Cobalt Miners News For The Month Of March 2024

Welcome to the March 2024 cobalt miners news.

The past month saw cobalt prices continue to move sideways remaining at very low prices.

Cobalt price news

As of March 22, the cobalt spot price was at US$12.72/lb, flat from US$12.65/lb last month. The LME cobalt price is US$27,815/tonne. LME Cobalt inventory is 92 tonnes, the same as the 92 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 12.72 (source)

Cobalt demand v supply forecasts

You can view the latest Trend Investing cobalt demand v supply article here.

S&P Global Intelligence cobalt demand v supply forecast as of Aug. 2023 (deficit in 2027) (source)

Cobalt supply and demand forecast – Deficits growing from ~2025/26 (forecast as of 2023 by Cobalt Blue, Benchmark Mineral Intelligence, & Rho Motion) (source)

Benchmark Mineral Intelligence forecasts deficits for lithium, nickel & cobalt to increase from 2027 onwards (source)

Morgan Stanley forecasts cobalt surpluses to grow this decade (as of Nov. 2023) (source)

Trend Investing v IEA demand forecast for EV metals (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

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)

Cobalt market news

On February 26 NASDAQ (courtesy INN) reported:

Elliott Management’s Hyperion to seek billion-dollar mining assets as metals demand grows. Bargain-hunting billionaire investment firms are chasing undervalued mining stocks…However, with commodities demand forecast to surge as the green transition takes hold, there’s plenty of optimism that tides are set to change, and big-name contrarians are beginning to position ahead of time…Elliott Investment Management (US$65 billion assets under management) is set to launch Hyperion, a new investment company, with a US$1 billion war chest and a mandate to acquire global mining assets on the cheap…Base metals, precious metals and commodities strategic for electric vehicle batteries and renewable energy infrastructure are reportedly on its shopping list – think lithium, nickel, cobalt and copper.

On March 4 Reuters reported:

China’s Huayou Cobalt chief proposes battery material policy to tackle overcapacity. China should adopt measures to tackle overcapacity in the lithium battery material industry, the chairman of Zhejiang Huayou Cobalt proposed ahead of the country’s annual parliamentary meeting, state media reported on Monday. Overinvestment led to “severe overcapacity” in the last year, said Chen Xuehua…Chen, whose company is a major producer of battery materials nickel and cobalt, proposed that the government publish timely industry information, establish an alerting system to flag mismatch of resources, capacity and demand, and provide guidance on investment and development.

On March 7 Yahoo Finance reported:

Struggling Australian cobalt miner blames Chinese overproduction for job cuts. Australian miner Jervois Global Ltd. is cutting costs and jobs in response to a plunge in cobalt prices that it’s blaming on Chinese oversupply…Cobalt prices have plummeted by almost two-thirds over the past two years on rising supply – the Democratic Republic of Congo and Indonesia have been mining more of the metal – and a slowdown in demand growth. Chinese plants processed 80% of global cobalt supply last year…

On March 18 Reuters reported:

Exclusive: US explored adding more cobalt to defense stockpiles, sources say…Any increase in cobalt holdings would be aimed at reducing reliance on China, which dominates the processing of the material used to make missiles, aerospace parts, magnets for communication, and radar and guidance systems…The DLA’s stockpiling plans which run from October 2023 to September 2024 did not include, opens new tab cobalt, surprising the market, which had expected the 60% price drop to around $16 a lb since May 2022 to incentivise purchases. DLA spokesperson Joe Yoswa said: “DLA conducts critical material supply chain assessments biennially to determine NDS (National Defense Stockpiles) requirements. Cobalt is not currently presenting as a vulnerability requiring stockpiling.”

Cobalt company news

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

On February 21, Glencore announced:

Preliminary results 2023…Group Adjusted EBITDA of $17.1 billion, cash generated by operating activities of $15.1 billion and Net income attributable to equity holders of $4.3 billion… “For 2024, basis 2023 cash flows, we are recommending to shareholders a $0.13 per share (c.$1.6 billion) base cash distribution, comprising $1 billion from Marketing cash flows and 25% ($0.6 billion) of Industrial attributable cash flows…

On March 20, Glencore announced:

Publication of second Climate Action Transition Plan…”Reflecting on these various inputs, this CATP retains our existing emissions reduction targets, of 15% and 50% by the end of 2026 and 2035 respectively and our 2050 ambition of achieving net zero industrial CO2e emissions, subject to a supportive policy environment. It also introduces a new interim target of a 25% reduction in CO2e emissions for our industrial assets by the end of 2030. We are on track to meet our 2026, 2030 and 2035 emissions reduction targets, all of which are measured against a restated 2019 baseline…

