Diskussionsforum der stw-boerse: Auslandswerte: Formation Capital (FCO)
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Archivierte Beiträge bis 28. Januar 2007 20    8.2. - 13:28

chinaman - Mittwoch, 7. Februar 2007 - 18:51
Dear Shareholder / Interested Party,

Below please find Jennings Capital's February 05, 2007 Morning Comment Newsletter, reprinted here with their permission. The Newsletter comments on yesterday's news release regarding the completion of the Draft EIS. Comments on financing requirements, mine construction time allotments and start-up times are Jennings Capital's estimates. A more comprehensive and detailed analysis of these items, along with project economics, are expected before the end of March in the Company's NI-43-101 compliant Definitive Feasibility Study currently in progress and overseen by Samuel Engineering, Inc. of Denver, CO. This newsletter reprint is also available on our Company website at: http://www.formcap.com/s/CobaltNews.asp.

Jennings Capital Inc.
Institutional Division
33 Yonge Street, Suite 320
Toronto, ON M5E 1G4
T: 416.214.0600 F: 416.214.0177
Toll Free: 1.877.214.3303

February 5, 2007

Formation Capital Corp. (TSX-FCO C$0.56) Mkt Cap C$92 MM
Analyst: Ron Coll

Final Draft Environmental Impact Statement (EIS) Completed
Formation Capital reports that the U.S. Department of Agriculture, Forest Services Branch (the “FSB”) and other related state and federal agencies have completed the Draft Environmental Impact Statement (EIS) for the 100% owned Idaho Cobalt Project, central Idaho. The report will be printed and made available for public review and comment. Once formal notice is published in the Federal Register, the comment period begins, which can be no less than 45 days. We estimate the FSB will allow 60 days. The FSB will address all comments and proceed to the Final Environmental Impact Statement (the “FEIS”), which is anticipated in Q3/2007. The completion of the FEIS would be followed immediately by a Record of Decision that approves the Idaho Cobalt Project Mine Plan.

The above outlined schedule now paves the way for this high grade Cobalt project to advance to project financing (estimated to be in the US$80million to US$90 million area) in Q4/2007 and, allowing a 15-month construction window, start-up at 3.5 million lbs of cobalt metal/year commencing in Q1/2009. With cobalt trading in the US$25.00/lb area and projected cash costs in the US$8.00 to US$10.00/lb area, the project economics are extremely robust.

In the interim, Formation’s 100% owned precious metals refinery (located at the Big Creek Hydrometallurgical Facility in Northern Idaho) continues to build incremental business. At capacity (10.0 million ounces of silver and 350,000 ounces of gold/year), the refinery is expected to generate approximately US$1.0 million of free cash flow per year.

The much anticipated Feasibility Study for its 100% owned Idaho Cobalt Project is now expected to be released during Q2/2007. Measured and Indicated Resources (43-101 compliant) stand at 2.65 million tons averaging 0.628% cobalt, 0.619% copper and 0.016 ounces gold/ton for a contained 33 million lbs of cobalt, 33 million lbs of copper and 42,000 ounces of gold, sufficient for nine years of mine life at planned production rates. In addition to the M & I Resource, an Inferred Resources totals 1.12 million tons averaging 0.58% Co, 0.79% Cu, and 0.017ounces of gold/ton. With the conversion of only 50% of the inferred resource to M & I, the planned mine life would improve to 11 years.

At January 31, 2007, following the cash sale of a surplus tailings storage facility to Sterling Silver Corp., Formation had cash and metal in inventory of C$6.5 million and no debt.

Formation Capital remains on our Focus List for 2007.

phlipster - Donnerstag, 8. Februar 2007 - 11:13
wie gewonnen, so zerronnen? die börse nimmt die Zahlen jedenfalls nicht positiv auf...

chinaman - Donnerstag, 8. Februar 2007 - 13:28
Welche Zahlen ??? Es gibt ja noch gar keine ...

pjff - Sonntag, 11. Februar 2007 - 17:14

Notice of Proposed Issuance of an NPDES Permit to Idaho Cobalt Project, near Salmon, Idaho; public comment period: February 8 -- April 9, 2007

