SREMF - Cobalt Miners News For The Month Of November 2023

2023-11-26 07:28:33 ET

Summary

• Cobalt spot prices were flat for the month. LME inventory was flat for the month.
• Cobalt market news - Government of Canada to enhance critical minerals sector with launch of $1.5 billion Critical Minerals Infrastructure Fund.
• Cobalt miners news - Glencore own sourced cobalt production of 32,500 tonnes was in line with the comparable 2022 period. Alliance Nickel Resource update has resulted in a 9.6% increase.
• The Metals Company ("TMC") and PAMCO sign binding MOU to complete FS to process polymetallic nodules into battery metal feedstocks.

Welcome to the November 2023 cobalt miners news.

The past month saw flat cobalt prices continue and a rather flat month of news.

Cobalt price news

As of November 24, the cobalt spot price was at US$14.86/lb , effectively the same as US$14.85/lb last month. The LME cobalt price is US$32,510/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 at Benchmark Mineral Intelligence or Fast Markets MB.

Cobalt spot prices - 5-year chart - USD 14.86 ( source )

Cobalt demand v supply forecasts

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 )

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 October 31, the Government of Canada announced :

Government of Canada to enhance critical minerals sector with launch of $1.5 billion Infrastructure Fund...The CMIF will address key infrastructure gaps to enable sustainable critical minerals production and to connect resources to markets. With up to $1.5 billion available over seven years, the fund will support clean energy and transportation projects that will enable critical mineral development...“Our investments will help the mining industry develop important enabling and supporting infrastructure such as roads and energy facilities required prior to construction of mines. Canada has an opportunity to be a substantial global producer of critical minerals. We are pleased to play a role in unlocking critical mineral deposits, which are essential for Canada’s move to net zero and economic development in northern communities.”

On November 14, Investopedia reported :

Rare earth minerals are more in demand than ever—Here are the ones to know. Demand for rare earth minerals and metals has soared over the past few years, as more industries and countries transition to cleaner energy sources...China refines 68% of the world’s nickel, 59% of its lithium, and 73% of all cobalt. China also handles 85% of rare earth processing...Demand for cobalt jumped 70% from 2017 to 2022, and continues to rise as clean energy applications for cobalt rose to 40% over the same period...The Democratic Republic of the Congo is the leading producer of cobalt, and made up more than 70% of the world’s cobalt production in 2022. Indonesia is another top producer of cobalt, and tripled its cobalt production in 2022.

On November 23, Metal Tech News reported :

Cobalt crashes – will it rise again?...The August 2022 U.S. Inflation Reduction Act (IRA) has also impacted the global cobalt supply chain, with neither of the major suppliers – the DRC nor Indonesia – are in any position to supply cobalt compliant the tax and other IRA incentives in the near future...New battery chemistries continue to increase in efficiency, requiring less and less cobalt. Tesla and other automotive manufacturers and users are attempting to shift to cobalt-free chemistries like lithium iron phosphate and lithium manganese oxide for their EVs where possible. "We expect further downside for cobalt prices in the near term as demand from the EV battery sector wanes while increasing global production keeps inventories healthy," market analyst Fitch Solutions said in a recent report.

Cobalt company news

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

On October 30, Glencore announced :

Third quarter 2023 production report...Own sourced cobalt production of 32,500 tonnes was in line with the comparable 2022 period...

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

On October 27, CMOC Group announced : "2023 third quarterly financial report..."

Zheijiang Huayou Cobalt [SHA:603799]

On November 7, Zheijiang Huayou Cobalt announced :

Revenue and profits both emerge tenth place. On November 1st, Zhejiang Business Magazine released the full list of revenue and profit rankings for A-share listed companies in Zhejiang for the first three quarters of 2023, with a total of 691 companies on the list. Huayou Cobalt achieved an impressive milestone, ranking tenth with a revenue of 51.091 billion CNY and a net profit of 3.013 billion CNY, demonstrating our commitment to leading high-quality development with high-level openness...