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

On March 12, CMOC announced:

Inside information preliminary financial data for the year of 2023…During the Reporting Period, the Company realized operating revenue of RMB186,268,971,920.54, representing a year-on-year increase of 7.68%; net profit attributable to shareholders of the listed company of RMB8,249,711,872.51, representing a year-on-year increase of 35.98%; and net profit attributable to shareholders of the listed company after deduction of non-recurring gains or losses of RMB6,232,811,345.95, representing a year-on-year increase of 2.73%…

Zhejiang Huayou Cobalt [SHA:603799]

No company related news for the month.

Jinchuan Group International Resources [HK:2362]

On February 29, Jinchuan Group International Resources Co. Ltd announced:

Operational update for the year ended 31 December 2023…In 2023, the Group’s mining operations produced 62,006 tonnes of copper content included in copper cathode and copper concentrate (2022: 59,440 tonnes) and 2,207 tonnes of cobalt content included in cobalt hydroxide (2022: 3,961 tonnes). In 2023, the Group’s mining operations sold 59,516 tonnes of copper (2022: 64,739 tonnes), representing a decrease of approximately 8% compared to 2022, and 2,114 tonnes of cobalt (2022: 4,496 tonnes), representing a decrease of approximately 53% compared to 2022. The Group’s mining operations generated revenue from sales of copper of approximately US$432.1 million (2022: US$487.9 million), representing approximately 11% decrease compared to 2022, and generated revenue from sales of cobalt of approximately US$39.1 million (2022: US$160.9 million), representing approximately 76% decrease compared to 2022. Moreover, the revenue generated from trading of externally sourced mineral and metal products amounted to approximately US$164.4 million (2022: US$232.8 million), representing a decrease of approximately 29% as compared to 2022. The decrease was due to the decrease in both trading volume and the commodities prices in 2023.

Chemaf (subsidiary of Shalina Resources)

No news for the month.

Note: An October 2023 Reuters report quoted: “Chemaf SA …is up for sale as it deals with a cash crunch.”

GEM Co Ltd [SHE:002340]

No news for the month.

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)

No news for the month.

Sumitomo Metal Mining Co. (TYO:5713) (Sumitomo Metal Mining Co., Ltd. (OTCPK:STMNF) Stock Price Today, Quote & News)

No cobalt related news for the month.

MMC Norilsk Nickel [LSX:MNOD] [GR:NNIC] (NILSY)

On February 29, MMC Norilsk Nickel announced:

Nornickel approves updated environmental strategy and Key focus areas of carbon neutrality…To deliver on the targets, the Company drafted programmes that include more than 150 specific initiatives with costs in 2023-2031 estimated at more than RUB 500 bn…

On March 14, MMC Norilsk Nickel announced: “Nornickel’s digitalization arm debuts token on precious and base metals…”

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

No news for the month.

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

No news for the month.

Electra Battery Materials [TSXV:ELBM] (ELBM)

On March 13, Electra Battery Materials announced:

Electra provides corporate update. Electra Battery Materials Corporation (NASDAQ: ELBM; TSX-V: ELBM) (“Electra” or the “Company”) is pleased to announce that the Company has received the approval of the TSX Venture Exchange to issue common shares in the capital of the Company (the “Shares”) in satisfaction of US$400,732 of interest payable to certain of the holders of US$51 million principal amount of 8.99% senior secured convertible notes (the “Notes”) pursuant to the terms of the previously announced agreement (February 27, 2024)…

Possible mid-term producers (2025 onwards)

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

On February 26, Jervois Global Limited announced: “Jervois shortlists locations for Department of Defense funded BFS for U.S. cobalt refinery.” Highlights include:

• “Jervois shortlists two locations, one in each of the states of Pennsylvania and Louisiana, for its Department of Defense (“DoD”) funded bankable feasibility study (“BFS”) for a United States cobalt refinery.
• Sites are being evaluated to determine the preferred location; commercial negotiations with the states of Pennsylvania and Louisiana are commencing.
• Completion of site selection is an important milestone in the progress of the basic engineering and accompanying BFS for a U.S. cobalt refinery, led by engineering firm AFRY USA LLC and is expected to be completed by mid-2024.
• BFS is key to Jervois’ previously announced application under the Department of Energy (“DOE”) Advanced Technology Vehicle Manufacturing Loan Program (the “ATVM Loan Program”) for a U.S. cobalt refinery.
• U.S. Cobalt refinery BFS is fully funded by the U.S. DoD Defense Production Act (“DPA”) Title III US$15 million funding agreement.”

