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Welcome to the August 2023 cobalt miners news.
The past month saw continued weak cobalt prices and news that Glencore may reduce production or stockpile cobalt. Jervois Global has its projects on hold showing at current cobalt prices there is minimal incentive for juniors to start up production. These are usually the signs of a bottoming market as we saw in 2019 and 2020. We will see what happens in 2024. Looking out to the second half of the decade cobalt demand is expected to outstrip supply.
As of August 24, the cobalt spot price was at US$14.84/lb, about the same as US$14.85/lb last month. The LME cobalt price is US$32,470/tonne. LME Cobalt inventory is 93 tonnes, the same as the 93 level from last month. More details on cobalt pricing (in particular the more relevant cobalt sulphate), can be found here at Benchmark Mineral Intelligence or Fast Markets MB.
Cobalt spot prices - 5-year chart - USD 14.85 (source)
Mining.com
Cobalt supply and demand forecast - Deficits growing from ~2025/26 (forecast as of 2023 by Cobalt Blue, Benchmark Mineral Intelligence, & Rho Motion) (source)
Cobalt Blue, BMI, Rho Motion
Trend Investing v IEA demand forecast for EV metals (Trend Investing) (IEA)
Trend Investing & the IEA
2021 IEA forecast growth in demand for selected minerals from clean energy technologies by scenario, 2040 relative to 2020 - Increases Of Lithium 13x to 42x, Graphite 8x to 25x, Cobalt 6x to 21x, Nickel 7x to 19x, Manganese 3x to 8x, Rare Earths 3x to 7x, And Copper 2x to 3x
IEA
2022 - BMI forecasts we need 330+ new EV metal mines from 2022 to 2035 to meet surging demand - 62 new 5,000tpa cobalt mines (drops to 38 if include recycling)
BMI
On August 9 Reuters reported:
Glencore stockpiled cobalt in first half to support prices......."There is still a surplus in the market," Nagle told analysts in a call after the company's half-year results. "Taking action is something we have done before and it is something we will consider in the future...(It) could be lower production or stockpiling for a period of time or a combination."
On August 15 Reuters reported:
Surpluses, low prices to remain a feature of cobalt market. Surging supplies of cobalt from Indonesia and Africa are forecast to outpace demand from electric vehicles, generating large surpluses over the next few couple of years which will keep prices of the metal under pressure. Throwing the spotlight on the deteriorating outlook was London-listed miner Glencore (GLEN.L), which last week said it would consider adding to its cobalt stockpiles and cut production to support cobalt prices.
Glencore [HK:805] [LSE:GLEN] (OTCPK:GLCNF)
On August 8, Glencore announced:
2023 half-year report... Adjusted EBITDA of $9.4 billion, cash generated by operating activities of $8.4 billion and Net income attributable to equity holders of $4.6 billion... Net debt finished the period at $1.5 billion...
On August 8, Glencore announced:
Share buy-back programme... of an aggregate value of USD1.2 billion (the "Programme"), subject to market conditions, with intended completion by the time of the Group's full year results announcement in February 2024. The Programme will be effected in accordance with the terms of the authority granted by shareholders at the 2023 AGM. The Programme's purpose is to reduce the capital of the Company. It is currently intended that any Shares purchased will be held in treasury.
On August 9 Reuters reported: "Glencore stockpiled cobalt in first half to support prices..."
CMOC Group Limited [HKSE:3993] [SHE:603993] (OTCPK:CMCLF) (formerly China Molybdenum)
No significant news for the month.
Zheijiang Huayou Cobalt [SHA:603799]
On August 10, Zheijiang Huayou Cobalt announced:
Huayou Cobalt and LG Energy Solution join forces to establish battery closed-loop partnership.....With the aim of creating an unbroken closed-loop system spanning the entire lifecycle of lithium batteries and fostering stronger collaboration along the industrial chain.......