Jinchuan Group International Resources [HK:2362]

On November 16, Jinchuan Group International Resources announced :

Operational update for the nine months ended 30 September 2023...During the Period, the Group’s mining operations produced...1,672 tonnes of cobalt content included in cobalt hydroxide (nine months ended 30 September 2022: 3,468 tonnes). During the Period, the Group’s mining operations sold...1,067 tonnes of cobalt (nine months ended 30 September 2022: 3,194 tonnes), representing a decrease of approximately 67% year-on-year compared to the corresponding period in 2022...generated revenue from sales of cobalt of approximately US$15.4 million (nine months ended 30 September 2022: approximately US$129.1 million), representing approximately 88% year-on-year decrease compared to the corresponding period in 2022. Moreover, the revenue generated from trading of externally sourced mineral and metal products amounted to approximately US$147.4 million (nine months ended 30 September 2022: approximately US$210.5 million), representing a decrease of approximately 30% as compared to the corresponding period in 2022...

Chemaf (subsidiary of Shalina Resources)

On October 27, Reuters reported :

Trafigura's Congo partner Chemaf could seek buyers amid cash crunch...The privately-owned copper and cobalt miner has asked for offers to wholly acquire the company, it said in the Sept. 8 document that invites potential investors to bid. A Chemaf spokesperson declined to comment. Chemaf said in the document that it has $690 million in debt and about $590 million of the borrowings were arranged by Trafigura.

On November 7, Chemaf announced :

Strategic review update...To date, over US$570 million has been invested in the development of Etoile Phase 2 and Mutoshi with approximately US$250-300 million required to bring Etoile Phase 2 and Mutoshi to production. In August 2023, CRL commenced a strategic review process in respect of Chemaf with a view to securing funding to bring Etoile Phase 2 and Mutoshi to production as quickly as possible given the significance of these projects to the DRC and its people. CRL’s strategic review process is being led by CRL’s strategic advisor, Jeremy Meynert. As part of this process, CRL is evaluating all possible investment alternatives with respect to Chemaf.

GEM Co Ltd [SHE:002340]

No cobalt 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] ( UMICY )

On October 31 Umicore SA announced :

Umicore and Ignitis Renewables enter into long-term PPA to supply renewable electricity to Umicore’s EV battery materials plant in Poland...

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

On November 8, Sumitomo Metal Mining Co. announced :

FY2023 Capital Expenditure and Total Investment Plan. Sumitomo Metal Mining Co., Ltd. plans a total 193.4billion yen of capital expenditures on a consolidated basis during the fiscal year 2023 (April 1, 2023 — March 31, 2024). The total investment represents a 37% increase from that of FY2022.

On November 8, Sumitomo Metal Mining Co. announced : "Consolidated financial results for the second quarter ended September 30, 2023..."

On November 16, Sumitomo Metal Mining Co. announced :

FY2023 2nd quarter progress of Business Strategy...Decline in metal prices put pressure on profits. Market environment surrounding the materials business continues to stagnate. While the impact of soaring energy and other prices has been easing and operating cost worsened, profits declined by 115.3 billion yen.

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

On November 3, MMC Norilsk Nickel announced : "Nornickel’s Board of Directors approves 2030 Socially Sustainable Development Strategy..."

On November 13, MMC Norilsk Nickel announced : "Nornickel and Rosatom to look into nuclear power potential in Norilsk..."

Sherritt International [TSX:S] ( SHERF )

On November 1, Sherritt International announced : " Sherritt reports third quarter 2023 results." Highlights include:

• "Sold approximately 97% of the total 2,082 tonnes of cobalt received under the Cobalt Swap agreement; remaining cobalt expected to be sold and all cash to be received by end of year.
• Available liquidity in Canada was $104.2 million.
• Sherritt’s share of finished nickel and cobalt production at the Moa JV was 3,841 tonnes and 410 tonnes compared to 4,443 tonnes and 419 tonnes in Q3 2022, respectively.
• Net direct cash cost (NDCC) ⁽¹⁾ was US$7.24/lb compared to US$6.76/lb in Q3 2022 primarily due to the impact of lower nickel sales volumes, lower fertilizer by-product credits and higher maintenance costs, partly offset by higher cobalt by-product credits.
• Net loss from continuing operations was $24.8 million, or $(0.06) per share in Q3 2023, compared to a net loss from continuing operations of $26.9 million, or $(0.07) per share, in Q3 2022.
• Adjusted EBITDA ⁽¹⁾ was $(9.1) million compared to $37.4 million in Q3 2022 primarily as a result of delayed nickel sales, lower fertilizer sales volumes and lower cobalt and fertilizer average-realized prices ⁽¹⁾ ....
• Based on its results to date, Sherritt has provided updates to its 2023 guidance."

