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BREAKING: Apple Enters Mining!
This is a resource bull market that is beginning to take shape.
Apple, which needs cobalt in its Smartphones, is now approaching miners directly, in order to secure a sufficient supply, going forward.
This isn’t typical corporate behavior.
Car manufacturers don’t obtain their copper and aluminum straight from the source. There’s an efficient supply chain, which moves ore from the mines to the end consumer, but Apple doesn’t want to play that game and bid, along with other Smartphone manufacturers, like Samsung, for cobalt.
Wealth Research Group has created a micro-documentary that goes as far back as a year ago, regarding the fact that cobalt is the world’s hottest commodity.
We covered a Canadian company, which made aggressive acquisitions and soared from CAD$0.62 to CAD$1.65 before we alerted to take profits. That trade generated gains of 160% in several months, which translates to 283.1% annualized.
Since then, I’ve looked at getting back into the cobalt sector.
The price of cobalt has gone through the roof in the past three years, since the supply for the world’s Smartphone companies is in jeopardy.
There are two main reasons for this:
- An estimated 66% of the global supply comes from the Republic of Congo, but it is a total mess over there.
I was tempted to head there myself, but my contacts explained the situation to me this way: “Now that the price of cobalt has nearly tripled, the government is more likely to renationalize cobalt. That is the elephant in the room.” To me, this says it all.
- Cobalt hasn’t been mined in decades. With all due respect to Apple and its increasing demand for cobalt, it is nothing in comparison to what the electric cars industry is gobbling up.
Apple is in a direct bidding war with the world’s biggest car companies, and frankly, the winners will be the undervalued companies, which are now locking in the most promising resource assets still available.
That’s the reason I needed to see this new deal for myself.
Also, take a close look at Darien Resources Development (TSX-V: DRR) right now!
Our team has been using a new strategy in the past 4 months. We’ve been tracking the movements of some key players in the resource sector, because it is our estimation that companies, which are actively buying copper assets, could also be pursuing the additional key minerals needed for electric vehicle batteries.
What our team has already been able to gather is that the company is about to change their name to New Energy Metals, which to me implies that their management is building a bank of assets, totally focused on satisfying the appetite of the likes of Apple Inc.
I could be jumping the gun, but if this set of existing circumstances leads to acquisitions in the key metals needed for batteries, we’re basically positioning before all the action occurs.