SUMMARY: The Director, Office of Water and Watersheds, EPA Region 10, is proposing to issue National Pollutant Discharge Elimination System (NPDES) permit No. ID-002832-1 to Formation Capital Corporation U.S. (Formation), pursuant to the provisions of the Clean Water Act, 33 U.S.C. § 1251 et seq. EPA invites public comment on the draft permit which will authorize the discharge of treated nondomestic wastewater from their proposed Idaho Cobalt Project (ICP), an underground cobalt mine, to Big Deer Creek, a tributary of the Salmon River.
The NPDES permit is a new source, as defined in 40 CFR 122.29(b), and is subject to new source performance standards. EPA's issuance of a new source NPDES permit is considered a major federal action subject to the provisions of the National Environmental Policy Act (NEPA) at 40 CFR Parts 1500-1508, and EPA's NEPA implementing regulations at 40 CFR Part 6. Along with the Idaho Department of Environmental Quality (IDEQ), EPA is participating in the Environmental Impact Statement (EIS) process for the project as a cooperating agency, with the U.S. Forest Service as the lead federal agency. The Forest Service is public noticing the draft EIS for a 60 day period concurrent with this notice of the draft NPDES permit.

The draft NPDES permit contains both technology-based and water quality-based effluent limitations for pollutants of concern, along with administrative and monitoring requirements, as well as other standard conditions, prohibitions and management practices. A fact sheet has been prepared which sets forth the principle factual, legal, policy, and scientific information considered in the development of the draft permit.

AVAILABILITY: The draft NPDES permit and fact sheet can be reviewed or obtained by visiting or contacting EPA's Regional Office in Seattle at 1200 6th Avenue, OWW-130, Seattle, Washington 98101. The draft permit and fact sheet are also available from EPA's Idaho Operations Office at 1435 North Orchard St, Boise, Idaho, 83706; and from the IDEQ Idaho Falls office at 900 N. Skyline, Suite B, Idaho Falls, Idaho, 83402. Both documents can be downloaded from EPA's internet website at www.epa.gov/r10earth/waterpermits.htm, click on "Draft Permits", then "Idaho". The Administrative Record and other supporting documents are on file at EPA's Region 10 office in Seattle, WA.

PUBLIC COMMENTS & MEETINGS: Interested persons may submit written comments on the draft NPDES permit and fact sheet within the 60-day public comment period to the attention of Robert Rau at the address or email identified above. Comments relating to EPA's NEPA compliance, and the sections of draft EIS relevant to this NPDES action, should be directed to Hanh Shaw at (206) 553-0171, or at shaw.hanh@epa.gov. All comments should include the name, address, and telephone number of the commenter, and a concise statement of the comment on the permit condition(s) and the relevant facts upon which the comment is based. Comments of either support or concern which are directed at specific, cited permit requirements are appreciated. Comments must be postmarked on or before the expiration date of the public notice.

The Forest Service and EPA will host two public meetings to present information relevant to the ICP, to answer questions, and to receive verbal comments on the draft EIS and NPDES permit. The meetings are scheduled as follows:

In Salmon, Idaho:
Wednesday, March 14th, 2007, 7:00-9:00 PM
City Center, 200 Main St.

In Challis, Idaho:
Thursday, March 15th, 2007, 7:00-9:00 PM
Forest Service Challis-Yankee Fork District Office
U.S. Highway 93 & Main St.

After the expiration date on the Public Notice, the Director, Office of Water and Watersheds, EPA Region 10, will make a final determination with respect to issuance of the permit, and will document this determination in a Record of Decision (ROD). The tentative requirements contained in the draft permit will become final conditions if no significant comments are received during the public comment period.

pjff - Dienstag, 13. Februar 2007 - 00:47
Today, FCO finally received the DEIS. The results are very positive! End this week, early enxt week press release

pjff - Dienstag, 13. Februar 2007 - 01:10
DEIS: We hope to be able to put out news this week - we need an opportunity to review the contents of the DEIS and provide our shareholders with a general assessment of the document.

Virgin River: Basically, it is a first right of offer, which means that if Cameco were to offer any percentage of the project to a third party, they must offer it to us first under no less favourable circumstances. This, in my opinion, is actually a likely scenario: If the project were to advance to the stage where a production decision were to be made, it is very feasible that Cameco would want to bring in a third party to help finance the project (as they have done in the past), in order to help mitigate risk (remember the flooding at Cigar Lake for example) as well as lessen any large cash outlay that would not be viewed as favourable on their financial statements. The third party would take on a percentage of the project in exchange for participating financially to help construct the mine. However, as we have a first right of offer, Cameco would be obliged to offer us an additional 8% before they offered an additional interest to a third party to help finance the project.

