How many junior mining companies are seeing an increase in cash these days? What if it's a NON-DILUTIVE cash infusion? Even better!

Geovic Mining Corp (GMC-TSX) actually increased its cash position by US$7 million to US$73.3 million in Q3 2008, ending September 30.Geovic's quarterly news release read "The increase was principally due to a $15.2 million minority interest contribution from the Cameroonian shareholders, who have contributed approximately $20 million to Geovic Cameroon Plc ("GeoCam") through September 30th."

So that is great news for their shareholders.

Just as wildly implausible – their stock responded! It went up! To reflect the new cash value. You might not think that is a big deal, but it is. There are many companies trading well below their cash value. In this market, every asset is a liability. It's just something that drains cash. Assets that don't produce cash flow have NO value. There is no value for metal in the ground.

Listen to our interview with CEO Jack Sherborne of Colorado-based Geovic Mining. We recently covered Geovic in a research report and we still love this story.

Malcolm Bucholtz B.Sc, MBA Analyst

Trading Note

Cobalt – This High Tech Metal is Starting to Shine

Cobalt has been around for years, but up until recently it has been largely ignored by traders and investors who apparently did not stop to consider that Cobalt has a myriad of applications in things like high temperature magnets, rechargeable batteries in hybrid cars, high strength steels, carbides, catalysts for petroleum refining and gas-to-liquid technology, catalysts for automotive exhaust systems and of course super alloys. It is this latter category that requires the vast majority of Cobalt. The next time you are on a plane taxiing down the runway, stop for a moment and think that the turbine blades in a typical jet engine require up to 130 pounds of Cobalt.(1)

But, focus is now starting to shift to this high tech metal as the markets figure out that it is vital to so many applications. And what caused this shift? The DRC – that’s what. As South Africa is to Gold and Platinum and as Chile is to Copper, so too is the Democratic Republic of the Congo (DRC) to Cobalt. In 2007, the DRC accounted for nearly 40% of 64,000 t global Cobalt supply. But the DRC is a political mess to put it bluntly. Years of civil war have seen the Cobalt mining industry fall behind as investment capital to develop new resources went to safer locales around the world and into other metals.

Now to add to the DRC woes, the Deputy Minister of Mines has launched an investigation of all mining contracts in the country. Chances are that many will be revoked. As well, legislation has now been passed in Katanga Province that says Cobalt can only be exported in its refined form. This has dealt a severe blow to countries such as China, India, Norway, Finland and Belgium that have all been relying on unrefined concentrate from the DRC to feed their Cobalt refineries. There is one refining plant in Katanga Province (Gecamines facility) that in theory could be refurbished at a capex cost of $60 million. But, given the political uncertainties, what investment banking syndicate in their right minds would consider placing capital at risk in the DRC?

Even if Gecamines did get refurbished, its output capacity is probably not enough to meet global demand which would then dictate that other plants would have to be built. The risk and time frame again would prove to be major obstacles in sourcing capex funding. Bottom line – the DRC can no longer be relied on as a source of Cobalt. Sad, but true.(2) As a result of events in the DRC, the global Cobalt market experienced a deficit in 2007 and it now appears that this deficit will continue for the next several years. As the following chart shows, this has driven a huge increase in price. Spot Cobalt right now is trading at about $49/pound up from $30/pound in late 2007.

Enter – Geovic Mining and Cameroon

May 20, 2008 – Geovic Mining Corp. ("Geovic" or "The Company", TSX:GMC), on behalf of its 60%-owned subsidiary Geovic Cameroon PLC (GeoCam), is pleased to announce three key appointments as it rapidly moves toward construction of its Nkamouna Cobalt-Nickel-Manganese project in Cameroon, Africa.

Johann du Preez has been appointed Construction Manager, and is charged with overseeing all major construction at Nkamouna, currently scheduled to commence in late 2008. Mr. du Preez has more than 30 years experience as a construction manager, principally with African mineral processing plants and infrastructure improvements. He has overseen 18 separate projects totaling U.S. $5.4 billion, last working as resident construction manager at the Kolwezi copper/cobalt project in the Democratic Republic of Congo. As Kolwezi is expected to be one of the world's largest copper/cobalt processing plants, Mr. du Preez is uniquely qualified to enhance the engineering and design of Nkamouna, and subsequently lead its construction effort.

Anthony Mills has been appointed Engineering Project Manager to serve as GeoCam's primary liaison and representative to the engineering and design Alliance, consisting of Bateman International Projects BV, Roberts & Schaefer Australia Pty. Ltd., and Group Five Projects Pty. Ltd.. The Alliance is principally based in Brisbane, Australia where Mr. Mills recently located, and is continuing under a Professional Service Agreement that has been extended until negotiations are complete on a comprehensive engineering, procurement and construction management agreement between the Parties. Mr. Mills has more than 40 years of experience in project management, engineering, and construction, including more than 30 years with mining and mineral processing projects. Mr. Mills previously served as Project Manager with engineering and construction companies specializing in the mineral industry, including Fluor, Mineral Resource Development Inc., and Kvaerner.

Andrew Ramcharan has been appointed Manager, Technical Services, based in the Company's home office in Grand Junction, Colorado. His primary responsibility will be optimization of the Cameroon mining plans, and secondarily to assist Geovic in the evaluation of new projects. Mr. Ramcharan has more than 10 years experience as a Mining Engineer/Analyst, specializing in three-dimensional geologic modeling, resource/reserve estimation, and all aspects of project planning/execution. A graduate of and PhD candidate from the Colorado School of Mines, he has already worked on more than 50 projects in five continents.