Cobalt Miners News For The Month Of August 2024

Cobalt market news

On July 22 Investing News Network reported:

S&P Global: US outpaced by most other countries in mine development times…The document reveals that it takes nearly 29 years on average for a US mine to progress from discovery to production, compared to 27 years in Canada and 20 years in Australia. Only Zambia takes longer at an average of 34 years…Without domestic supply, the US remains vulnerable to supply chain disruptions and geopolitical tensions. With that in mind, the Biden administration has recognized the need to secure domestic sources of important commodities and has taken steps to address lengthy mine approval timelines. For example, the Infrastructure Investment and Jobs Act includes provisions that prioritize energy and critical minerals research, and also allocates funds for mineral extraction.

On July 30 Fastmarkets reported: “Supply surge pushes Chinese cobalt metal prices to eight-year low.”

On August 22 Reuters reported:

Cobalt supply tsunami hits the market of last resort…The appearance of so much metal at the dormant market of last resort is a sign of chronic global supply glut…This time around the supply boom is being driven by a structural combination of capacity expansion in the Congo and fast-rising output from Indonesia.

On August 22 Fastmarkets reported: “China’s July cobalt metal export and intermediate import numbers raise market concerns about continued oversupply.”

On August 22 The Guardian reported:

US military announces $20m grant to build cobalt refinery in Canada. Pentagon investment would make North America’s first cobalt sulfate refinery as US looks to diversify supply chain. The US military has made its largest investment in Canada’s mining sector in decades…Electra Battery Materials says when the operation, located between the town of Cobalt and Temiskaming Shores, is up and running, it will be North America’s only cobalt sulfate refinery, capable of producing battery-grade materials…

Cobalt company news

CMOC Group Limited [HKSE:3993] [SHE:603993] (OTCPK:CMCLF) (formerly China Molybdenum)

No significant news for the month.

Glencore [HK:805] [LSE:GLEN] (OTCPK:GLCNF)

On July 30, Glencore announced:

Half-Year Production Report 2024… Glencore Chief Executive Officer, Gary Nagle: “Across the portfolio, our full-year 2024 production guidance has been maintained…Key anticipated H2 over H1 higher production levels include African Copper: +c.30kt (recovery from H1 mill outage, access to higher grade ores and higher throughput rates at Mutanda), Antapaccay: +c.8kt (recovery from H1 geotechnical event), Kazzinc: +c.60kt (continued ramp-up at Zhairem) and Murrin Murrin: +c.3kt (reflecting the timing of its annual shutdown in April).

PS: As shown below H1, 2024 cobalt production was down 27% YoY at 15.9kt.

Production from own sources – Total¹ (source)

On August 7, Glencore announced: 2024 Half-Year Report. Glencore’s Chief Executive Officer, Gary Nagle, commented:

Against the backdrop of lower average prices for many of our key commodities during the period, particularly thermal coal, our overall Group Adjusted EBITDA of $6.3 billion was 33% below the comparable prior year period, however Funds from Operations were up 9%, due to the timing of income tax payments . We reported a Net loss attributable to equity holders of $233 million, after recognising $1.7 billion of significant items, including c.$1.0 billion of impairment charges.

“Reflecting healthy cash generation and after funding $2.9 billion of net capital expenditure and $1.0 billion of shareholder returns, Net debt, including Marketing-related lease liabilities, finished the first half at $3.6 billion, down $1.3 billion compared to $4.9 billion at the end of 2023.”

Zhejiang Huayou Cobalt [SHA:603799]

On August 16, Huayou Cobalt announced:

Huayou and Hyundai Glovis build a new pattern of Battery Recycling Industry Chain…Hyundai Motor Group’s vision of the right move for the right future coincides with the concept of Huayou Recycling, and strengthening communication and enhancing mutual trust will open up a broad space for lithium material recycling…the two sides will carry out in-depth strategic cooperation in the construction of special logistics system for waste power batteries, R&D, manufacturing and global market expansion of energy storage systems, power battery pretreatment and recycling of key materials.

On August 20 Huayou Cobalt announced: “Promoting low-carbon development in the industry, Huayou Indonesia participates in the 2nd LIKE Festival.”

