NILSY - Cobalt Miners News For The Month Of June 2023

2023-06-24 08:25:41 ET

Summary

• Cobalt spot prices were significantly lower for the month. LME inventory was slightly lower for the month.
• Cobalt market news - Cobalt price has fallen nearly 30% this year due to weak demand and oversupply.
• Cobalt miners news - Huayou Cobalt sets up $1.5B Hungary Cathode Plant. Jervois Global to begin work funded by U.S. Department of Defense to advance U.S. cobalt supply chain security.
• Cobalt Blue identified approximately A$70m in pre-production capital to fund 3,000tpa standalone Kwinana refinery.

Welcome to the June 2023 cobalt miners news.

The past month saw a slow month of news and very depressed cobalt prices.

Cobalt price news

As of June 23, the cobalt spot price was at US$13.08/lb , significantly lower than US$15.53/lb last month. The LME cobalt price is US$28,595/tonne . LME Cobalt inventory is 93 tonnes, down from the 96 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 13.08 (source)

Cobalt demand v supply forecasts

Cobalt supply and demand forecast - Deficits growing from ~2025/26 (forecast as of 2023 by Cobalt Blue, Benchmark Mineral Intelligence, & Rho Motion) ( 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 June 12 Mining.com reported :

Cobalt price has fallen nearly 30% this year. The cobalt price has fallen almost 30% this year to $13.90 a pound, according to Fastmarkets data, amid lackluster global demand and rising supply from the world’s new no. 2 producer, Indonesia. Goldman Sachs is forecasting softness for battery metals including cobalt, lithium and nickel in the second half of 2023 amid an oversupply......The EV sector accounts for 40% of the total cobalt market. “Elsewhere, demand for cobalt in batteries within consumer electronics including laptops and phones will remain similarly grim in light of the global economic slowdown,” Fitch said.

On June 20 Mining Technology reported :

Keeping up with cobalt: demand and opportunity in Australia.....Cobalt consumption over the last decade has tripled globally due to rising demand for electronics and EVs, and the demand is set to double again by 2035......In 2021, EVs overtook smartphones and personal computers as the primary source of demand for cobalt for the first time...... Approximately 9kg of cobalt is used to manufacture each EV battery, and some batteries can have as much as 20kg......With high demands, and increasingly high standards of ethical compliance in mining, many companies are looking to new sources of cobalt, creating a unique opportunity for Australian miners.

Cobalt company news

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

On June 16 Glencore reported :

Glencore and Metals Acquisition Corp [MAC] (MTAL) have today closed the sale and purchase of Glencore’s 100% interest in Cobar Management Pty Ltd (CMPL), the owner of the Cobar copper mine in New South Wales, Australia.

On June 19 Glencore announced : "Cancellation of Treasury shares."

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

No cobalt news for the month.

Zheijiang Huayou Cobalt [SHA:603799]

On June 21 Bloomberg reported :

China’s Huayou Cobalt sets up $1.5 billion Hungary Cathode Plant." Highlights include:

• "Factory is latest big-ticket Chinese investment in Hungary.

• Hungary seeks to become a hub for electric vehicle production.....

Hungary has now vaulted to the regional lead when it comes to the transition to electric vehicles, with four of the 10 largest battery makers now having factories in the country or in the process of setting one up, Szijjarto said. In the past seven years, Hungary has announced 51 investments in the electric vehicle industry valued at 4 trillion forint, or almost $12 billion, he said.......

Jinchuan Group International Resources [HK:2362]

On May 24 Jinchuan Group International Resources announced :

Operational update for the three months ended 31 March 2023. In the First Quarter, the Group’s mining operations produced..... 693 tonnes of cobalt content included in cobalt hydroxide (three months ended 31 March 2022: 1,104 tonnes). In the First Quarter, the Group’s mining operations sold.....49 tonnes of cobalt (three months ended 31 March 2022: 843 tonnes), representing a decrease of approximately 94% year-on-year compared to the corresponding period in 2022.....Generated revenue from sales of cobalt of approximately -US$2.7 million (including approximately US$0.9 million from sale of cobalt in the First Quarter and a downward revision of provisional price previously recognised of approximately US$3.6 million due to the drop in Metal Bulletin (“MB”) cobalt price in the First Quarter) (three months ended 31 March 2022: US$41.7 million). Moreover, the revenue generated from trading of externally sourced mineral and metal products amounted to approximately US$67.2 million, representing a decrease of approximately 47% as compared to approximately US$125.5 million in the corresponding period in 2022.

Chemaf (subsidiary of Shalina Resources)

No cobalt news for the month.

GEM Co Ltd [SHE:002340]

No cobalt 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.

On June 7 Eurasian Resources Group announced :

Eurasian Resources Group named by ICDA as the best-in-class for ESG Governance at the Chrome Industry Sustainability Awards 2023.

Umicore SA [Brussels:UMI] ( UMICY )

On June 20 Umicore SA announced :

Umicore speeds up its EV battery materials R&D with unique large-scale prototyping center for solid-state battery materials......

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

No cobalt related news.

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

On May 23 MMC Norilsk Nickel announced : "Nornickel presents 2022 sustainability highlights....."

Sherritt International [S] ( SHERF )

No news for the month.

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

On June 1 Nickel 28 announced : "ISS rejects Pelham's demand for wholesale change at Nickel 28." Highlights include:

• "ISS Rejects Pelham Nominees Edward [NED] Collery, Daniel Burns, Marilyn Spink, and Ross B. Levin for Nickel 28 Board.
• ISS Acknowledges Vital Role Played by Nickel 28 Board and Management in the Ramu Project.
• ISS Calls Pelham Plan Speculative, Says Wholesale Removal of Nickel 28 Board Could Jeopardize Strong Shareholder Returns."

