HNCKF - Cobalt Miners News For The Month Of April 2023

2023-04-25 06:05:21 ET

Summary

• Cobalt spot prices were up slightly for the month, LME inventory was down for the month.
• Cobalt market news - Cobalt market to stay volatile after record mine output in 2022.
• Cobalt miners news - CMOC gets Congo deal to free stockpile of copper and cobalt. Federal Court approves BHP takeover scheme of arrangement for OZ Minerals.
• Jervois suspends final construction at Idaho Cobalt Operations, pivots Kokkola refinery expansion BFS to U.S. Electra will require additional capital to complete the final commissioning of their Ontario Cobalt Refinery.

Welcome to the April 2023 cobalt miners news.

The past month saw continued low cobalt prices and some negative news from two of the leading cobalt juniors.

Cobalt price news

As of April 24, the cobalt spot price was at US$15.54/lb , up slightly from US$15.20/lb last month. The LME cobalt price is US$34,000/tonne . LME Cobalt inventory is 109 tonnes, down from the 134 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 15.54 ( source )

Cobalt demand v supply forecasts

Cobalt supply and demand forecast - Deficits growing from ~2025 (as of April 2022) by Cobalt Blue and Wood Mackenzie ( source )

BMI 2022 forecast for cobalt - Deficits building starting from 2024

Trend Investing v IEA demand forecast for EV metals ( Trend Investing ) ( 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 March 29 Politico reported :

Canada's C$80B response to U.S. clean energy push: 'We will not be left behind'...... Prime Minister Justin Trudeau's Liberal government is announcing C$80 billion in tax credits for clean technology over the next decade, including C$25 billion for investments in clean electricity.......The government is also announcing a 30 percent tax credit on manufacturing equipment for renewable and nuclear energy projects, zero-emission vehicles and critical mineral extraction and recycling, expected to cost C$11 billion between now and 2035......The government is also promising to cut down the amount of time it takes to get major projects off the ground, including mines for critical minerals. The budget pledges a "concrete plan to improve the efficiency of the impact assessment and permitting processes" by the end of 2023.

On April 5 CIPS reported :

Plummeting cobalt prices shows 'disconnect between supply chain planners and buyers'......The price of cobalt, a mineral largely used in electronics and batteries, has collapsed from $82,000 per tonne in February 2022 to $35,000 at the end of January this year, according to supply chain data provider LevaData......LevaData CEO, Keith Hartley, told Supply Management cobalt prices are "cratering", and will stay low for the foreseeable future......Chief data officer at commodity analyst Benchmark Mineral Intelligence, Caspar Rawles, told SM he didn't expect prices to start going back up until at least 2026. However, he warned buyers cannot stockpile the commodity due to its short shelf life.

On April 17 Investing News reported :

Expert: Cobalt market to stay volatile after record mine output in 2022..... "Following a high price environment in 2021 all the way through early 2022, the (cobalt) demand outlook was extremely strong, which encouraged a lot of mining companies to try and maximize their output," he explained. "A significant increase in cobalt mine production in the Democratic Republic of Congo ((DRC)), combined with a significant increase in mixed hydroxide precipitate production in Indonesia, added a lot of additional cobalt units to the supply base."....."Larger-than-expected supply and sort of disappointing demand developments, or at least demand not growing at the rate that people were generally expecting, has led us to the situation we're in right now".......

Cobalt company news

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

On April 11, Glencore announced : "Glencore, FCC, and Iberdrola partner to provide lithium-ion battery circularity solutions for Spain and Portugal....."

On April 21, Glencore announced : "First quarter production report 2023."

Glencore Q1, 2023 production report showing cobalt production increased by 8% to 10.5kt ( source )

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

On April 19 Bloomberg reported :

Chinese miner gets Congo deal to free stockpile of copper and cobalt..... China's CMOC Group Ltd. made a breakthrough in a long-running spat over mining royalties in the Democratic Republic of Congo, potentially paving the way for its massive stockpile of battery metals to start flowing to global markets.....No financial details of any agreement were given, and the filing made no mention of plans for exports. CMOC has kept the mine running throughout the dispute, and the hoard of copper and cobalt stuck in the African nation was worth about $1.5 billion by late February, according to Bloomberg calculations at that time. Smooth progress at Tenke will "further release" production capacity at the site, where an expansion is expected to start producing this year......