Jinchuan Group International Resources [HK:2362]
On August 8, Jinchuan Group International Resources announced:
Operational update for the six months ended 30 June 2023.....In 2023 1H, the Group's mining operations produced 30,200 tonnes of copper content included in copper cathode, copper concentrate and copper-cobalt concentrate (six months ended 30 June 2022 ("2022 1H"): 28,789 tonnes of copper content included in copper cathode and copper concentrate) and 1,364 tonnes of cobalt content included in cobalt hydroxide and copper-cobalt concentrate (2022 1H: 2,603 tonnes of cobalt content included in cobalt hydroxide).....The Group's mining operations generated revenue from sales of copper of approximately US$221.0 million (2022 1H: approximately US$234.5 million), representing approximately 6% year-on-year decrease compared to 2022 1H, and generated revenue from sales of cobalt of approximately -US$1.5 million (including approximately US$3.6 million from sales of cobalt in the 2023 1H and a downward revision of provisional price previously recognised of approximately US$5.1 million due to the drop in Metal Bulletin ("MB") cobalt price in 2023 1H) (2022 1H: US$130.8 million). Moreover, the revenue generated from trading of externally sourced mineral and metal products amounted to approximately US$107.6 million, representing a decrease of approximately 38% as compared to approximately US$174.1 million in 2022 1H.
On August 18, Jinchuan Group International Resources announced: "....interim results for the six months ended 30 June 2023....." (the result was a net loss of ~US$10m)
Chemaf (subsidiary of Shalina Resources)
On August 2 Bloomberg reported: "Trafigura's $600 million cobalt play faces cash crunch in Congo." Highlights include:
GEM Co Ltd [SHE:002340]
No significant news for the month.
Investors can read more about GEM Co in the Trend Investing article: "A Look At GEM Co Ltd - The World's Largest Battery Recycling Company".
Eurasian Resources Group ("ERG") - private
ERG own the Metalkol facility in the DRC where ERG processes cobalt and copper tailings with a capacity of up to 24,000 tonnes of cobalt pa.
No news for the month.
Umicore SA [Brussels:UMI] (OTCPK:UMICY)
On July 28 Umicore SA announced: "Half year results 2023." Highlights include:
Sumitomo Metal Mining Co. (TYO:5713) (OTCPK:STMNF)
On August 7, Sumitomo Metal Mining Co. announced: "Consolidated financial results for the first quarter ended June 30, 2023 [IFRS]....."
MMC Norilsk Nickel [LSX:MNOD] [GR:NNIC] (OTC:NILSY)
On August 2, MMC Norilsk Nickel announced: "Nornickel reports 1H 2023 interim consolidated IFRS financial results." Highlights include:
Nornickel placed five-year RUB 60 billion exchange-traded bonds."
Sherritt International [TSX:S] (OTCPK:SHERF)
On July 26, Sherritt International announced: "Sherritt reports Q2 results and strong liquidity from Cobalt Swap." Highlights include:
Nickel 28 [TSXV:NKL] [GR:3JC] (OTCPK:CONXF)
On July 26, Nickel 28 announced: "Nickel 28 releases Ramu Q2 2023 operating performance." Highlights include:
Investors can view the company presentations here.
Electra Battery Materials [TSXV:ELBM] (ELBM)
On August 11, Electra Battery Materials announced:
Electra closes private placements for gross proceeds of $21.5 million, including exercise of over-allotment option.....
On August 17, Electra Battery Materials announced:
Electra reports Q2 2023 results and provides update on Cobalt Refinery Project and Black Mass Recycling Trial."
Highlights include:
Net income for the period was $12.0 million or $0.33 per share. The totals were driven by a gain of $14.4 million of fair value adjustments relating to the 2028 Notes and unrealized derivative financial liability gain.
Operating loss for Q2 2023 was $4.5 million, up from $3.9 million for Q2 2022. The increase was driven by higher compensation costs due to more staff and higher legal and professional fees, and partially offset by lower exploration costs for Iron Creek.
Held cash and marketable securities of $7.4 million as at June 30, 2023, down from $12.9 million as at March 31, 2022......
Progressed with the first plant-scale recycling of black mass material in North America using Electra's proprietary hydrometallurgical process. Progress in Q2 was marked by high recoveries of critical metals, including lithium, nickel, cobalt, copper, manganese, and graphite, needed for the EV battery supply chain, and the production of high-quality nickel-cobalt mixed hydroxide, graphite, and lithium carbonate products.
Released highlights of a desktop scoping study[1] focused on evaluating the economics of developing a modular process plant initially capable of processing 2,500 tonnes of black mass material per year. The scoping study determined that:
- The capital spend is estimated at $8.1 million ($US6 million)
- The internal rate of return is estimated at 127%.
- EBITDA is estimated to be in the range of US$9.6 to US$12.6 million per year beginning with the first full year of operations.
- The payback period is estimated at between one and two years.
