Financial News
Fuse Cobalt, Inc. Accelerates Alpha IPTM Geophysical Survey Plans; Budgets For Multi-Hole Diamond Drill Exploration Program ($FUSEF)
Fuse Cobalt Inc. (TSXV: FUSE) (OTCQB: FUSEF) shares wanted nothing to do with last week's market beat-down. In fact, decoupling from weakness in the nano and micro-cap sectors, FUSEF stock jumped by about 20% last week, with shares exchanging hands at over 19X its average volume on Friday. What's attracting the interest? Well, quite a bit, actually. But most simply put, FUSEF is in the right sector at the right time. And for investors wanting exposure to the massive EV and battery metals sector, FUSEF may be presenting an ideal ground floor opportunity.
Indeed, that's a bullish presumption. But it's warranted because Fuse Cobalt isn't the typical junior miner that often has more ambition than ability. Instead, Fuse is well on their way to capitalizing on massive revenue-generating opportunities from investment in properties in the world's most mining-friendly jurisdictions. Even better, they are developing properties supported by a legacy of success, with two projects in play near proven reserves that put potentially exponential revenue growth into the near-term crosshairs.
Traders are not ignoring that potential. They bid shares higher by roughly 20% last week, and with technicals strengthening after a consolidation period, the trend is firmly shifted into a decidedly bullish gear. The price increase and volume, its highest since August 2021, could be the tell.
Video Link: https://www.youtube.com/embed/agXPpz7BnU4
Investing Its Dollars With Purpose
In fact, with volume surging to over 1.9 million shares traded last Friday compared to its three-month average of just 103K, it's more than a tell; it's an indicator. And it's a bullish one.
But here's the better news behind the move. FUSEF is itself providing why investors may want to take advantage of an apparent valuation disconnect between assets, project potential, and share price sooner than later. In fact, recent updates help support the contention that FUSEF is possibly one of the green-energy sector's most undervalued junior-miner investment opportunities.
They provided an excellent one last week, announcing plans to undertake a "state of the art" Alpha IPTM geophysical survey by Simcoe Geoscience Limited and follow it up with a multi-hole diamond drilling exploration program. The goal is to evaluate the potential of its 100% interest in cobalt-focused Glencore Bucke Property in Ontario, Canada. That planned exploration program is already funded, with an initial budget of $500,000 allocated to locate and test targets within the vicinity of known mineralization from prior drilling results.
Results are expected to be encouraging. Remember, these properties are located near already massive proven reserves.
Maximizing Glencore Bucke Property Potential
Its 100% interest in the Glencore Bucke Property is an example. The property consists of two patented mining claims totaling approximately 16.2 hectares (about 40 miles) located west of and contiguous to its Teledyne Cobalt Project. Both properties have excellent pedigree.
The Teledyne leased mining claim 585, now the "Glencore Bucke Property," traces back to initial development through Falconbridge Nickel Mines Ltd. While an excellent prospect then, it's better now, with significant exploration and monetization potential from accessible southern extensions of veins from the Cobalt Contact Mine property. In the mining sector, past performance is an excellent predictor of success.
So far, completed work delineated two mineralized zones that could have a significant value-enhancing impact at its Glencore Bucke property, the Main Zone and Northwest Zone, measuring 500 ft (152.4 m) and 200 ft (70.0 m) in length, respectively. Keep in mind that before the 2022 mineral exploration season, FUSEF has been active in developing the location, completing 21 diamond drill holes in the first phase of drilling intended to confirm and extend the existing known mineralized zones on the property. Highlights from the 2017 diamond drill program include but are not limited to:
FUSEF didn't slow down. In 2018, they completed their phase ll operation, drilling an additional 24 diamond drill holes at Glencore-Bucke. Moreover, they successfully intersected mineralized zones along strike in addition to both vertically above and below previous intersections reported on the Main and Northwest Zones. Again, the results are encouraging. One of the holes, GB18-44, intersected visible cobalt mineralization and returned grades of 0.11% Co, 9.4 ppm Ag, and 1.04% Cu over a core length of 8.40 m from 110.60 to 119.00m. Those results were included in its NI 43-101 Technical Report on the Teledyne Cobalt and Glencore Bucke Project, published in February 2021.