Zheijiang Huayou Cobalt [SHA:603799]

On April 11 Zheijiang Huayou Cobalt announced :

Huayou Cobalt, PT Vale, and Ford Motor jointly create a new energy Li-ion battery industry chain!.....Based on a tripartite partnership, the three companies jointly will sign a definitive agreement and make equity investments in the High Pressure Acid Leaching (HPAL) Project in the Pomalaa Mine, in order to promote sustainable smelting and production of nickel in Indonesia, and work together to make electric vehicle battery manufacturing more cost-effective.

On April 19 Reuters reported : "China's Huayou seeks to build nickel ore processing plant in Philippines - sources....."

On April 21 Zheijiang Huayou Cobalt announced :

Implementing sustainable development, Huayou has once again received international authoritative certification, with its zero-carbon factories increasing to four.....

Jinchuan Group International Resources [HK:2362]

On March 24 Jinchuan Group Co., Ltd. announced :

Jinchuan International announces 2022 annual results. Revenue from cobalt sales soared 51% to US$160.9 million. Production and operation maintained at full capacity. Development project set to drive new growth.....

Chemaf (subsidiary of Shalina Resources)

No news for the month.

GEM Co Ltd [SHE:002340]

On March 24 Market Screener reported :

GEM plans nickel joint venture in South Korea to serve US demand.....The plant would aim to meet the battery material sourcing requirements of the U.S. IRA signed into law last August that requires automakers to source 50% of the critical minerals used in EV batteries from North America or U.S. allies by 2024, rising to 80% by the end of 2026.

On March 28 Market Screener reported :

GEM to build $931 million South Korea Plant to bypass trade restrictions in US, Europe.....

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 " when GEM Co was trading at CNY 5.08.

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 cobalt related news for the month.

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

Umicore state : "We are a worldwide leader in the recycling, refining, transformation and marketing of cobalt and nickel specialty chemicals."

On March 23 Umicore SA announced :

Umicore and PowerCo get official "go" to start joint venture for EU battery materials production.....Umicore and PowerCo, the new battery company of the Volkswagen Group, have obtained full regulatory approvals for their joint venture announced in September 2022. The partners can now swiftly proceed to prepare for large-scale industrial production of cathode active materials [CAM] and precursor materials [PCAM] in Europe.

On March 28 Umicore SA announced : "Umicore publishes Integrated Annual Report 2022....."

On March 30 Umicore SA announced :

Umicore steps up solid-state battery technology development with investment in Blue Current.

On April 17 Umicore SA announced : "Battery Pass Consortium publishes first content Guidance on the EU Battery Passport."

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

On April 3 Sumitomo Metal Mining Co. announced : "FY2023 metal production plans....." (Cobalt numbers were not shown)

MMC Norilsk Nickel [LSX:MNOD] [GR:NNIC] ( OTC:NILSY ) (ADRs to remain in circulation until April 28, 2023 )

On April 21 MMC Norilsk Nickel announced : "Nornickel announces consolidated production results for 1Q 2023....." (Cobalt numbers were not shown)

OZ Minerals [ASX:OZL] ( OTCPK:OZMLF )

On April 17 OZ Minerals announced :

Court approves Scheme. OZ Minerals is pleased to announce that the Federal Court of Australia ("Court") has today made orders approving the scheme of arrangement pursuant to which BHP Lonsdale Investments Pty Ltd, a wholly owned subsidiary of BHP Group Limited (ASX: BHP), will acquire 100% of the shares in OZ Minerals ("Scheme").

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

On March 31 Sherritt International announced :

Sherritt's updated reserve estimate and life of mine plan at the Moa JV more than doubles reserves and extends life of mine to 26 years.