Jinchuan Group International Resources [HK:2362]

On August 14, Jinchuan Group announced:

Operational update for the six months ended 30 June 2024 and positive profit alert…The Group produced 681 tonnes of cobalt content included in cobalt hydroxide in 2024 1H, representing a decrease of approximately 50% as compared to that of 1,364 tonnes in 2023 1H due to the lower ore feed grade and the continual decline in cobalt market prices in 2024 1H. The Group had adjusted its production plan to reduce the cobalt output and decided to temporarily cease the cobalt production in late May 2024 so as to devote more resources to the production of copper…the Group is expected to record a profit attributable to the Shareholders of not less than US$5 million for 2024 1H.

Chemaf (subsidiary of Shalina Resources) – to be taken over by Norin Mining Limited in Q4, 2024

No news for the month.

GEM Co Ltd [SHE:002340]

On August 17 GEM Co announced:

GEM and EVE collaborate to create a benchmark project for the commercial and industrial energy storage industry chain…on August 14, 2024, a grand signing ceremony was held for the 60.2MW/120.4MWh energy storage project between Jingmen GEM Co., Ltd. (hereinafter referred to as “GEM”), a subsidiary of GEM Co., Ltd., and Hubei EVE Digital Energy Technology Co., Ltd. (hereinafter referred to as “EVE”), a subsidiary of EVE Energy Co., Ltd…Once completed, the project will become the largest commercial and industrial energy storage project in Hubei Province…The project is located in the GEM (Jingmen) New Energy Materials Circular Economy Low-Carbon Industrial Park and will use lithium iron phosphate batteries produced at EVE’s Jingmen factory… the project is scheduled to be officially operational in the second half of 2024.

On August 19 GEM Co announced:

GEM and South Korea’s EcoPro BM forge 265,000-ton precursor supply agreement, marking a new milestone in strategic cooperation across the entire industry chain of secondary battery raw materials.. Both parties have agreed that from 2025 to 2028, EcoPro BM will additionally purchase 265,000 tons of precursors from GEM, further solidifying GEM’s position as a leading global manufacturer of high-nickel precursors.

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.

On July 30 ERG announced:

ERG continues to diversify its cobalt sales, signs agreements with established players in North America, Europe and Japan. Up to 15kt of sustainably produced cobalt, or around 75% of ERG’s Metalkol volumes, signed under Memoranda of Understanding (MoUs) or binding agreements, to be supplied by ERG to Western battery supply chain by 2027.

Umicore SA [Brussels:UMI] (OTCPK:UMICY)

On August 12 Umicore announced: “Umicore joins forces with the U.S. Department of Energy’s Critical Materials Innovation Hub.”

Sumitomo Metal Mining Co. (TYO:5713) (OTCPK:STMNF)

On August 7, SMM announced: “Consolidated financial results for the First Quarter ended June 30, 2024.” Profit was 21,469 million Yen, down 6.9%.

MMC Norilsk Nickel

On July 29, Norilsk Nickel announced:

Consolidated production results for 1H 2024… “In 1H 2024, the output of key metals saw different trends: while we increased the production of copper, the output of other metals slightly decreased.

Sherritt International [TSX:S] (OTCPK:SHERF)

On July 29, Sherritt International announced:

Sherritt reports second quarter 2024 results; Metals and Power deliver strong performance; Net direct cash cost significantly improved…our net direct cash cost of US$5.75 per pound was a significant improvement… Sherritt’s share ⁽¹⁾ of finished nickel and cobalt production at the Moa Joint Venture (“Moa JV”) was 3,383 tonnes and 342 tonnes, respectively. Net loss from continuing operations was $11.5 million, or $(0.03) per share primarily due to lower average-realized prices ⁽²⁾ for nickel, cobalt and fertilizers, partly offset by higher nickel sales volumes.

Nickel 28 [TSXV:NKL] [GR:3JC] (OTCPK:CONXF)

On August 9, Nickel 28, announced:

Nickel 28 releases Ramu Q2 2024 operating performance…Ramu Q2 2024 production of 675 tonnes of contained cobalt in MHP, compared to 717 tonnes in the same period last year…Ramu Q2 2024 cash cost, net of by-product credits of $3.37/lb. of nickel produced as MHP, representing a decrease of 14% from the same period last year. H1 2024 cash cost, net of by-product credits of US$3.17/lb…We believe that nickel and cobalt prices should be close to bottoming. This should coincide with Ramu coming out of our capital refurbishment plan creating an opportunity to reward shareholders.