NPDES ROD: Theoretically, I believe it is possible. yes, but the NPDES permit is being drafted to come out at the same time as the Final DEIS as it is dependent on the contents of the DEIS.

Near future: Secure a mine permit, secure mine financing, and start mine construction on the Idaho Cobalt Project, as well as advance other projects that we have not been able to concentrate our resources on since the focus has been on the refinery and the Idaho Cobalt Project.

chinaman - Dienstag, 13. Februar 2007 - 05:26
@ pjff: Danke für das Einstellen der Informationen. Es wäre schön, wenn Du jeweils auch die Quellen nennen könntest bzw. Links auf die Originaldokumente setzt. Danke !


pjff - Dienstag, 13. Februar 2007 - 11:00
Quelle Dienstag: FCO management
Quelle Sonntag: EPA website

pjff - Mittwoch, 14. Februar 2007 - 13:17
1. We have never spent $9,000,000 on the refinery. Costs, in the financial
statements, include operating materials, salary and wages, power costs,
security costs, industry standard provisional payments for precious metals
deliveries, depreciation (a non cash item) and other such items. Anybody that
makes that statement is confused and does not know how to read a financial
2. Hatch was terminated by the company by unanimous decision recommended by
the feasibility team and MTB Management, our Feasibility Study Managers.
There were various concerns but one of the most important was timely
delivery of tasks. Engineering firms are currently experiencing massive
staff turnover due to poaching by other firms. Several key people at Hatch
that we expected and wanted on the project left Hatch. Replacement personnel
suggestions were not suitable to our feasibility team. Samuels brought a
very experienced technical group to support their feasibility study bid that met our
Feasibility team expectations. One last minor issue that was also solved by
changing to Samuels was a potential remote conflict that would have been declared in
the document if Hatch completed the study. One of our Directors became
Hatch's Managing Director for Major Worldwide Projects, although he had no
Hatch responsibilities for our relatively small project.

3. Formation Shareholders have voted on and approved a stock option plan.
The plan technically currently allows for 18,472,500 options to be issued
(approximately 11% of shares outstanding) provided that Directors and
Officers can't hold more than 10% of shares outstanding and no single person
can hold more than 5%. The Board of Directors (BOD) has only approved total
options outstanding of less than 5.1% of outstanding shares or 8,845,000.
All, non-hourly (hourly staff at the refinery and mine site are covered by a
different incentive system) employees of the Company, and subsidiary
Companies, that have been with the us for more than three months have
incentive stock options as part of their employment packages. Insiders
(Officers and Directors of Formation and subsidiaries, the five highest paid
employees in same and anyone with access to material inside information)
currently hold options totaling 3.5% (included in the above 5.1%) of
outstanding. I will note that the average price is around 44 cents. I will
also note that the BOD decided not to set options when the stock price was
much lower, mid last year, as they felt that this would have been inappropriate
and opportunistic.

4. We hold a 20% interest in the Kernaghan/Bell Uranium Project, a joint
venture with Areva and Cameco, as well as our 2% interest in the Virgin
River Uranium Project with the same joint venture partners. Both projects
are in the Athabasca Basin. Total exploration budgets on the two projects
this year will be over $3,700,000. We have fully funded all our obligations
for the current year.

chinaman - Mittwoch, 21. Februar 2007 - 18:37
Weiter ein "Geduldsspiel" ...

Draft EIS Indicates Idaho Cobalt Project
Demonstrates Environmental Stewardship

Vancouver, B.C., February 21, 2007, Formation Capital Corporation,
(Formation, FCO-TSX), announced today its wholly owned subsidiary,
Formation Capital Corporation, U.S. ("the Company") located in Salmon,
Idaho, reports the findings of the Draft Environmental Impact Statement
(EIS) conducted by the United States Forest Service of their 100% owned
Idaho Cobalt Project (ICP) indicate that the project is compatible with the
preservation of the environment.