Investors can view the company presentations here .

Electra Battery Materials [ELBM] ( ELBM )

On May 24 Electra reported :

Electra provides corporate update....announced that Garett Macdonald has resigned as a member of the Company’s Board of Directors....

On June 9 Electra reported : "Electra names new CFO.....Peter Park."

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

Possible mid-term producers (2024 onwards)

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

On June 16 Jervois Global Limited announced : " Jervois to begin work funded by U.S. Department of Defense to advance U.S. cobalt supply chain security ." Highlights include:

• " Jervois entered an agreement for US$15 million in funding from the United States (“U.S.”) Government for drilling at its Idaho Cobalt Operations mine (“ICO”) and to do a bankable feasibility study for construction of a cobalt refinery in the U.S.
• ICO’s mineral resource and reserve is the largest and highest grade confirmed cobalt orebody in the U.S.
• Cobalt is a critical mineral as declared by the U.S. Government due to cobalt’s defense, military and energy transition applications ."

On June 23 Jervois Global reported :

Jervois awarded €12 million grant for Finland cobalt refinery expansion......Jervois has been awarded a conditional €12 million grant from the Finnish government under the State business development body, Business Finland, to partially fund a potential expansion of Jervois’ cobalt refining capacity in Kokkola, Finland.

Upcoming catalysts include:

• Any announcements regarding Jervois Global's ATVM loan application to the U.S. Department of Energy
• Restart of final construction at ICO. News regarding the refinancing of the restart of the São Miguel Paulista Refinery.

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

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

No significant news for the month.

Upcoming catalysts include:

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

Investors can also read the latest company presentation here.

Ardea Resources [ARL] ( 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 cobalt 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] ( 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 June 5 Cobalt Blue Holding announced : "Definitive Feasibility Study update. COB is managing the delivery of the Broken Hill Cobalt Project (BHCP) Definitive Feasibility Study ((DFS)). This update provides insights on a range DFS activities including the Demonstration Plant, Kwinana Refinery Project and Australian Government Support." Highlights include:

• "Demonstration Plant: Recent activities focused on processing larger volumes of concentrate through to Mixed Hydroxide Precipitate (MHP) circuit. Nickel/cobalt sulphate samples produced.
• Permitting: Environmental surveys complete. Environmental Impact Statement [EIS] in preparation.
• Kwinana Refinery Project Update: Refinery concept study has identified approximately A$70m in pre-production capital to fund 3,000tpa standalone refinery. We are engaged with a potential partner that owns a suitable property in the Kwinana district where we expect to commence refinery construction next year. The potential partner is further determining an appropriate level of equity ownership in the Kwinana Refinery Project via a funding contribution. See below to download the full Media Release.
• Australian Government Support: Critical Minerals Accelerator Initiative (CMAI) grant second installment ($6m) expected in June 2023. The recently announced compact between the US and Australia further advances the prospects for Australian critical minerals projects.
• Cobalt price review: Cobalt supply/demand imbalance is expected to ease from 2024 as demand growth overtakes output for a sustained period with prices back toward long-term averages."

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] ( 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 May 26 Havilah Resources announced : "Quarterly activities/appendix 5B cash flow report." Highlights include:

• " Curnamona Province Strategic Alliance exploration drilling and Kalkaroo PFS update Study Program (Study Program) continued during the quarter in accordance with the agreed work programs.
• Favourable attributes of the Deep Well and Johnson Dam mineralised prospects are the comparatively thin overburden, lack of historic drilling, associated critical minerals and proximity to the Kalkaroo deposit.
• Two diamond drilling rigs operated continuously on Mining Lease ((ML)) 6498 for most of the quarter to obtain drillcore for the Study Program.
• Mutooroo Project Area ((MPA)) 2023 exploration drilling program commenced with two RC drilling rigs.
• The targeted mineralised lode zones were intersected at the King Dam and Mingary Mine prospects.
• Interim Financial Report for the financial half-year ended 31 January 2023 was released.
• Subsequent to the end of the quarter, BHP Group Limited (BHP) announced on 2 May 2023 the completion of the OZ Minerals Limited (OZ Minerals) acquisition and implementation of the scheme of arrangement for BHP Lonsdale Investments Pty Limited, a wholly owned subsidiary of BHP, to acquire 100% of the shares in OZ Minerals (formerly ASX: OZL). Accordingly, BHP is now the ultimate parent company of OZ Minerals.
• The agreements with OZ Minerals remain intact and, at the time of compilation of this report, the various work programs are continuing as planned. BHP Integration Team Members familiarised themselves with the Kalkaroo project during a recent site visit. "

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]( AEOMF )

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

No news for the month.

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 May 30 Alliance Nickel Limited announced : " NiWest Nickel-Cobalt Project update." Highlights include:

• " As part of the offtake customer qualification process, six tonnes of NiWest ore shipped to SGS in Canada for pilot plant processing into premium battery grade product.
• Contractor pricing for determining DFS mining costs progressing well and follows recent site visits by shortlisted mining contractors .
• Discussions advancing with rail logistics providers Qube and Aurizon, for the import and transport of sulphur through the Port of Esperance.
• DFS work programs progressing to plan and budget with study manager Ausenco expected to deliver DFS in Q4 2023 .
• Geotechnical assessment drilling completed for the Mt Kilkenny mine pit as well as planned infrastructure construction sites around the refinery, heap leach pads and evaporation ponds.
• Infill drilling at Mt Kilkenny completed with results being used to define final mine pit designs as well as adding additional Ore Reserve tonnage.
• Calcrete drilling completed at Sturt Meadows and will result in an update to previous calcrete JORC Resource ."

For further details see:

Cobalt Miners News For The Month Of June 2023