JRVMF - Cobalt Miners News For The Month Of March 2023

2023-03-29 08:37:16 ET

Summary

• Cobalt spot prices were lower for the month, LME inventory was lower for the month.
• Cobalt market news - EU Commission wants 10% of critical raw materials mined in Europe by 2030. Fastmarkets forecast cobalt surplus of 4,000t in 2023, increasing to 14,000t in 2024.
• Cobalt miners news - CMOC will start producing at second Congo mine next quarter. GEM Co. partners with Mercedes-Benz, CATL to create closed-loop recycling value chain for retired power batteries.
• Jervois Global construction at Idaho Cobalt Operations nearing completion. Aeon Metals announces substantial growth in Walford Creek Mineral Resources.

Welcome to the March 2023 cobalt miners news.

The past month saw a fairly slow month for news as cobalt prices sank lower.

Cobalt price news

As of March 24, the cobalt spot price was at US$15.20/lb , down from US$15.88/lb last month. The LME cobalt price is US$33,265/tonne . LME Cobalt inventory is 134 tonnes, down from the 143 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 15.20 ( source )

Cobalt demand v supply forecasts

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 February 27, Mining.com reported :

A $1.5 billion hoard of copper and cobalt is piling up in Congo.......The huge stash of metal is owned by China’s CMOC Group Ltd, which is locked in a dispute with its Congolese state-owned partner over royalty payments. While its exports were blocked in mid-July, CMOC’s Tenke Fungurume mine has kept running at close to full capacity, simply stockpiling the extra metal until it can resume shipments, according to people familiar with the matter.

On March 7, Reuters reported :

Cobalt supplies to swamp market, pressure prices further. Soaring supplies of battery material cobalt from the Democratic Republic of Congo will swamp the market creating a surplus and putting prices under more pressure this year and next, even though demand is expected to rise. Global supplies of refined cobalt used in the rechargeable batteries that power electric vehicles are expected to surge to around 210,000 tonnes this year, up 24% from 2022, while demand is forecast to rise 8% to 205,000 tonnes in 2024. Liberum analyst Tom Price.......forecasts a cobalt market surplus of 5,570 tonnes in 2023 and 4,315 tonnes in 2024. He expects prices to average $54,840 a tonne this year and $50,320 in 2024, compared with $63,739 last year.

Note: Bold emphasis by the author.

On March 8, Euractiv reported : "LEAK: EU Commission wants 10% of critical raw materials mined in Europe."

On March 16, the European Commission announced :

Critical Raw Materials: ensuring secure and sustainable supply chains for EU's green and digital future...... The Regulation sets clear benchmarks for domestic capacities along the strategic raw material supply chain and to diversify EU supply by 2030:

• At least 10% of the EU's annual consumption for extraction ,
• At least 40% of the EU's annual consumption for processing ,
• At least 15% of the EU's annual consumption for recycling ,
• Not more than 65% of the Union's annual consumption of each strategic raw material at any relevant stage of processing from a single third country.............

The proposed Regulation will be discussed and agreed by the European Parliament and the Council of the European Union before its adoption and entry into force.

On March 17, Fastmarkets reported : "EC names critical, strategic raw materials under proposed new act." All the battery metals including cobalt were included.

On March 22, Fastmarkets reported :

Cobalt metal sustains price rally; longer-term oversupply challenges loom...... Fastmarkets researchers forecast a surplus of 4,000 tonnes in 2023, with that surplus increasing to 14,000 tonnes in 2024. “2023 will be a hard year for nickel and cobalt players. The last five years everyone has been saying we won’t have enough supply, next year we have too much supply. This is the year of oversupply,” a market participant said.

Cobalt company news

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

On February 24, Glencore announced :

Share buy-back programme. Glencore plc (the “Company”) announces the commencement of a programme to make market purchases of its ordinary shares (the “Shares”) of an aggregate value of USD1.5 billion (the “Programme”), subject to market conditions, with intended completion by the time of the Group’s interim results announcement in August 2023......

On March 21, Bloomberg reported :

Glencore set to lose crown as top cobalt Miner to China’s CMOC. CMOC will start producing at second Congo mine next quarter.......The company aims to double production this year, as it brings another massive Congolese mine online in the second quarter. That will propel it past Glencore, company filings show. CMOC has had a turbulent year in Congo, with a dispute over royalty payments halting exports from the Tenke mine since July. It’s kept the operation running, stockpiling copper and cobalt, and CMOC executives told investors on Monday that they’re confident of resolving the issue by the end of March, according to an emailed account of the call from Citigroup Inc....... After spiking last year on the back of booming electric-vehicle sales, cobalt prices have crashed in recent months on a combination of slowing demand from the consumer electronics sector, rising output in Indonesia and worries over a surge in exports from Congo.

