Cobalt Demand Rockets prices four times higherThe Government and Big Business
have transferred our assets overseas
over the years, and NOW, it seems,
Every Man and Woman will, in some way,
pay a price.
This my good friend,
is why we invested in PM's and Calvf,
waiting for the eventual Economical DDAY
to take its effect...... It could be here,
BIG TIME.......
Our PRO CALVF Board was ahead of the CURVE,
and beat the so called EXPERTS,
all the way......
I called Calvf yesterday.....
Had a very warm conversation, and always,
I think of questions when I hang up.
Main topic was NEWS to Stockholders......
Management has just returned from a trip to Zambia,
regarding Cobalt....
A Two thousand lb extract sample from target property
has just been sent to SA to be assayed....
At the time Calvf hit its peak price in early 90's,
IT was due to the anticipation of "COBALT."
NOW, WE have Cobalt,
Gold and Platinum that is being worked on currently......
As far as Platinum, 25 holes have been drilled
on roughly 6 miles of land, and management holding
their cards close to the vest,
because
ADDITIONAL lands are being considered to be purchased.... But, ALL in ALL, Goldsmith,
the way the World is going,
I am sure, IT will show the way for CALVF,
and ALL its Loyal shareholders,
and the full value of our investments
will be recognized down the road...
by sailor a Long CALVF shareholder;
Voluntary Disclosure: Position- Long; ST Rating- Strong Buy; LT Rating- Strong Buy
Cobalt Demand Rockets prices four times high
Cobalt Demand Rockets as User-Industries Recover,,,
(Reuters) - Cobalt consumption is expected to reach a record high
over the next two years as demand picks up in the aerospace
and rechargeable battery industries, cobalt experts said,,,Demand in the first three months of this year was higher
than the first three months of 2003.
One would anticipate, barring any global scenarios, that
the demand will be a record high this year," English said.
Peter Searle with CRU Strategies, which supplies analysis
to the metals industry, said cobalt consumption increased
about 8 percent to 43,000 tonnes in 2003 from 2002, and
could reach 57,000 tonnes by 2010 if current
demand continues --
- a diminishing supply of cobalt, a by-product of copper
and nickel that is used in superalloys to make gas turbine
engine parts and as a catalyst in the petroleum
and chemical industries, has many worried about
an industry deficit.
U.S. Defense Logistics, a major American supplier
of the metal, is due to stop supplying cobalt in 2005.</b>
Current projects are not seen producing enough to cope
with demand and future projects are not seen coming
on stream until at least 2007.
Low levels and weak output from the cobalt rich
Democratic Republic of Congo and brisk demand
has helped propel cobalt prices to multiyear highs
of $29 a pound -
- Cobalt prices at $29 a pound is more than four times higher
- than in 2002 - an average realised price of $6.46/lb
- in 2002"There's talk about substitution if these price levels remain.
The battery industry does not like such high prices," Searle said, noting that $15 a pound is a price that cobalt users "can live with."
The coming Copper & Cobalt crunch,,,JP Morgan's estimate of the world mine supply of copper in 2003 was 10.77 million tons.
Throw in scrap amounting to another 1.1 million tons
and you arrive at a total estimated annual supply
of about 11.87 million tons.
Brooke Hunt, a respected mining consultation firm,
estimates that - with all copper production running
at 100% of capacity and with Coldelco's 180,000 ton stockpile coming on to the market, a one time event
- total excess capacity among suppliers could add
another 1.2 million tons, for a total of
about 13 million tons.
But that is a hypothetical total because it is iffy
at best to assume that all mines can produce at 100%.
So, that's the supply side of the equation.
On the demand side, world consumption of copper
in 2003 was estimated at just a figurative hair
under supply, at 11.83 million tons.
The news flash, however, is that demand
is increasing: JP Morgan estimates that in 2004
demand will rise to 12.35 million tons, and
accelerate from there.
Considered from another angle, with the current
growth rate in demand running at over 400,000 tons
annually, even assuming all capacity is brought
on line, within 3 to 4 years available supply
will not be able to meet world demand.
Why the looming imbalance?
As is so often the case these days, look to China
and India, where the rush to build
the infrastructure necessary to sustain
economic growth is soaking up commodities
on a global scale.
In the case of copper, it's largely in the form
of wire and piping.
In China alone, the ecologically infamous
(but it's 95% hysteria, in my opinion)
Three Gorges d**n will generate 20,000 megawatts
of power, and the Chinese Government has just
given approval for another four dams upstream
on the Yangtze which will bring on another
38,000 mega-watts of power.
These are just small indications of how broadly
the Chinese central government is embracing
the idea of a market-based economy.
They have plans for that power, and it's headed
for copper wires laid down in massive
infrastructure projects.
Put simply, there is no end in sight to copper demand.
What about new mine supply?
The big issue with supply is that the majority
of the world's copper deposits have already been
discovered, mostly in the 1960s.
They've been found because copper is usually
located in near-surface porphyry deposits -
structures with a large geological "footprint"
that make them relatively easy to find and,
once found, easy to understand and to exploit.
As a result, new discoveries are hard to come by
and tend to be deeper and harder to mine.
Cutting to the chase, in order for the copper
industry to off-set the fast approaching
supply/demand shortfall, it will have to do much,
much better - in fact, it will require a new
mega-mine on the order of Turquoise Hill
to come on line each and every year for
the foreseeable future.
Yet, looking over the horizon, there is only one
large copper mine, Sossego in Brazil, slated
to come on stream in the foreseeable future,
later this year, or early next.
Bottom line: the odds of the mining industry
being able to find and bring on enough new mine
supply to head off the coming copper crunch -
in the short, medium or even long-term -
is slim to none, and slim is being body-searched
at the airport on the way out of town.CAL Holds Large Rich Land Position in Zambia Mineral Res. -
Caledonia also holds a large land position
on and around the prolific Zambia Copperbelt
on which exploration continues for Copper,
Cobalt, Nickel, Gold, Precious Metals
and Gem Stones incl. Diamonds...www.caledoniamining.com/index.phpInvestors and speculators will be looking for
CALEDONIA Min. CAL - GOLD & Platinum PGMs stock
as a safe haven -
- Zambia one of the Mineral Richest Countries in
the world and one of the last unexplored Great Frontiers -
It is a very good time to start paying
attention to CALVF,,,
or China will suckitup fasttakeover,,,
as they done with most Scottish industry,,,
CALVF's copperbelt in Zambia,,,
one of the Richest in the world,,,www.caledoniamining.com/base.htmlwww.caledoniamining.com/bas_kad.html
www.caledoniamining.com/bas_kal.html
www.caledoniamining.com/bas_kon.html
dd...
www.caledoniamining.com Precious Metals Spot Price's