Electra Battery Materials [TSXV:ELBM] (ELBM)

On August 14, Electra announced:

Electra announces agreement regarding outstanding Convertible Notes interest… the Company and the holders of US$51 million principal amount of 8.99% senior secured convertible notes have agreed that all accrued interest owing to August 15, 2024, on the convertible notes will be “paid-in-kind,” not in cash, and added to the outstanding principal amount of the notes. As a result of this agreement, the Company will issue additional notes in the principal amount of US$6.5 million.

On August 19, Electra announced:

Electra awarded $20 Million from U.S. Department of Defense under the Defense Production Act…The funds will support the construction and commissioning of North America’s only cobalt sulfate refinery, capable of producing battery grade materials for lithium-ion batteries…The $250 million refinery project is located north of Toronto, in Temiskaming Shores, and is projected to have the lowest carbon footprint in the world. The Company is expanding an existing plant, with permits in hand, construction well underway and most long lead custom equipment at site. Once fully commissioned, the facility can produce 6,500 tonnes of cobalt per year, which would support the production of over 1 million EVs annually. LG Energy Solution will purchase up to 80% of capacity over the first five years and several buyers are now competing for the remaining production. The cobalt feed material will be ethically-sourced from Glencore and Eurasian Resources Group mines in the DRC – material that would otherwise be shipped to China.

Other smaller producers

• China Nonferrous Metal Mining Company (CNMC)
• Dongfang International Mining
• Jiangsu Cobalt
• Nanjing Hanrui Cobalt
• Pengxin International Mining Co
• Zijin Mining Group [SSE:601899]
• Wanbau
• GTL
• Jiana Energy
• Sicomes
• Shenzhen GEM

Jervois Global Limited [ASX:JRV] [TSXV: JRV] (OTCQB:JRVMF) [FRA: IHS] (formerly Jervois Mining)

On July 31, Jervois Global Limited announced: “Jervois Global Limited Quarterly Activities Report to 30 June 2024.” Highlights include:

Jervois Finland:

• “Positive operating cash flow of US$4.3 million in the quarter.
• Result despite cyclically low cobalt demand and pricing.
• Q2 2024 cobalt sales of 1,163 metric tonnes (“mt”); full year guidance revised to 5,100 mt to 5,400 mt.
• Cobalt battery demand outlook improving due to United States (“U.S.”) Foreign Entity of Concern (“FEOC”) regulations.”

Idaho Cobalt Operations (“ICO”), U.S.:

• “U.S. Department of Defense (“DoD”) Defense Production Act (“DPA”) Title III funded extensional drilling at RAM deposit continued.
• Four extensional drillholes completed, including the deepest targeted drilling to date; all holes intersected main mineralised horizon, returning strong grades across mineable widths.”

Corporate:

• “June 2024 quarter-end cash balance of US$21.3 million and drawn senior debt of US$144.1 million1.
• Negotiations on potential asset sales and / or partnerships to support deleveraging continue to advance.
• Continued to work in conjunction with lenders on potential transactions to strengthen the balance sheet.
• Extension of ICO US$100.0 million 12.5% Senior Secured Bonds (“Bonds”) covenant waiver, including deferral of interest, until 20 August 2024.
• Transfer of Jervois Finland Working Capital Facility from Mercuria to the majority holder (the “Holder”) of the Bonds announced on 26 July 2024.”

On July 31, Jervois Global Limited announced: “U.S. Government-funded extension drilling confirms resource growth potential at Jervois’ ICO.” Highlights include:

• “…Deepest targeted drilling to date at ICO demonstrates strong cobalt-copper-gold mineralisation over mineable widths outside existing reported resource wireframes.
• Four extensional drillholes completed; all holes intersected the main mineralised horizon (“MMH”). Analytical results include: 1.8 metres calculated true width (“CTW”) @ 1.10% cobalt (“Co”), 1.18% copper (“Cu”) and 0.69 grams per metric tonne gold (“g/t Au”) (Hole JU24-093). 4.8m CTW @ 0.18% Co, 0.34% Cu and 0.10 g/t Au (JU24-095). 2.1m CTW @ 0.48% Co, 0.60% Cu and 0.86 g/t Au (JU24-096). 5.5m CTW @ 0.61% Co, 1.35% Cu and 1.51 g/t Au (JU24-097).
• These results are complemented by hangingwall (“HW”) intercepts in JU24-093, JU24-095 and JU24-096, depicting positive continuity of semi-parallel HW mineralisation: 3.8m CTW @ 0.48% Co, 1.74% Cu and 1.13 g/t Au (JU24-093). 2.7m CTW @ 0.38% Co, 0.22% Cu and 0.27 g/t Au (JU24-095). 5.2m CTW @ 1.40% Co, 1.38% Cu and 2.23 g/t Au (JU24-096).
• Prior to drilling, ICO’s mineral resource was already the largest and highest grade confirmed cobalt orebody in the U.S.”