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

On March 17, CMOC Group Limited announced :

Annual results announcement for the year ended 31 December 2022..... In 2022, the Company overcame the cyclical fluctuations of commodities and further tapped its endogenous potential. The Company’s operating performance increased steadily, and its operating revenue reached approximately RMB172.991 billion. During the year, the net profit attributable to the parent company amounted to approximately RMB6.067 billion, representing a year-on-year increase of 18.82%; EBITDA reached approximately RMB18.147 billion, and the net operating cash flow reached approximately RMB15.454 billion. The Board proposed to distribute a cash dividend of RMB0.8508 per 10 shares (tax inclusive) to all shareholders of the Company. ....

Zheijiang Huayou Cobalt [SHA:603799]

No cobalt news.

Jinchuan Group International Resources [HK:2362]

No news for the month.

Chemaf (subsidiary of Shalina Resources)

No news for the month.

GEM Co. Ltd. [SHE:002340]

On March 1, GEM Co. Ltd. announced :

From "Green" to "Green": GEM partners with Mercedes-Benz, CATL to create closed-loop recycling value chain for retired power batteries.....

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 news for the month.

Umicore SA [Brussels:UMI] ( UMICY )

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

On March 14, Umicore SA announced :

Umicore Battery Recycling: Capturing profitable growth and enabling a circular and low-carbon battery value chain.....

On March 21, Umicore SA announced :

Umicore accelerates European E-Mobility with Nysa Gigafactory.....Nysa’s annual production capacity is set to reach 20 GWh by the end of 2023 and 40 GWh in 2024, with the potential to rise to over 200 GWh, or 3 million electric vehicles, in the second half of the decade.....

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

No news for the month.

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

On March 17, MMC Norilsk Nickel announced : "Nornickel completed self-assessment for IRMA certification....."

OZ Minerals [ASX:OZL] ( OZMLF )

On February 22, OZ Minerals announced : " Stronger second half after challenging start to 2022 ." Highlights include:

• " Net Profit After Tax of $207 million on net revenue of $1.9 billion.
• EBITDA $693 million and operating margin of 36%.
• Earnings Per Share of 62 cents......"

Sherritt International [TSX:S] ( SHERF )

No news for the month.

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

On February 27, Nickel 28 announced : "Nickel 28 releases Ramu Q4 and full year 2022 operating performance." Highlights include:

• "Ramu Q4 2022 nickel production of 8,480 tonnes, representing a 33% increase from the same period last year and full year production of 34,302 tonnes of contained nickel in Mixed Hydroxide Precipitate (“MHP”), which was a 9% increase from 2021 and represented 105% of nameplate capacity.
• Ramu Q4 2022 cobalt production of 702 tonnes, representing a 21% increase from the same period last year and full year production of 2,987 tonnes of contained cobalt in MHP, essentially flat from 2021.
• Ramu Q4 2022 nickel sales of 13,613 tonnes and full year sales of 37,250 tonnes of contained nickel.
• Ramu Q4 2022 cobalt sales of 1,150 tonnes and full year sales of 3,289 tonnes of contained cobalt......
• Full year 2022 cash costs were US$3.37/lb. of nickel produced, net of byproduct credits, in MHP which consistently ranks as one of the lowest cash costs for an integrated High Pressure Acid Leach operation."

Investors can view the company presentations here .

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

On March 8, Jervois Global Limited announced : "Jervois Annual Report 2022."

On March 16, Jervois Global Limited announced : " Construction at Idaho Cobalt Operations nearing completion." Highlights include:

• "..... Underground, stoping activities have successfully commenced in the mine, with more than 25,000 short tons of mineralised material stored ready for processing .
• Infill drilling continues, with the updated JORC and CIM NI 43-101 Mineral Resources and Reserve Statement remaining on track for delivery in early Q2 2023.
• ICO will become the United States’ only mine supply of cobalt, a critical mineral necessary for industry, defense, electric vehicles and energy generation and distribution in a carbon constrained economy ."

Upcoming catalysts include:

• End Q1, 2023 - Idaho Cobalt Operations to reach nameplate capacity production.
• Q1, 2024 - First production targeted from the São Miguel Paulista Refinery.

Electra Battery Materials [TSXV:ELBM] ( ELBM )

On March 10, Electra Battery Materials announced : "Electra updates Mineral Resource estimate at its Iron Creek Cobalt-Copper Project in Idaho." Highlights include:

• "Indicated resource of 4.4 million tonnes grading at 0.19% cobalt for 18.4 million pounds cobalt and grading at 0.73% copper for 71.5 million pounds of copper.
• Inferred resource of 1.2 million tonnes grading at 0.08% cobalt for 2.1 million pounds of cobalt and grading at 1.34% copper for 36.5 million pounds of copper.
• As a result of infill and step-out drilling completed to date, Electra has upgraded 54% of the Inferred Resource category of the 2019 MRE to the Indicated category in 2023......"