On Mach 18, Jervois Global Limited announced: “2023 annual report and financial statements…”

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

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

On February 29, Sunrise Energy Metals Limited announced: “Half-year financial report 31 December 2023…”

On March 1, Sunrise Energy Metals Limited announced: “S&P Dow Jones Indices Announces March 2024 Quarterly Rebalance of the S&P/ASX Indices.”

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 February 29, Ardea Resources announced:

Ardea and Japanese Consortium: Update on Progress on KNP – Goongarrie Hub…Ardea and the Consortium will continue discussions to agree on binding Final Agreements, aiming to be finalised and executed by 31 March 2024. Upon execution of Final Agreements, future work will be aimed at completing the DFS, making a Final Investment Decision [FID] and securing project development funding for the Goongarrie Hub to become a globally significant producer of nickel-cobalt.

On March 12, Ardea Resources announced:

Interim financial report half-year ended 31 December 2023…The KNP global Mineral Resource Estimate (using a 0.5% Ni cut-off grade) stands at 854Mt at 0.71% Ni and 0.045% Co for 6.1Mt of contained nickel and 386kt of contained cobalt…

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

Cobalt Blue has 87kt 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 February 26, Cobalt Blue Holdings announced: “BHCP and refinery update.” Highlights include:

• “Cobalt Blue is delighted to announce Iwatani Corporation as our potential partner in developing the Broken Hill Cobalt Project (BHCP) executed via a Heads of Agreement (HoA). While the HoA is non-binding it cements the shared strategic vision for both BHCP and the Kwinana Refinery Project (Refinery) and provides a pathway to executing a binding agreement between parties.
• Under current and near-term metal pricing forecasts, the current size and configuration of the BHCP (as outlined in Project Update 2020) is presently unlikely to attract project financing. The COB Board has therefore commissioned a strategic review (Review). The Review will focus on a condensed, higher-margin project. The aim is to assess the viability of a smaller project and provide an option for development if future market pricing persists at subdued levels.
• COB’s view remains that the cobalt market will tighten, and fundamentals will improve, supporting higher long-term sustain-able metal pricing compared to current levels.
• The Refinery Development Program has progressed, sourcing a broad range of cobalt rich materials representing global cobalt supply, and has begun processing this feedstock to target battery-grade cobalt sulphate. These large-scale samples will be used for initial Refinery qualification.”

On March 1, Cobalt Blue Holdings announced: “S&P Dow Jones Indices Announces March 2024 Quarterly Rebalance of the S&P/ASX Indices.”

On March 13, Cobalt Blue Holdings announced: “COB – Half year accounts – December 2023…”

On March 15 ABN Newswire reported:

Australia answers the call: Proposed Cobalt Blue refinery to meet US & EU battery metal demand…Plans have recently been unveiled to build the Cobalt-Nickel Refinery in the Kwinana Industrial Area, south of Perth, Western Australia, with first production estimated by early 2026.

Australian Mines [ASX:AUZ] (OTCPK:AMSLF) – Plan to change name to EcoMetal Resources (ASX:EM1)

On February 26, Australian Mines announced: “Successful equity placement and no further shares to be issued under share subscription agreements.”

On March 15, Australian Mines announced: “Consolidated interim financial report half year ended 31 December 2023…”

On March 21, Australian Mines announced:

Application to list options. Australian Mines Limited (“Australian Mines” or “the Company”) refers to its Appendix 2A dated 2 August 2024 to list issued options exercisable at $0.022 expiring 2 February 2027 and: Advises the Options will commence trading today under the ASX code AUZOA. Confirmed the expiry date is 2 February 2027, not 27 February 2027 referred to in the Appendix 2A…

Upcoming catalysts include:

• End of 2025/early 2026 – FID for the Sconi Project.