“Speaking for Formation, I am delighted with the findings of the Draft
EIS,” said Mari-Ann Green, the firm’s Chairman and Chief Executive
Officer. “It confirms our long-held view that the Idaho Cobalt Project can
be constructed, operated and reclaimed with minimal environmental impacts
on the land, air, wildlife and water quality of the region. We intend to
provide some 150 good-paying jobs and produce an environmentally beneficial
product. The EIS shows we’re on the right path,” she added.

“This is a significant procedural step in the permitting of the ICP,
however the findings are equally important - especially the findings that
expected water quality changes in area streams will not be significant,
overall air quality in the project area will remain at or near present
levels, there will be no effect on endangered wildlife species, the project
is not expected to significantly affect endangered fish species or their
habitat, and there will be no impacts to wilderness resources. This holds
true under all alternatives,” she continued.

According to Bill Scales, President of Formation Capital Corporation, U.S.,
the Draft EIS identifies Alternative 4 as the Forest Service’s preferred
alternative for the project. “This alternative applies a number of
mitigation measures to Formation’s proposal, the most important are
additional improvements to area public roads to be funded by Formation,
changes in water treatment, changes to the tailings and waste rock disposal
area configuration and reclamation, and placement of additional
neutralizing materials in the underground mine workings”, Scales stated.

“Our overall assessment of the Draft EIS is that it does an outstanding job
of answering the fundamental questions which the public may have regarding
the effects of the ICP on water and other resources. The preferred
alternative with its added mitigation should lead to a higher level of
protection for the environment and that’s a good thing,” Scales added. “We
have looked at Alternative 4, and are prepared to add these mitigation
measures to our mine plan. We will be reading the Draft EIS in great
detail and may yet have some additional comments on this alternative during
the public comment period”, Scales concluded.

The public comment period will last 60 days from the day the Draft EIS is
published in the Federal Register. It is currently expected that the Draft
EIS will be published on February 23, 2007, thus commencing the 60 day
public comment period, now expected to end on April 24, 2007. It is
estimated that an additional 60 – 90 days, will be needed for the Forest
Service (FS) to review the public comments and prepare the Final EIS and
Record of Decision (ROD) which is expected, as reported by the FS, by Q3 of

The ROD is a document in which the FS will select an alternative for the
Idaho Cobalt Project that would incorporate the Company’s Mine Plan of
Operations as well as any design changes, mitigation measures or other
changes which the FS might deem appropriate.

Subsequent to issuing the final EIS and ROD, there is an appeal period. If
there are no appeals, the Company would then modify its Plan of Operations,
as directed in the FS’s ROD and acquire the necessary permits before the FS
could approve the Mine Plan of Operations allowing the project to commence
construction. In addition, the Company must post the appropriate
reclamation bonds before construction.

In the event that there are appellants, an appeal resolution process would
take place, subsequent to which the Company would submit its modified Plan
of Operations for approval.

The draft EIS is available from the Forest Service web site at
and at
The public is invited to review and comment on the document. All comments
should be sent to Mr. Bill Wood, Salmon-Challis National Forest, 1206 S.
Challis St. Salmon, ID 83467.

Formation Capital Corporation

“Mari-Ann Green”

pjff - Montag, 26. März 2007 - 18:41
- Public Shows Support at Forest Service Public Meetings on Idaho
- Cobalt Project's Draft Environmental Impact Statement

Formation Capital Corporation (Formation) (the Company) reported the
public meetings held by the United States Forest Service (USFS) on the
Company's proposed Idaho Cobalt Project (ICP) produced a broad display of
public support for the project and the jobs it will create at recent
hearings conducted in Salmon and Challis, ID, on the draft Environmental
Impact Statement (EIS) for the project.

According to Bill Scales, president of Formation Capital Corporation,
U.S., the economic contributions of the environmentally sound mine are
projected to include over US $8 million in annual local, state and Federal
taxes generated from the mine and result in the creation of 157 well paying
jobs in Lemhi & Custer counties.

"A large number of local citizens showed up at our hearing to testify
in support of our project and the economic opportunities it will create for
both Lemhi & Custer counties," said Bill Scales. "We want to further
encourage all those who attended to submit their comments in writing to
ensure the Forest Service's record of decision reflects their thoughts," he
said, noting that, "The deadline to submit comments is April 24, 2007."
Scales added the Company was pleased by the turnouts in both Salmon and
Challis at the Company's two informational meetings as well as the USFS
hearing. He pointed out that while the USFS prefers specific comments or
issues relating to the Draft EIS, it nonetheless accepts generic comments.