On March 10, Electra Battery Materials announced :

Electra provides corporate update. Electra Battery Materials Corporation...... in accordance with its 2022 Long-Term Incentive Plan approved by shareholders at its November 10, 2022 meeting of shareholders, the Company has issued 421,007 stock options, 313,409 Restricted Share Units [RSU] and 285,417 Deferred Share Units to certain directors, officers, employees, and contractors of the Company.....

On March 13, Electra Battery Materials announced : "

Electra produces lithium from battery recycling trial, significantly improving its project economics.....

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]( SREMF )(formerly Clean TeQ)

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

On February 24, Sunrise Energy Metals Limited announced : " Half-year financial report 31 December 2022."

On March 3, Sunrise Energy Metals Limited announced : " S&P Dow Jones Indices Announces March 2023 Quarterly Rebalance of the S&P/ASX Indices ." Added to the All ordinaries Index.

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] ( 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.

On March 10, Ardea Resources announced : " Interim financial report h alf-year ended 31 December 2022....."

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 March 7, Cobalt Blue Holdings announced : "Half-year financial report 31 December 2022."

On March 22, Cobalt Blue Holdings announced : " Definitive Feasibility S tudy update ." Highlights include:

• " The Broken Hill Cobalt Project ((BHCP)) Definitive Feasibility Study ((DFS)) remains on track for completion by end-3Q....
• Demonstration Plant: The Concentrator Circuit has completed operations and the concentrate is being treated through the kiln to convert pyrite into pyrrhotite and elemental sulphur. The leaching circuit is now operational and first MHP production has been achieved. Large scale commercial samples (up to 100kgs each) will be released shortly.
• Mineralisation and waste rock studies: Resource definition, geotechnical and waste rock characterisation drilling programs were completed in February 2023.
• Permitting: Substantial progress has been made to assess the Project footprint, including soils and ecology.
• Commercial Partner Update: Partner discussions continue......"

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 )

On March 16 Australian Mines announced : "Consolidated interim financial report half year ended 31 December 2022."

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 February 28, Havilah Resources announced : " Quarterly activities and cashflow report - Period ended 31 January 2023." Highlights include:

• " Planned field activities under the OZ Minerals Strategic Alliance exploration drilling and Kalkaroo PFS update Study Program (Study Program) commenced during the quarter under the Approved Transaction with OZ Minerals Limited (OZ Minerals) (ASX: OZL) .
• At the end of the quarter 39 reverse circulation ((RC)) exploration drill holes for 7,458 metres were completed at 4 copper prospects within 15 km of Kalkaroo. 2,332 drill chip samples were sent for assay and complete results are still pending at this time.
• One diamond drilling rig began operating on 2 shifts to obtain drillcore for the Study Program on Mining Lease ((ML)) 6498.
• A temporary 33 person fully catered camp was constructed on site to accommodate OZ Minerals and other contract personnel.
• Havilah’s drilling rig and ancillary equipment were readied for commencement of a planned busy year of exploration drilling within the Mutooroo Project Area.
• Inclusion of the Kalkaroo copper-gold-cobalt project in the Australian Critical Minerals Prospectus 2022, highlighting the appreciable critical minerals potential of the Kalkaroo deposit. ....."

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.

On March 1, Aeon Metals announced : " 31 December 202 2 Interim Financial Report."

On March 15, Aeon Metals announced : "Substantial growth in Walford Creek Mineral Resources." Highlights include:

• "Global Copper Rich resource now potentially Australia’s highest grade, substantial and primary cobalt deposit (33.6 Mt at 0.15% Co), including Amy (8.3 Mt at 0.22% Co).
• Approximately 61.4% of updated Global Mineral Resource in higher confidence M&I classification.
• Contained metal increases across all key metals range from 67% up to 117%.
• Updated Mineral Resource estimates include: Maiden Le Mans Mineral Resource (100% Inferred) of: Copper Rich: 5.3 Mt at 1.75% CuEq (0.86% Cu, 0.09% Co and 1.01% Zn). Cobalt Peripheral: 9.2 Mt at 0.95% CuEq (0.22% Cu, 0.08% Co and 0.75% Zn). Increase in Amy Mineral Resource (100% Inferred) to: Copper Rich: 8.3 Mt at 2.95% CuEq (1.35% Cu, 0.22% Co and 0.74% Zn). Cobalt Peripheral: 3.5 Mt at 1.19% CuEq (0.26% Cu, 0.08% Co and 0.95% Zn). Restated and improved Cobalt Peripheral Mineral Resource for Marley/Vardy (based on 500 ppm cobalt cut-off) of 26.4 Mt at 1.04% CuEq (0.23% Cu, 0.08% Co and 1.02% Zn).
• Proposed mine optimisations at increased production rates to be investigated."

For further details see:

Cobalt Miners News For The Month Of March 2023