metals units Dundee Corp (C:DC) Shares Issued 67,192,476 Last Close DC.A 3/10/2011 $23.79 Friday March 11 2011 - News Release Also Formation Metals Inc (C:FCO) News Release Mr. Ned Goodman reports DUNDEE CORPORATION ACQUIRES INTEREST IN FORMATION METALS INC. In accordance with regulatory requirements, Dundee Corp. has acquired, pursuant to a short form prospectus offering, 11,667,000 units of Formation Metals Inc. at a price of $1.50 per unit. Each unit is of one common share in the capital of Formation Metals and one-half of one common share purchase warrant. Each whole common share purchase warrant entitles the holder to purchase one common share for 36 months at a price of $2. These holdings represent an approximate 12.92-per-cent interest in Formation Metals on an undiluted basis or an approximate 18.21-per-cent interest assuming the conversion of all warrants. The position in Formation Metals was acquired for investment purposes and may be increased or decreased in the future as considered appropriate in light of investment criteria, market conditions and other factors and in accordance with the provisions of applicable securities legislation. (c) 2011 Canjex Publishing Ltd. | |
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