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

On April 19 Nickel 28 announced : "Nickel 28 announces confirmation of largest ever Ramu Cash Distribution and proposed resumption of Normal Course Issuer Bid." Highlights include:

• "Nickel 28 has received confirmation of largest ever cash distribution from Ramu joint venture of US$9.7 million, in addition to repayment of US$18.1 million of outstanding construction debt, reducing remaining debt balance to approximately US$55.8 million as of January 2, 2023,
• Management and the Board have determined to apply to resume Nickel 28's normal course issuer bid given that the trading price of the common shares continues to represent a substantial discount to Nickel 28's net asset value and does not reflect its underlying value.
• The Board reiterates its previous recommendation that shareholders TAKE NO ACTION and NOT to tender to Pelham's predatory, coercive and highly conditional "mini-tender" scheme."

Investors can view the company presentations here .

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

On March 29 Jervois Global Limited announced :

Jervois suspends final construction at Idaho Cobalt Operations. Jervois suspends final construction at Idaho Cobalt Operations ("ICO") due to continuing low cobalt prices and United States (the "U.S.") inflationary impacts on construction costs, to prudently preserve the value of ICO's ore body........Jervois expects to complete construction of and commission ICO when cobalt prices recover, which it also expects will align with cobalt refining capacity in the U.S. brought into operation by Jervois and/or third parties.

On April 18 Jervois Global Limited announced : "Jervois pivots Kokkola refinery expansion BFS to United States." Highlights include:

• "Jervois to undertake a Bankable Feasibility Study ("BFS") for a cobalt refinery located in the United States ("U.S.").
• Funding for the BFS advised to be available from the United States ("U.S.") Department of Defense ("DOD") under the Defense Production Act Title III programme (refer Jervois announcement of 29 March 2023).
• The BFS will be based on the flowsheet, engineering, environmental assessment and other BFS sections already developed by Jervois Finland and AFRY Finland Oy ("AFRY") for the expansion in capacity of Jervois' Kokkola operations by 6,000 metric tonnes per annum of refined cobalt in sulphate.
• Jervois will continue the BFS activities based on situating a 6,000 metric tonne per annum cobalt refinery in the U.S.; product to be exclusively sulphate to focus on demand growth in electric vehicles from American automakers.
• Funding discussions for potential development of both a U.S. cobalt refinery and a Finnish refinery expansion are advancing with governments and industry partners, including automakers.
• Cobalt refinery capacity in both the U.S. and Europe, along with planned restart of São Miguel Paulista refinery in Brazil, will consolidate Jervois's status as a globally significant supplier of advanced cobalt products, with leading ESG credentials."

On April 19 Jervois Global Limited announced : "Updated RAM resource offers opportunity to extend ICO mine life." Highlights include:

• "....Updated ICO Measured and Indicated ("M&I") MRE at 3.78 million metric tonnes ("Mt") grading 0.52% cobalt ("Co"), 0.84% copper ("Cu") and 0.54 grams per metric tonne of gold ("g/t Au"), reported at a cut-off grade ("CoG") of 0.20% Co; update broadly consistent with previous (2020) MRE.
• Updated Inferred Resources increased grade, relative to the previous (2020) MRE, with updated tonnage of 1.59Mt @ 0.51% Co, 0.92% Cu and 0.65 g/t Au; at a 0.20% Co CoG. Co, Cu and Au grades improved 21%, 84% and 18%, respectively....."

On April 20 Jervois Global Limited announced : "Nico Young nickel-cobalt laterite project update." Highlights include:

• "....Environmental studies and metallurgical testwork associated with a Bankable Feasibility Study ("BFS") for Nico Young are ready to advance, in part funded by the A$0.5 million grant from the NSW Critical Minerals Activation Fund.
• Jervois has applied for funding for a Nico Young BFS with the Australian Federal Government Critical Minerals Development Program.
• As part of an ongoing strategic review of its portfolio, Jervois has determined that Nico Young is a non-core asset and intends to commence a divestment process in Q2 2023."

Upcoming catalysts include:

• ? - Idaho Cobalt Operations to complete construction and commissioning when cobalt prices recover.
• ? - First production targeted from the São Miguel Paulista Refinery.