Noting the Teledyne Cobalt project, it's also an expected near-term value driver.
Teledyne Cobalt Project Also In-Play
Sitting along the west boundary of its Glencore Bucke property, Fuse's Teledyne Cobalt Project is another value driver in play. The 100% interest in that property, also in Cobalt, Ontario, adjoins the south and west boundaries of claims that hosted the Agnico Mine ($AEM). By the way, both properties have more than excellent heritage; they likely remain rich in reserves.
The Glencore Bucke Property adjoins, on its northeast corner, the former cobalt-producing Agaunico Mine, which from 1905 through to 1961, produced a total of 4,350,000 lbs. of cobalt and 980,000 oz of silver. More notable is that the amount of cobalt produced from the Agaunico Mine is greater than that of any other mine in the Cobalt Mining Camp. Production ceased in 1961 due to depressed cobalt prices and over-supply. Don't take that as a negative for FUSEF's prospects.
Remember, the green-energy initiative was just a faint blip on the radar screens during that time. Of course, things have changed. Some market analysts expect demand to outstrip supply by as much as 10X over the next ten years. That could translate to FUSEF more than sitting on a mountain of mineral riches; there should be no shortage of customers eager to buy supply.
Expected and durable demand is just one aspect making the FUSEF investment proposition attractive. FUSEF is also showing that there is depth to its operations. Their properties in Bucke and Lorrain Townships consist of 5 patented mining claims totaling 79.1 hectares (195.46 miles) and 46 unpatented mining claim cells totaling approximately 700 hectares (1729.74 miles).
Moreover, they are each supported by a well-maintained infrastructure, with properties easily accessible by highway 567 and an established secondary road already in use to support cost-effective operations. That infrastructure is getting more robust.
De-Risking Opportunity Through Infrastructure
To date, over $25 million ($CAD), on an inflation-adjusted basis, has been spent developing its Teledyne Property infrastructure. That includes creating a development ramp and a modern decline going down 500 ft parallel to the main cobalt mineralized vein, providing an accelerated opportunity for FUSEF to capitalize on the property and mitigate financial risk.
Just as important, having efficient access to its projects enables FUSEF to more quickly target business from a battery metals sector that is fundamentally strong but still in the early innings of market adoption. And Fuse isn't taking advantage of the massive opportunity with uncalculated ambition. Instead, FUSEF is actively de-risking its battery metal exploration projects by paying attention to the lifecycle of mineral discovery projects.
That consideration trickles down as a benefit to investors as well.
Investors Can De-Risk Too
Actually, for investors, FUSEF's efforts could pay big rewards. And better yet, with less exposed risk as a result of FUSEF doing its part to mitigate the downside while seizing opportunities for the exponential upside. And the more excellent news is that investors can participate in that upside, especially from FUSEF focused on project "timing" and "lifecycle" indicators to maximize returns and minimize new and existing project risk. In other words, Fuse is not only creating value but preserving it, with evaluations made during the concept, pre-discovery, and development phases intended to expose big-picture opportunities and limit unnecessary financial exposure.
But there's more value inherent to the FUSEF proposition. Investors also benefit from a team of proven leaders and advisors that intimately understand their industry, have a track record of finding accretive valuable resources, and know how to make, plan, and advance projects in world-class regions. FUSEF investors get all of that and more. They also get low-priced exposure to a battery metals sector expected to have a trillion-dollar combined revenue-generating opportunity in the near-term crosshairs.
Also important, early investors should benefit from analysts forecasting that the need for battery metals and green-energy "fuel" will increase exponentially over the next five years. Recent headlines could take that demand to another level, with several in August suggesting that several states are already planning to eliminate sales of gas-powered vehicles entirely by 2035, inevitably making FUSEF's presence in the sector more timely.
