Cobalt Prices Continue To Rachet Up

Cobalt price reaches U.S.$ 49.25/LB.



Cobalt prices have continued to move steadily higher in a trend that has seen the price of Cobalt almost double since January 2007. Cobalt mining companies and cobalt resource companies stand to reap the rewards of these higher prices if they persist.

One such company is Caledonia Mining (CALVF). Although Caledonia Mining is a penny stock, it's potential to become a major player in the industry seems to be real. As I previously wrote about in this article "Cobalt and Caledonia Mining (CALVF)", Caledonia has a massive cobalt deposit called the Nama Cobalt Project.

This property alone has an estimated resource of 114,561,560 lbs of cobalt plus other base metals including copper and nickel.

Caledonia recently signed Cobalt Off-take Agreement with Large Chinese Refiner. The price of Caledonia shot up on the news in heavy trading from 10 cents to 20 cents U.S. It has been consolidating it's gains and is now trading at around 15 cents U.S. per share.

CALVF - Caledonia Mining Weekly Chart

CALVF Daily Chart - Caledonia Mining

CALVF consolidating after breakout.

CALVF: Can you say "BREAKOUT" ??????

With the announcement of a Cobalt off take agreement with a large Chinese refiner, Caledonia has broken out with a massive one day rise of 64%. This chart is highly bullish. Are you on board?

Caledonia Mining (CALVF) - Time to Capitalize on Cobalt?

I recently wrote about Caledonia Mining and it's Nama Cobalt Property. By my calculations, I determined that the value of the Nama deposit alone was worth over $6 billion U.S. I also noted that Caledonia had many other properties that would take the value of CALVF well over the $6 Billion mark.

Today, Caledonia released news that they had signed a Cobalt Off-take Agreement with Large Chinese Refiner.

The stock has responded quite favorably and as I write this, it is up over 60% in price. It closed yesterday at $0.103 per share and has traded as high as $0.20 per share, a 100% gain in 1 day.

I previously mentioned that "It has had two massive run ups in share price. In 1986 it rose from under $1 to over $7 in just over 1 year. Then in 1994 it rose from under $1 to over $9 in less than 1 year.

Now, as a shareholder of CALVF, I wonder how high it will run on this latest development with it's Nama Cobalt Property.

As I close out this post, I note that Caledonia Mining Corporation (CALVF) is trading at $0.177 per share. This is a one day rise in price of over 71%.

Daily Chart of CALVF

Caledonia continues to be under pressure of downtrend. Seems that buying is coming in at the $0.10 level which is strong support.

Caledonia Downtrend Remains In Tact

CALVF Daily Chart

CALVF - Caledonia Mining Chart - Weekly

Cobalt and Caledonia Mining (CALVF)

Cobalt prices have been on the rise lately. In fact, they have increased from around $15/lb to over $45/lb since November 2006. This chart only shows activity through December 2007, but if you check the current sales price at BHP Billiton, you will see that they are currently making cobalt deliveries at $46.25/lb. Not a bad increase. In a little over a year, cobalt prices have basically tripled. This should be good news for cobalt mining companies or cobalt miners with significant cobalt resources.

(Update 1/10/08, Cobalt price is up to $47.50 today)

One such company is Caledonia Mining (Symbol: CALVF)

CALVF currently trades at U.S. $0.113 per share. Obviously it is a penny stock.

Caledonia has a diverse compilation of properties that include gold, base metals and diamonds.

Caledonia's cobalt property is called the Nama Cobalt Project.

The NI-43-101 technical report concluded that the combined Indicated Resource for Anomalies A and C at Nama is estimated as 121,874,000 tonnes with a weighted average grade of 0.047% Co and 0.043% Cu. The Nickle portion is approximately 0.015%.

This is only one of Caledonia's many properties. This property alone has an estimated resource of 114,561,560 lbs of cobalt, 104,811,640 lbs of copper and 36,562,200 lbs of nickel. At today's prices of $46.25/lb for cobalt, $3.27/lb for copper and $13.26/lb for nickel, this is a total value of $6,126,020,985 U.S. dollars.

Caledonia has fully diluted shares totalling 590,273,165. This would put a value of current resources at $10.38 per share just for the Nama project.

This does not include its currently producing gold mine, the Blanket Mine, that has proven and probable gold of nearly 500,000 ounces with inferred gold resources of nearly as much.

Nor does it include its other gold, diamond, platinum and other base metals projects.

Take a look at this long term chart of Caledonia and you will see it has the potential to explode in price in a short matter of time.



It has had two massive run ups in share price. In 1986 it rose from under $1 to over $7 in just over 1 year. Then in 1994 it rose from under $1 to over $9 in less than 1 year.

The question is, does it have another run coming? I don't know. But, I do own 69,300 shares of CALVF and would love to see it make another big run. Be sure to do your own due diligence as these are numbers that I calculated based on information on Caledonia's web site. Remember to invest at your own risk. Penny stocks can make huge gains but can also make you lose all or substantially all of your investment as well.

CALVF CHART

This is an updated weekly chart of CALVF. The tag CALVF has all Caledonia Mining posts.

Caledonia has been extremely weak for a long time. It continues lower for now.

I own shares of CALVF.

Caledonia Mining Chart (CALVF)

Sterling Mining Falling Wedge

I recently posted some charts on Caledonia Mining (CALVF) with a bullish falling wedge. Well, it did not break out, but it did go lower.....

What will happen with SRLM? I am looking for a breakout higher again.

A look at this year in charts

This year has come to an end. What does next year have in store? Let's take a look.

Silver and gold ended the year on a down note.

The Dollar and Bonds ended the year on an upward note.

Inflation is heating up.

The United States continues to print too much money and spend it on useless wars.

The Republicans and Democrats continue to keep a lock on power and corruption as the U.S. citizens are too stupid to figure out that they have been duped for years now. There are no Republicans or Democrats (except for Ron Paul who is a Real Republican). There are only Demopublicans. As long as the two party system remains in place expect more spending, war, entitlements, corruption and a decline in the standard of living of Americans.

A big thank you to Downsize DC and Ron Paul. These are two worthy organizations that are actually trying to do something about our absurd political and economical condition. Please visit them and support them and you can make a difference too.

A happy New Year to all.

Chart Review Below:

Caledonia Mining Update

CALVF broke below $0.10 breifly and is hanging around at $0.10 today. It has not broken free from the falling wedge and we have not seen a positive crossover on MACD. It looks like this pattern must be resolved in the relatively near future. I'm thinking it will be breaking out higher. I own shares of CALVF.

Caledonia Mining Continues Lower

Caledonia mining is a penny stock that I own. At this time on the weekly chart it continues to plod lower into what I think is a bullish falling wedge. I am looking for CALVF to break out to the upside on the weekly chart by closing above the current downtrend line.




Take a look at this long term chart below. You can see that two times Caledonia stock has taken off to incredible heights in a relatively short period of time. Is another blast off just around the corner? With gold and base metals heading higher this would seem to be the perfect time for CALVF to soar.



Or, will it continue to underperform as it has for a long time? Caledonia has a whole lot of shares outstanding.

Another Caledonia Mining Chart...



Bullish falling wedge?

A look at Caledonia Mining Corp.

CALVF.OB looks like it may be setting up for a breakout. It seems to have fairly strong support around $0.10 and has been known to rise rapidly once it breaks out.





I'm looking for a break out above the downtrend line on heavy volume. (Disclaimer: I own shares of CALVF)