On August 21, Jervois Global Limited announced:

Extension of waiver and interest deferral on ICO bonds, waivers under JFO Working Capital Facility…to 30 August 2024…

Possible mid-term producers (2025 onwards)

Sunrise Energy Metals Limited [ASX:SRL] (OTCQX:SREMF) (formerly Clean TeQ)

Sunrise Energy Metals has 132kt contained cobalt at their Sunrise project.

No news for the month.

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 30, Ardea Resources announced:

Quarterly operations report for the quarter ended 30 June 2024. The Company is well capitalised with $14.8M cash-at-bank as at 30 June 2024, and has no debt. Additionally, wholly owned subsidiary Kalgoorlie Nickel Pty Ltd (KNPL) has a funding support arrangement of $11.1M through Sumitomo Metal Mining Co., Ltd (SMM) to facilitate the early start to DFS programs. With available funds of $25.9M, the Company is soundly positioned.

On August 14, Ardea Resources announced: “KNP – Goongarrie Hub Joint Venture FIRB approval received.” Highlights include:

• “Ardea has been notified that the consortium, consisting of Sumitomo Metal Mining Co., Ltd and Mitsubishi Corporation (Consortium) has obtained FIRB approval for the KNP – Goongarrie Hub incorporated joint venture.
• The Consortium has also obtained merger control clearance from the Korea Fair Trade Commission.
• Work continues on the KNP – Goongarrie Hub Definitive Feasibility Study.”

Cobalt Blue Holdings [ASX:COB] (OTCPK:CBBHF)

Cobalt Blue has 87kt of contained cobalt at their 100% owned Broken Hill Cobalt Project [BHCP] in NSW, Australia. There is also a plan for a Cobalt-Nickel Refinery. LG International is an equity strategic partner.

On August 15, Cobalt Blue Holdings announced:

Cobalt Blue: Australia’s first cobalt-nickel refinery. Cobalt Blue is set to revolutionise Australia’s critical minerals landscape by establishing the nation’s first cobalt-nickel refinery in Western Australia (WA)… Strategically located in the Kwinana Industrial Area (south of Perth, WA), the refinery will benefit from world-class infrastructure, including deep water ports and proximity to WA’s mining sector. Leveraging Cobalt Blue’s proprietary, industry-leading technology (perfected at its Broken Hill Technology Development Centre), the refinery will produce high-purity cobalt and nickel sulphate products…Cobalt Blue’s strategic partnership with Japan’s Iwatani Corporation will leverage their worldwide distribution network to optimise the refinery’s operations and market reach. With an annual production capacity targeted at 3,000 tonnes of cobalt metal (as cobalt sulphate)…Subject to regulatory approvals, financing, and the successful completion of studies, construction of the refinery is expected to commence in 2025.

Australian Mines [ASX:AUZ] (OTCPK:AMSLF)

On July 30, Australian Mines announced:

Quarterly activities report for period ended 30 June 2024…During the period the Company continued its diversification into Brazil. This strategy provides shareholders exposure to the potential discovery of further Tier 1 assets, within the battery metals sector. The Company implemented this strategy to counterbalance its exposure to the nickel and cobalt markets, which are currently experiencing a downturn…Completed 2 exploration programmes at the Resende Lithium project resulting in the discovery of Rare Earths, Tin, Tantalum and Lithium prospective basins.

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, 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 August 19, Havilah Resources announced: “Mutooroo agreement with JX Advanced Metals.” Highlights include:

• “A binding Memorandum of Understanding signed with JX Advanced Metals Corporation (JXAM) of Japan for an exclusivity period and study program on the Mutooroo copper-cobalt-gold project (Mutooroo).
• This will involve JXAM spending almost $3 million on resource expansion and resource upgrade drilling and other studies on a non-recourse basis to inform its decision on whether to acquire an interest in Mutooroo.”

