A Canaccord Genuity report provided an update on
the Idaho project.
In a Sept. 11 research note, analyst Eric Zaunscherb with Canaccord
Genuity reported that eCobalt Solutions Inc. (ECS:TSX; ECSIF:OTCQX; ECO:FSE) successfully
finished pilot-scale metallurgical testing for its Idaho cobalt project and
intends to release the optimized feasibility study results by the end of this
month. "These results could be an important milestone for eCobalt and a
catalyst for its share price," he added.
After eCobalt releases the findings, Zaunscherb explained, it will ship
samples from the pilot plant to prospects for potential offtake agreements,
finalize terms and agreements with them as part of a project financing
package and come to a production decision.
The analyst noted that eCobalt's stock price has "suffered since the
beginning of the year." He attributed this in part to depressed
"sentiment around the battery materials theme" and delays in the
feasibility study process. The latter were caused by the decision of
eCobalt's management team during the study to change the type of cobalt to be
produced at Idaho, to a low-arsenic cobalt copper concentrate instead of
cobalt sulphate heptahydrate.
Zaunscherb purported that the battery materials space should gain favor
toward year-end, when "electric vehicle sales penetration ticks up and
newly constructed battery manufacturing capacity comes online, complete with
start-up restocking."
Canaccord Genuity maintains its Speculative Buy rating and CA$0.90 per
share target price on eCobalt Solutions, whose stock is trading now at around
CA$0.81 per share.
[NLINSERT]