"The facts are there and it is easy for all to see. Not only will this
mine add a much needed boost to the local economies, but it will do so in
an environmentally sound manner while producing a metal vital to many
environmental applications," Scales stated, adding, "We are gratified to
see the public backing the project first hand, further supporting the views
of the public that were outlined in a previous opinion poll."

In December of 2005, Moore Information of Portland, Oregon conducted a
telephone survey opinion poll that consisted of 300 interviews among a
representative sample of Lemhi county residents 18 years and older. The
poll revealed that the economy and jobs were the most important issues on
the mind of Lemhi county residents. The survey indicated that after being
read a set of facts about the cobalt project, those favoring the project
jumped to 84% from 73% with opposition dropping to 6% from 9%.

pjff - Montag, 26. März 2007 - 18:43
It isn't as hot as Uranium or as precious as Gold but cobalt's profile will continue to grow the coming months and years. The price has almost doubled from US$16 - $30 per pound these past few months due to supply issues and steady buyers. The issue at hand for investors though, is that there are precious few public cobalt companies.
It is becoming apparent that there is huge potential for companies positioned to provide a stable supply of cobalt. Demand is increasing into what is a very tight physical market, and there is real fear that current supply could be constricted.
This is from a recent story from www.metal-pages.com: ""It's just been non-stop," said one London trader."This January is the busiest in 30 years." He has paid $26.25 for Russian metal, predicting the shortage of stocks will send prices higher still. Consumers are so desperate for metal they are calling him at 11 in the evening, he said. He predicted cobalt prices will rise above $30 before the end of the month."

The only cobalt-focused companies on my radar screen are Geovic Mining Corp (GMC-TSXv) developing its open pit cobalt-nickel deposits in Cameroon, Africa, and (FCO-TSXv), developing a cobalt deposit in Formation Capital Idaho.

Cobalt inventories are low - one source suggested only a few days' supply. Cobalt is used extensively in batteries for hybrid cars (both nickel and lithium ion) and many electronic devices - cell phones, laptops etc., all of which are experiencing increasing sales. Inventories are low around the world, at a time when demand is picking up.

Since 1993 cobalt prices were held down largely by sales from the U.S. Government stockpile, and lower grade cobalt material coming from the former Soviet Union. With these sources depleting, the market has little inventory to draw from, now relying primarily on new production.

In late 2006 Russia-based Norilsk, already accounting for 20% of the world's nickel and cobalt production, announced the buyout of U.S.-based OM Group's (OMG) substantial nickel interests. OMG was the world's largest producer and manufacturer of cobalt products as a by-product of their nickel production. Now, Norilsk controls a much larger slice of the pie, and the market remembers their recent resolve to withhold supply in an effort to buoy cobalt prices.

As part of their takeover agreement, Norilsk entered into a 5-year supply agreement with OMG to provide them with 6,500 mt/yr of cobalt in various grades, but there is uncertainty about how OMG will distribute these diminished supplies. The cobalt market is increasingly nervous that spot supplies will stall; when the Norilsk-OMA agreement was announced, market-savvy cobalt consumers immediately tried to increase stockpiles.

Then BHP Billiton stopped selling cobalt. Though it only controls two per cent of the market, that move quickly strengthened an already tight physical market. The market's reaction to these events, coupled with already substantial and further expected increases in demand, drove the cobalt price from US$16 to nearly US$30 per pound during the last four months of 2006.

Although there is no tertiary market for cobalt like the LME or COMEX, price transparency is provided by quotations through sources like Platt's Metal Week, Metal Bulletin and BHP Billiton's Cobalt Open Sales Systems at http://cobalt.bhpbilliton.com/... Additional cobalt information is also available from the US Geological Survey (http://minerals.usgs.gov/minerals/pubs/commodity/cobalt/))) and The Cobalt Development Institute (http://www.thecdi.com/)...

Users obtain cobalt from traders, producers, government stockpiles and private inventories through negotiated agreements, bids and open market purchases.

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