Electra Battery Materials [TSXV:ELBM] ( ELBM )

On April 4 Electra Battery Materials announced : "Electra reports Q4 and year-end 2022 results and provides update on Cobalt Refinery Project and Black Mass recycling trial." Highlights include:

Electra Q4 2022 Highlights and Developments

• "Net income for the period was $10.3 million or $0.31 per share.....
• Held cash and marketable securities of $8.4 million as at December 31, 2022.....
• Raised gross proceeds of US$5.5 million (~CAD$7.3 million).....Gross proceeds raised through the offering will be used to fund the commissioning of Electra's cobalt sulfate refinery.
• Launched a black mass recycling trial at the Company's Ontario refinery complex to recover high-value elements found in shredded lithium-ion batteries, including lithium, nickel, cobalt, copper, manganese, and graphite, using Electra's proprietary hydrometallurgical process.
• Acquired the option to purchase the CAS cobalt-copper project in Idaho....."

Refinery Project update

"......given inflationary price pressures over the past year that have negatively impacted all aspects of the refinery project, including contractor labour rates and costs for concrete, steel, and piping, Electra expects that the re-baseline engineering report will conclude that capital costs for completing the refinery project will be higher than the $105 million budget previously disclosed. The Company will require additional capital to complete final commissioning. Discussions are underway with various commercial partners, government agencies and other parties to address the funding shortfall. Electra will provide an update on its refinery project once the re-baseline engineering report is completed."

Upcoming catalysts include:

• H1 2023 - Target to have their Ontario cobalt refinery operational with ore feed from Glencore.

Investors can view the company presentations here and a recent Trend Investing article on Electra here .

Possible mid-term producers (2024 onwards)

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

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

On April 17 Sunrise Energy Metals Limited announced : "Sunrise Energy Metals Limited ('SRL'): Price - Query."

Upcoming catalysts include:

• 2023 - Possible off-take agreements and project funding/partnering.

Investors can also read the latest company presentation here.

Ardea Resources [ASX:ARL] ( OTCPK:ARRRF )

In total, Ardea has 5.9mt of contained nickel and 380kt 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.

No news for the month.

Upcoming catalysts include:

• 2023 - Possible off-take partner and funding for the GNCP Project. Further potential exploration results including also for lithium, rare earths, and nickel sulphide.

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 April 13 Cobalt Blue Holdings announced :

Environmental Impact Statement [EIS] Update. Broken Hill Cobalt Project (BHCP) is currently preparing the EIS, which will assess the environmental, social and economic implications of the Project. The EIS will be submitted to the Department of Planning and Environment in Q4 2023 for determination of State Significant Development Approval.

Upcoming catalysts include:

• 2023/24 - Possible off-take agreements. Feasibility Study & project approvals. Final Investment decision. Potential project funding.

Investors can watch a CEO interview here and a recent presentation here .

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

No significant news for the month.

Investors can read the latest company presentation here.

Upcoming catalysts include:

• End of 2025 - FID for the Sconi Project.

Havilah Resources [ASX:HAV] [GR:FWL]

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 April 17, Havilah Resources announced : "Drilling commences on Mutooroo Project Area." Highlights include:

• "Mutooroo Project Area ((MPA)) 2023 exploration drilling program has commenced with two drilling rigs.
• The King Dam copper prospect is being drilled for the first time in almost 5 decades to follow up the discovery of copper mineralisation by Seltrust Mining during 1976.
• Many promising prospects will be drilled in coming months with the objective of discovering copper-cobalt-gold mineralisation that could supplement existing Mutooroo JORC mineral resources."

Upcoming catalysts include:

• 2023 - Progress towards the OZ Minerals option to buy Kalkaroo. Mutooroo exploration results.

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 March 31 Aeon Metals announced : "Loan facility increase." Highlights include:

• "Loan facility limit increased by A$5 million.
• All other key terms of the facility remain unchanged.
• Seminal 2023 exploration program at Walford Creek set to commence in May."

For further details see:

Cobalt Miners News For The Month Of April 2023