Frankly, there are no shortages of bullish expectations. Some sector analysts claim that the global battery metals supply chains must expand by 10x to meet projected critical battery metals needs by the end of this decade, and that's just for starters.
According to the International Energy Agency (IEA), the mining industry needs to build at least 17 more cobalt mines by 2030 just to meet global net carbon emissions goals. Undoubtedly, with cobalt extraction focus and project location, FUSEF is in the right place at the right time to seize its opportunities.
Positioned For Growth In Mining-Friendly Jurisdictions
In fact, they are ideally positioned for potentially exponential growth resulting from operating in Ontario, Canada, one of the world's most mining-friendly jurisdictions. Being there minimizes the risk of interference from geopolitical conflict, disruptive changes to environmental regulations, and lacking a skilled and able workforce. Notably, Ontario, Canada, is ranked #12 out of 77 for "Investment Attractiveness" by Fraser Institute's 2021 mining survey, with part of that ranking attributed to government and regulatory stability.
Perhaps best of all from an investor's perspective is that in addition to enjoying project visibility, FUSEF can also leverage existing infrastructure with projects close to essential roads, power, equipment, and field service companies. Better still, capital investment is pouring into the region.
Recent investments of over $50 million (CAD) have been committed to accelerating the development of cobalt mining projects where FUSEF operates, including $5 million from the Canadian Federal government, $5 million from Ontario's provincial government, and a loan commitment of $45 million from mining and commodities trading giant Glencore Plc ($GLNCY) to refurbish and reopen the regions only refinery.
A Compelling Proposition In-Play
All tolled, FUSEF presents quite a compelling investment proposition. And better yet can support its case for significantly higher valuations based on intrinsic value not realized in its share price. Reasons that support higher prices include its place in the mineral discovery lifecycle, advancing through the concept and pre-discovery project phases, and being well-capitalized to fund operations through the remainder of this year.
And don't under-appreciate that FUSEF is uniquely positioned to ride the tailwind created by major players like Glencore Plc, whose massive regional investments will revitalize the country's only cobalt refinery. Remember, too, that FUSEF doesn't necessarily need to unearth cobalt and other minerals or metals to return potentially exponential value to investors. Proven assets underground are also appraised; just look at junior miners in the precious metals sector, with some sporting valuations toward the billion-dollar level just by proving reserves.
Is Fuse Cobalt on a similar path toward valuation prosperity? With activity on the ground, a significant number of exploratory holes drilled, and geological surveys and project updates expected near-term, it's a more likely proposition than not. But with that said, here's the better news for early investors...FUSEF stock could be set up for a big run higher even before extracting minerals. And if the adage "volume precedes price" is relied upon, that move could be starting.
Disclaimers: Shore Thing Media, LLC. (STM, Llc.) is responsible for the production and distribution of this content. STM, Llc. is not operated by a licensed broker, a dealer, or a registered investment adviser. It should be expressly understood that under no circumstances does any information published herein represent a recommendation to buy or sell a security. Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The information made available by STM, Llc. is not intended to be, nor does it constitute, investment advice or recommendations. The contributors may buy and sell securities before and after any particular article, report and publication. In no event shall STM, Llc. be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or made available by STM, Llc., including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information in this video, article, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. STM, Llc. strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D. For some content, STM, Llc., its authors, contributors, or its agents, may be compensated for preparing research, video graphics, and editorial content. STM, LLC has been compensated up to ten-thousand-dollars cash via wire transfer by a third party to produce and syndicate content for Fuse Cobalt, Inc. for a period of one month. As part of that content, readers, subscribers, and website viewers, are expected to read the full disclaimers and financial disclosures statement that can be found on our website.
The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled.
Media Contact
Company Name: STM, LLC.
Contact Person: Michael Thomas
Email: contact@primetimeprofiles.com
Phone: 973-820-3748
Country: United States
Website: https://primetimeprofiles.com/
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.