First, PLM stock tripled essentially overnight in early June. 1125 N. Charles St, Baltimore, MD 21201. Then, on March 23, the Minnesota Court of Appeals remanded NorthMet’s air permit. Still, PLM stock is essentially a highly-leveraged play on the global economic recovery, with some legal hurdles. Nicknamed the “growth-to-fear” index, this ratio dropped to It has since rebounded, but to levels that are still below what has been the bottom-end of the ratio over the past several decades.As such, if the current economic recovery persists, then global fear should ease, and global growth should pick-up. quotes delayed at least 15 minutes, all others at least 20 minutes. About two-thirds of the world’s cobalt comes from the Democratic Republic of Congo.
Gold prices, meanwhile, are often tied to the amount of fear in the world. Alongside Minnesota's PolyMet, Glencore has invested in Canada's First Cobalt Corp to restart an Ontario refinery
So if the economic recovery persists, then big gains in PLM stock will persist, too.As mentioned earlier, copper prices are tied to global economic activity. For each minor increase in copper price, PolyMet’s per pound profit margins at its NorthMet project increase by a bunch. BARCELONA, SPAIN - JUNE 29: Tesla super charger station in Catalunya on June 29, 2018 in Barcelona, From large facilities to electric vehicles powered by Tesla batteries, one of the main things they have in common are the origins of a key component called cobalt. The court cited concerns that the size and scope of the mine were more than what was proposed in the permit.In sum, these catalysts have sprung life back into PLM stock.In my view, PLM stock is – first and foremost – a high-risk, high-reward play on the economic recovery. And the company’s growth prospects have significantly improved as a result. This is true even with a potential supercharged PolyMet is a Minnesota mining company that has obtained permits to develop a poly-metallic mining project, dubbed NorthMet, in northeastern Minnesota, with a focus on copper mining.
Most of these involve regulators questioning the environmental and social friendliness of the mine.Copper prices – which closely track global economic activity because the metal is used in so many industrial end-markets – also plunged in early 2020 thanks to the Covid-19 pandemic. One of the most closely watched economic indicators is the copper-to-gold price ratio.
Tesla plans to use 6,000 tons (12,000,000 lbs) of Glencore's cobalt in its new gigafactories. All rights reserved. Cobalt prices have shrunk I am the CEO of CultureBanx covering the intersection of business, technology and innovation for minorities. That big increase, over millions of tons of ore produced every year, adds up to a huge rise in the value of the NorthMet project.In other words, every minor increase in copper prices will lead to a huge increase in the value of the NorthMet project, and in turn, PLM stock.If copper prices rise to $3.50 and PolyMet is legally cleared to mine all measured and indicated resources at NorthMet, then the net present value of the NorthMet project using a 7% discount rate is That is more than seven-fold the current market cap for PolyMet stock.Tesla needs cobalt to power its electric-vehicle revolution. Second, global mining giant Glencore – which owns a 72% stake in PolyMet – signed a major, long-term cobalt deal with Tesla (NASDAQ: TSLA) … It’s possible that Glencore and Tesla’s latest supercharged battery deal could put the future stability of Africa’s sustainable cobalt supply in reverse. Prior to joining CNBC, I was an international producer for Bloomberg TV and a financial correspondent for TheStreet.com. PolyMet Mining on Friday finalized the results of a stock offering that makes Swiss mining giant Glencore the majority owner.
That didn’t help PLM stock.Heading into June, shares were more than 40% off their early 2020 highs.First, those regulatory headwinds holding up mine development showed signs of easing.Specifically, the NorthMet project had been rewarded an air permit from the Minnesota Pollution Control Agency (MPCA). And – more importantly – is PLM stock a buy?In short, a lot has happened at PolyMet in June. Tesla currently has 1,280 super charger stations throughout the world and are adding more locations through a host program. https://www.cnbc.com/2020/06/16/tesla-glencore-cobalt-gigafactory.html. I was raised in investment banking while working at UBSI am the CEO of CultureBanx covering the intersection of business, technology and innovation for minorities. I was raised in investment banking while working at UBS internationally and Goldman Sachs in the states. Assuming so, As a junior copper miner, PLM is a highly leveraged play on rising copper prices. PLM stock has struggled because development of the mine has been delayed by regulatory disputes. As a board member for Brooklyn Center for the Performing Arts, I’m proud to be part of a generation of emerging arts supporters.Opinions expressed by Forbes Contributors are their own.I’m the CEO of CultureBanx, redefining business news for minorities. But the sourcing of cobalt has been a human-rights issue for several years. Copyright © 1125 N. Charles St, Baltimore, MD 21201. PolyMet is on the verge of building Minnesota’s first copper-nickel mine, and now it has a new — and controversial — owner.
All rights reserved.
Any positive news on this front will undoubtedly help PLM stock.PLM stock isn’t for the faint of heart.
Copyright © 2020 InvestorPlace Media, LLC. Glencore bought a majority shares of PolyMet ($PLM) for their 3100 tons (6,200,000 lb's) of Cobalt last year. It’s a wild card which remains in play today. And, NorthMet – a Minnesota mine that is miles away from child-labor issues – is projected to produce a significant amount of cobalt.To that end, could PolyMet turn into Tesla’s cobalt supplier within the next few years?Maybe. The head office of Glencore is located at Baarermattstrasse 3, CH …
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