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 February 26, Havilah Resources announced: “Quarterly activities and cashflow report – Period ended 31 January 2024.” Highlights include:

• “The Kalkaroo copper-gold-cobalt project (Kalkaroo Project) reverted 100% unencumbered to Havilah after BHP Group Limited (ASX: BHP) advised that it would not exercise the Kalkaroo Call Option.
• Havilah engaged Deutsche Bank to assist in finding a new partner to replace BHP in the Kalkaroo agreements.
• Reverse circulation [RC] drilling encountered wide copper and gold intersections at the North Dome prospect, including 60 metres of 0.56 g/t gold and 54 metres of 0.27% copper.
• Birksgate prospect exploration drilling confirmed a potentially large area of copper skarn mineralisation and also intersected a 178 metre thick layer of strongly graphitic metasediments.
• With revived market interest in uranium Havilah entered into binding agreements with Koba Resources Limited (ASX: KOB), conferring exploration and mining rights for Cenozoic age sand-hosted uranium deposits on certain of Havilah’s exploration licences…
• Inclusion of the Kalkaroo copper-gold-cobalt project in the Australian Critical Minerals Prospectus 2023, highlights the appreciable critical minerals potential of Kalkaroo.”

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

Aeon Metals 100% own their Walford Creek copper-cobalt project in Queensland Australia.

On March 1, Aeon Metals announced: “2023 interim report…”

Alliance Nickel Limited [ASX:AXN] (GMRSF) (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 February 26, Alliance Nickel announced: “Financial report half year ended 31 December 2023…”

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

No significant news for the month.

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 March 19, Yahoo Finance reported:

Giga Metals CEO discusses vision for a greener battery future – PDAC 2024. Giga Metals Corp (TSX-V:GIGA, OTCQX:GIGGF) CEO Mark Jarvis tells Proactive’s Angela Harmantas that the company possesses one of the world’s largest deposits of sulphide nickel and cobalt, crucial for battery chemistry in electric vehicles (EVs). Speaking to Proactive at PDAC 2024, Jarvis said the company’s focus is on producing environmentally friendly nickel, addressing the automotive industry’s demand for clean raw materials, particularly from European carmakers. The Turnagain Nickel project in British Columbia is Giga Metals’ flagship, highlighted by its pre-feasibility study revealing 35,000 tonnes per year of nickel and 2,000 tonnes per year of cobalt over a 30-year mine life. This is based on 950 million tonnes of reserves, part of larger indicated and inferred resources suggesting potential for a 100-year mine life. Currently, the company is seeking strategic partners to fund the transition from pre-feasibility to final investment decision, a process estimated to cost around $50 million. Giga Metals aims to advance the project through environmental assessments and full feasibility studies, with Mitsubishi Corp as a key existing partner.

The Metals Company (TMC)

On March 13, The Metals Company announced:

TMC commends U.S. congress on Bill to “Provide financial, diplomatic, or other forms of support for seafloor nodule collection, processing and refining” and advancing international regulations for Seafloor Resources…

On March 14, The Metals Company announced:

TMC applauds ~350 former U.S. Political and Military Leaders urging senate to ratify law of the sea for deep-sea mine sites “Each containing a trillion dollars in value…”

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

March saw cobalt spot prices flat and LME inventory levels flat.

Highlights for the month were:

• Elliott Management’s Hyperion to seek billion-dollar mining assets as metals demand grows. US$1 billion war chest and a mandate to acquire global mining assets on the cheap…Base metals, precious metals and commodities strategic for electric vehicle batteries and renewable energy.
• China’s Huayou Cobalt chief proposes battery material policy to tackle overcapacity.
• Struggling Australian cobalt miner blames Chinese overproduction for job cuts.
• US DLA says cobalt is not currently presenting as a vulnerability requiring stockpiling.
• Glencore preliminary 2023 results of Group Adjusted EBITDA of $17.1B, on track to meet 2026, 2030 and 2035 emissions reduction targets.
• CMOC’s 2023 preliminary revenue increased by 7.68% YoY.
• Jinchuan Group International Resources cobalt sales down 53% YoY and cobalt revenue down 76% YoY.
• Jervois Global shortlists locations for Department of Defense funded BFS for U.S. cobalt refinery.
• Ardea and Japanese Consortium continue discussions to agree on binding Final Agreements, aiming to be finalised and executed by 31 March 2024.
• Cobalt Blue announces Iwatani Corporation as potential partner in developing the Broken Hill Cobalt Project (BHCP) executed via a Heads of Agreement (HoA). Plans a Strategic Review to focus on a condensed, higher-margin Project. Proposed Cobalt Blue refinery at Kwinana, WA.
• Havilah drills 60 metres of 0.56 g/t gold and 54 metres of 0.27% copper at their North Dome prospect.
• TMC applauds ~350 former U.S. Political and Military Leaders urging senate to ratify law of the sea for deep-sea mine sites.

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.