Released highlights of a re-baseline engineering report focused on determining the capital spend requirements for completing construction of a cobalt refinery complex capable of producing 5,000 tonnes of cobalt contained in sulfate per year.....The total capital spend for completing the refinery project is currently estimated at $155 to $167 million of which $81.7 million of capitalized development costs have been incurred to date.
Signed a memorandum of understanding with the First Nation-owned Three Fires Group to form a joint venture focused on the recycling of lithium-ion battery waste in Ontario......"
Highlights Subsequent to Quarter End
Investors can view the company presentations here and a Trend Investing article on Electra here.
Jervois Global Limited [ASX:JRV] [TSXV: JRV] (OTCQX:JRVMF) [FRA: IHS] (formerly Jervois Mining)
On July 27, Jervois Global Limited announced: "Jervois Global Limited quarterly activities report to 30 June 2023." Highlights include:
Jervois Finland:
Idaho Cobalt Operations ("ICO") in the United States ("U.S."):
São Miguel Paulista ("SMP") nickel and cobalt refinery in Brazil:
Corporate:
On August 2, Jervois Global Limited announced: "Jervois commences drilling on its Sunshine deposit adjacent to ICO; costs refundable by the U.S. Department of Defense." Highlights include:
On August 2, Jervois Global Limited announced: "Jervois commences U.S. cobalt refinery site selection; costs refundable by U.S. Department of Defense."
On August 18, Jervois Global Limited announced: "Interim condensed financial report for the half-year ended 30 June 2023....."
On August 21 Fastmarkets reported:
Jervois Global 'moderates' Sao Miguel Paulista refinery restart; moves to re-align project portfolio...... Jervois Global has decided to consider purchase offers for its Nico Young nickel and cobalt project located in New South Wales, Australia, as part of an ongoing portfolio review....... "The full reactivation of the [SMP] restart project is to be expected once we have a confirmed funding pathway".......The cost guidance of the SMP project is unchanged considering the restart decision, estimated at $65 million.......Bryce Crocker, chief executive officer of Jervois Global, has previously stated that the restart of ICO would look to only be considered if the cobalt metal price heads above $25 per lb.
Upcoming catalysts include:
Sunrise Energy Metals Limited [ASX:SRL](OTCQX:SREMF)(formerly Clean TeQ)
Sunrise Energy Metals has 132kt contained cobalt at their Sunrise project.
On July 25, Sunrise Energy Metals Limited announced: "Quarterly activities report." Highlights include:
On August 22, Sunrise Energy Metals Limited announced: "Annual report 2023....."
Upcoming catalysts include:
Investors can also read the latest company presentation here.
Ardea Resources [ASX:ARL] (OTCPK:ARRRF)
In total, Ardea has 6.1Mt of contained nickel and 386,000t of contained cobalt at their KNP Project near Kalgoorlie in Western Australia. Ardea is also exploring for gold and nickel sulphide on their >5,100 km2 of 100% controlled tenements in the Eastern Goldfields region of Western Australia.
On July 27, Ardea Resources announced:
Quarterly operations report for the quarter ended 30 June 2023..... $10.6M cash-at-bank, no debt, tight capital structure, and supportive share register seeking development of the Kalgoorlie Nickel Project (KNP).....The KNP Goongarrie Hub Pre-Feasibility Study [PFS] was completed during the Quarter and announced concurrently with a non binding Memorandum of Understanding [MOU] with the Consortium of Sumitomo Metal Mining Co., Ltd, Mitsubishi Corporation, and Mitsui & Co., Ltd (Ardea ASX announcements 5 July 2023).
Upcoming catalysts include:
Investors can read the latest company presentation here.
Cobalt Blue Holdings [ASX:COB] (OTCPK:CBBHF)
Cobalt Blue has 81.1kt of contained cobalt at their 100% owned Broken Hill Cobalt Project [BHCP] (formerly Thackaringa Cobalt Project) in NSW, Australia. LG International is an equity strategic partner.
On July 31, Cobalt Blue Holdings announced: "June 2023 quarterly activities report." Highlights include:
Strategy Update
Broken Hill Cobalt Project (BHCP) Activities
Cobalt in Waste Streams Project (CWSP) Update
Corporate
On August 3, Cobalt Blue Holdings announced: "Demonstration Plant success. Refinery Development Program launched." Highlights include:
Upcoming catalysts include:
Investors can watch a CEO interview here and a recent presentation here.
