Anthony Milewski: What Is Up Next for Cobalt Prices?
Anthony discusses why they became interested in the cobalt market. They were looking for investment opportunities when they began examining newer disruptive technologies. The electric vehicle was one such technology, and they recognized that battery demand would soar. Two years ago they identified that cobalt would be in high demand and that there are very few cobalt mines in the world.
They soon realized that there was a lot of hurdles in starting a streaming company, so they began accumulating cobalt from the market so they could have an IPO. He says, “There really are no other stockpiles of cobalt other than the Chinese government’s supply.” Cobalt 27 has accumulated 3000 metric tonnes (370 million dollars) and recently raised 200 million to invest in streams.
He says, “The best investment in the electric vehicle space is in cobalt regardless of which car companies win, cobalt will be needed.”
There will be a high-demand for a company with assets like Cobalt 27. Since they do not get supply from the Congo that should increase shareholder value as car companies will be looking for such a supply. This coupled with a streaming model will give the company excellent upside potential.
The increased demand and prices of cobalt have not changed the needs of the market but has brought awareness of the increasing need to develop projects. E.V. penetration rates estimates are going to require at least a doubling and possibly a tripling of battery production. It’s possible that penetration rates by 2025 will be even higher than estimated.
Talking Points From This Week’s Episode
• Electric vehicles are a disruptive technology driving battery demand.
• Cobalt 27 has one of the worlds few stockpiles of cobalt.
• Regardless of which car company succeeds cobalt will be needed.
• Electric vehicle demand could reach 35% of the market by 2025.
Mr. Milewski is the Chairman of Cobalt 27 and an MD at Pala Investments. He has spent his career in various aspects of the mining industry, including as a company director, advisor, founder, and investor. In particular, he has been active in the battery metals commodities including investing in nickel, lithium, and cobalt and actively trading physical cobalt. In 2016, one of the industry’s leading publications, “The Mining Journal,” named him as a Future Mining Leader.
Mr. Milewski has managed numerous mining investments at various stages of development, including exploration, development, production and turnaround situations, and across a broad range of commodities. He has served as a director of both public and private companies. Mr. Milewski is a member of the investment team at Pala Investments Limited, and prior to joining Pala Investments, he worked at Firebird Management LLC.
Mr. Milewski previously worked at Renaissance Capital and Skadden, Arps, Slate, Meagher & Flom LLP in Moscow, where he focused on advisory and transactional work in metals & mining and oil & gas sectors. He has lived and worked in Africa and Russia, including a year as a Fulbright scholar, and has spent considerable time in Central Asia.
Mr. Milewski holds a B.A. in Russian history from Brigham Young University, an M.A. in Russian and Central Asian Studies from the University of Washington, and a J.D. from the University of Washington. He holds an LLM from the Russian Academy of Sciences.