Aeon Metals [ASX:AML] (OTC:AEOMF)

Aeon Metals 100% own their Walford Creek copper-cobalt project in Queensland Australia. Voluntary Administrators appointed in July 2024.

On July 26 Aeon Metals announced: “APPOINTMENT OF VOLUNTARY ADMINISTRATORS.”

On August 22, Aeon Metals announced: “Suspension from official quotation…”

Alliance Nickel Limited [ASX:AXN] (GMRSF)

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 29 Alliance Nickel Limited announced:

June 2024 quarterly activities report. NiWest Project Definitive Feasibility Study well advanced, expected to be finalised H2 2024…Post-quarter end, long-term supportive shareholder Zeta Resources provided a $4 million unsecured loan facility on competitive terms to complete the NiWest Project Definitive Feasibility Study…

Global Energy Metals Corp. [TSXV:GEMC][GR:5GE1] (OTCQB:GBLEF)

On July 22, Global Energy Metals Corp. announced: “Global Energy Metals announces closing of upsized private placement.”

On August 12, Global Energy Metals Corp. announced: “Global Energy Metals announces commencement of partner operated drilling at Råna Nickel-Copper-Cobalt Project, Norway.”

Giga Metals Corp. [TSXV:GIGA][FSE: BRR2] (OTCQX:GIGGF) Turnagain Nickel-Cobalt Project is now held via the JV company Hard Creek Nickel Corporation [TSXV:HNC] (HNCKF) (85% Giga Metals: 15% Mitsubishi Corp.)

On August 7, Giga Metals Corp. announced: “Giga Metals completes first tranche of non-brokered private placement…”

On August 21, Giga Metals Corp. announced:

Giga Metals completes non-brokered private placement…The Company closed 1,166,666 at $0.15 per Unit for gross proceeds of $175,000…

The Metals Company (TMC)

On August 14, The Metals Company announced: “The Metals Company provides second quarter 2024 corporate update.” Highlights include:

• “Current liquidity available from credit facilities of approximately $48.3 million.
• Increased borrowing capacity of our unsecured credit facilities by $7.5 million in August 2024:
  • ERAS/Barron facility from $20 million to $25 million.
  • Allseas Group SA affiliate facility from $25 million to $27.5 million.
• $12.1 million cash used in operations for the quarter ended June 30, 2024.
• Net loss of $20.2 million and net loss per share of $0.06 for the quarter ended June 30, 2024.”

Chilean Cobalt Corp. (OTCQB:OTCQB:COBA)

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.

No news for the month.

Conclusion

August saw cobalt spot prices lower and LME inventory levels flat.

Highlights for the month were:

• S&P Global: US outpaced by most other countries in mine development times.
• Supply surge pushes Chinese cobalt metal prices to eight-year low.
• Cobalt supply tsunami hits the market of last resort.
• US military announces $20m grant to build cobalt refinery in Canada.
• Glencore H1, 2024 cobalt production was down 27%. H1, 2024 Group Adjusted EBITDA of $6.3 billion was down 33% YoY.
• Huayou Cobalt and Hyundai Glovis build a new pattern of Battery Recycling Industry Chain.
• Jinchuan Group H1, 2024 cobalt production down 50% YoY to 681t. Decided to temporarily cease the cobalt production in late May 2024. Issues positive profit warning (due to copper performance).
• GEM and EVE collaborate to create a benchmark energy storage project. GEM and South Korea’s EcoPro BM forge 265,000-ton precursor supply agreement.
• ERG continues to diversify its cobalt sales, signs agreements with established players in North America, Europe and Japan.
• Sherritt reports Second Quarter 2024 results – Net direct cash cost significantly improved. Net loss from continuing operations was $11.5m.
• Nickel 28 – We believe that nickel and cobalt prices should be close to bottoming.
• Electra awarded $20 Million from U.S. Department of Defense under the Defense Production Act.
• Jervois Global – Jervois Finland positive operating cash flow of US$4.3M in the quarter. Extension of ICO US$100.0M 12.5% Senior Secured Bonds.
• Ardea Resources – KNP – Goongarrie Hub JV FIRB approval received.
• Cobalt Blue – Subject to regulatory approvals, financing, and the successful completion of studies, construction of the refinery is expected to commence in 2025.
• Havilah Resources signs Mutooroo agreement with JX Advanced Metals.
• Aeon Metals appoints voluntary administrators.

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.