Australian Mines [ASX:AUZ] (OTCPK:AMSLF)
On July 28, Australian Mines announced: "Quarterly activities report for period ended 30 June 2023." Highlights include:
Sconi Battery Minerals Project:
On August 16, Australian Mines announced:
Organisational change. Australian Mines Limited (ASX: AUZ) (Australian Mines or the Company) advises that its CEO Michael Holmes has tendered his resignation from Australian Mines effective 13 October 2023 to pursue other interests.
Investors can read the latest company presentation here.
Upcoming catalysts include:
Havilah Resources [ASX:HAV] [GR:FWL] (OTCPK:HAVRF)
Havilah 100% own the Mutooroo copper-cobalt project about 60km west of Broken Hill in South Australia. They also have the nearby Kalkaroo copper-gold-cobalt project (optioned to Oz Minerals), as well as a potentially large iron ore project at Grants. Havilah's 100% owned Kalkaroo copper-gold-cobalt deposit contains JORC Mineral Resources of 1.1 million tonnes of copper, 3.1 million ounces of gold and 23,200 tonnes of cobalt.
On July 31, Havilah Resources announced: "Havilah-BHP Kalkaroo Work Program update." Highlights include:
Upcoming catalysts include:
Investors can learn more by reading the Trend Investing article "Havilah Resources Has Huge Potential and/or the update article. You can also view a CEO interview here, and the company presentation here.
Aeon Metals [ASX:AML](OTC:AEOMF)
Aeon Metals 100% own their Walford Creek copper-cobalt project in Queensland Australia.
On July 23 Aeon Metals announced: "Quarterly activities report." Highlights include:
Alliance Nickel Limited [ASX:AXN] (Formerly GME Resources)
Alliance Nickel own the NiWest Nickel-Cobalt Project located adjacent to Glencore's Murrin Murrin Nickel operations in the North Eastern Goldfields of Western Australia. The NiWest Project which has an estimated 830,000 tonnes of nickel metal and 52,000 tonnes of cobalt.
On July 28, Alliance Nickel Limited announced: "Quarterly activities report June 2023." Highlights include:
On August 4, Alliance Nickel Limited announced: "Stellantis Receives FIRB approval for second Tranche Strategic Placement to Alliance." Highlights include:
Investors can read a company investor presentation here.
Global Energy Metals Corp. [TSXV:GEMC][GR:5GE1] (OTCQB:GBLEF)
On August 8, Global Energy Metals Corp. announced: "Global Energy Metals JV partner identifies strongly conductive zones in geophysics at the Ranbogen Prospect, Rana Nickel-Copper-Cobalt Project, Norway."
Giga Metals Corp. [TSXV:GIGA][FSE: BRR2] (OTCQX:GIGGF) (Turnagain Nickel Deposit now held via Hard Creek Nickel Corporation [TSXV:HNC]. Giga Metals [TSXV:GIGA] retained a 85% interest in Hard Creek Nickel.
On July 24 Giga Metals Corp announced:
Giga Metals announces symbol change on OTC Markets to GIGGF......The Corporation will continue to trade on the TSX Venture Exchange ("TSX.V") in Canada under the symbol "GIGA.V" and on the Frankfurt Stock Exchange ("FSE") under the symbol "BRR2".
The Metals Company (TMC)
On July 31, The Metals Company announced:
Congressional Leaders urge President Biden and the Department of Defense to consider polymetallic nodules for U.S. critical mineral supplies and national security.....
On August 1, The Metals Company announced: "MC announces corporate update on expected timeline, application costs and production capacity following Part II of the 28th Session of the International Seabed Authority." Highlights include:
On August 14, The Metals Company announced:
The Metals Company announces ~US$27 million registered direct Offering at $2.00 per share plus Class A Warrants.....Each Common Share and the accompanying Class A Warrant to purchase 0.5 Common Shares are being sold at a price of US$2.00. The Class A Warrants have an initial exercise price of US$3.00 per share, subject to certain adjustments therein, are exercisable immediately upon issuance and will expire on December 31, 2027. Gross proceeds to the Company from the offering are expected to be approximately US$27 million, before deducting the financial advisors' fees and other offering expenses payable by the Company. The Company intends to use the net proceeds from the offering on working capital and general corporate purposes.
On August 14, The Metals Company announced: "The Metals Company provides second quarter 2023 corporate update and commentary on ~$27 million capital raise at $2.00 per share with potential upsizing to $38 million." Highlights include:
Q2 2023 Financial Highlights
Chilean Cobalt Corp.
