Electra Battery Materials Corporation (OTCMKTS:ELBMF) dropped 10% after revealing that construction efforts are on schedule at the company’s fully integrated cobalt sulphate refinery. The Electra Battery Materials Park, located north of Toronto, will house nickel and cobalt sulfate production units and a sizable lithium-ion battery recycling plant and the manufacture of battery precursor components for North American and international clients.
Market Reaction
On Thursday, ELBMD stock fell 10.10% to $4.55 with more than 90K shares, compared to its average volume of 35K shares. The stock moved within a range of $4.5200 – 5.1900 after opening trade at $5.19.
Electra Battery says construction at North America’s only cobalt sulfate refinery continues on schedule
Electra stated it had secured commitments for 52% of its $67 million financial plan, including amounts already spent. The Canadian firm hopes to reach a 70% commitment threshold in the next month, with the whole project on schedule.
The company said in an update that pandemic-induced restrictions have been putting pressure on supply chains and projects development, but construction activities at the refinery have been on schedule. Also, Electra has been monitoring and managing the risks with its services and equipment suppliers, and the project is on schedule to commence for commissioning sometime this year. So ELBMF is worth watching.
Key Quote
“Construction activity at the refinery continues on schedule. Coronavirus (COVID-19) restrictions in certain parts of the world as well as recent global geopolitical events are putting pressure on supply chains and development projects,” said the company in an update.
Traders Review
ELBMD stock is trading above the 50-Day and 200-Day Moving averages of $4.30 and $4.35 respectively. However, the stock is trading below the 200-Day moving average of $4.62. The stock is up 10% over the past month.