Chilean Cobalt Corp. ("C3") is a critical minerals exploration and development company focused on the La Cobaltera project located in Chile's historic San Juan cobalt district.
On August 14, Market Screener reported:
Chilean Cobalt Corp. reports earnings results for the second quarter and six months ended June 30, 2023. Chilean Cobalt Corp. reported earnings results for the second quarter and six months ended June 30, 2023. For the second quarter, the company reported net loss was USD 0.275722 million compared to USD 0.27393 million a year ago.
Happy to hear any news updates from commentators. Tickers of cobalt juniors we will also be following include:
21st Century Metals (CSE: BULL), African Battery Metals [AIM:ABM], Alloy Resources [ASX:AYR], Artemis Resources Ltd [ASX:ARV] (OTCQB:ARTTF), Aston Minerals [ASX:ASO] (formerly European Cobalt), Auroch [ASX:AOU] [GR:T59], Azure Minerals [ASX:AZS] (OTCPK:AZRMF), Bankers Cobalt [TSXV:BANC] [GR:BC2], Battery Mineral Resources [TSXV:BMR], BHP Group Limited (BHP), Blackstone Minerals [ASX:BSX], Brixton Metals Corporation [TSXV:BBB], (OTCQB:BBBXF), Canada Nickel [TSXV:CNC], Canada Silver Cobalt Works Inc [TSXV:CCW] (OTCQB:CCWOF), Canadian International Minerals [TSXV:CIN], Capstone Copper Corp. [TSX:CS], Carnaby Resources [ASX:CNB], Castillo Copper [ASX:CCZ], Celsius Resources [ASX:CLA] [GR:FX8], Centaurus Metals [ASX:CTM], CBLT Inc. [TSXV:KBLT] (OTCPK:CBBLF), Chilean Cobalt Corp. (COBA), Cobalt Power Group [TSX:CPO], Cohiba Minerals [ASX:CHK], Corazon Mining Ltd [ASX:CZN], Cruz Battery Metals Corp. [CSE:CRUZ][FSE: A2DMG8] (OTCPK:BKTPF), Cudeco Ltd [ASX:CDU] [GR:AMR], DLE Resources [TSXV:DLP], Dragon Energy [ASX:DLE], Edison Battery Metals [TSXV:EDDY], Electric Royalties [TSXV:ELEC], First Quantum Minerals Ltd. (OTCPK:FQVLF), Fortune Minerals [TSX:FT] (OTCQB:FTMDF), Fuse Cobalt Inc [CVE:FUSE], Galileo [ASX:GAL], Alliance Nickel [ASX:GME] (OTC:GMRSF), Golden Arrow Resources [TSXV:GRG] (OTCQB:GARWF), High-Tech Metals [ASX:HTM], Hinterland Metals Inc. (OTCPK:HNLMF), Hylea Metals [ASX:HCO], Idaho Champion [CSE:ITKO] [FSE:1QB1], IGO Limited [ASX:IGO] (OTCPK:IIDDY), Lion Rock Resources (OTCPK:KBGCF) [TSXV:KBG], Latin American Resources, M2 Cobalt Corp. (TSXV: MC) (OTCPK:MCCBF), MetalsTech [ASE:MTC], Meteoric Resources [ASX:MEI], Mincor Resources (OTCPK:MCRZF) [ASX:MCR], Namibia Critical Metals [TSXV:NMI] (OTCQB:NMREF), Pacific Rim Cobalt [BOLT:CSE], PolyMet Mining [TSXV:POM] (PLM), OreCorp [ASX:ORR], Power Americas Minerals [TSXV:PAM], Panoramic Resources (OTCPK:PANRF) [ASX:PAN], Pioneer Resources Limited [ASX:PIO], Platina Resources (OTCPK:PTNUF) [ASX:PGM], Quantum Battery Metals [CSE:QBOT] GR:23BA] (OTCPK:BRVVF), Queensland Pacific Metals [ASX:QPM] (OTCPK:QPMLF), Regal Resources (OTC:RGARF), Resolution Minerals Ltd [ASX:RML], Sienna Resources [TSXV:SIE], (OTCPK:SNNAF), Stillwater Critical Minerals Corp. [TSXV:PGE] (OTCQB:PGEZF), and Victory Mines [ASX:VIC].
August saw cobalt spot prices flat and LME inventory was also flat the past month.
Highlights for the month were:
As usual, all comments are welcome.
Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.