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

On November 8, Nickel 28 announced : "Nickel 28 releases Ramu Q3 2023 operating performance." Highlights include:

• "Ramu Q3 2023 production of 851 tonnes of contained cobalt in MHP, compared to 759 tonnes in Q3 2022.
• Fast Markets average cobalt price of US$16.58/lb. in Q3 2023, a 37% decrease from the same period last year. The average 2023 YTD Fast Markets cobalt price was $16.50/lb., compared to an average Fast Markets cobalt price of $33.35/lb. for same period 2022."

Electra Battery Materials [TSXV:ELBM] ( ELBM )

On November 16, Electra Battery Materials announced : "Electra reports Q3 2023 results and provides update on Battery Material Refinery Project." Highlights include:

Electra Q3 2023 Highlights and Developments

• "Closed concurrent brokered and non-brokered private placements for aggregate gross proceeds of $21.5 million. Under the terms of the equity financings, the Company issued 19,545,454 units in aggregate, at a price of $1.10 per unit with each unit consisting of one common share and one common share purchase warrant.....
• Held cash and marketable securities of $15.7 million as at September 30, 2023, up from $7.4 million as at June 30, 2023...
• Net loss for the quarter was $9.2 million or $0.20 per share...
• Operating loss for Q3 2023 was $4.2 million, down from $4.8 million for Q3 2022. The decline was primarily driven by lower exploration costs for Iron Creek, Electra’s exploration assets in Idaho.
• Progressed with the first plant-scale recycling of black mass material in North America using Electra’s proprietary hydrometallurgical process. Progress in Q3 was marked by recoveries of critical metals, including lithium, nickel, cobalt, copper, manganese, and graphite, needed for the EV battery supply chain, and the production of high-quality nickel-cobalt mixed hydroxide, graphite, and lithium carbonate products.
• Made the first customer shipment of nickel-cobalt mixed hydroxide precipitate (MHP) produced at the Company’s refinery complex north of Toronto from recycled battery material. To date, Electra has shipped approximately 20 tonnes of nickel-cobalt MHP to customers.
• Extended and expanded the terms of its battery-grade cobalt supply agreement with LG Energy Solution whereby Electra will now supply up to 19,000 tonnes of contained cobalt in sulfate over a five-year period beginning in 2025, up from 7,000 tonnes over a three-year period when the supply agreement was first announced in September 2022...
• Announced receipt of a notice from The Nasdaq Stock Market LLC (“Nasdaq”) stating that the Company is not in compliance with the minimum bid price requirement of US$1.00 per share under Nasdaq’s Listing Rule 5550(a)(2) based upon the closing bid price of the Company’s common shares for the 30 consecutive business days prior to the date of the Notice, September 21, 2023. The Company has 180 calendar days from the date of the Notice, or until March 19, 2024, to regain compliance with the Minimum Bid Requirement, during which time the Company’s common shares will continue to trade on Nasdaq."

Highlights Subsequent to Quarter End

• "Extended the processing of black mass material at its refinery complex based on the successes of its battery recycling trial, which have included improved recoveries of high-value elements, higher metal content in saleable products produced, and reduced use of reagents. Additional MHP product deliveries to customers are expected in Q4.
• Received US$5 million in long-lead, critical equipment, including pressure vessels, tanks, and structural steel, needed for completion of the Company’s cobalt sulfate refinery. Installation of the equipment delivered at site will occur as Electra secures capital funding requirements for its refinery project."

Possible mid-term producers (2025 onwards)

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

On October 26, Jervois Global Limited announced : "Jervois Global Limited quarterly activities report to 30 September 2023." Highlights include:

Jervois Finland:

• "Adjusted EBITDA1 of US$0.5 million and US$8.2 million cash flow from operations of in the quarter.
• Q3 2023 cobalt sales of 1,216 metric tonnes."

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

• "Exploration drilling commenced at Sunshine deposit at ICO, fully refundable under US$15.0 million Department of Defense (“DoD”) Defense Production Act Title III funding agreement.
• U.S. cobalt refinery site selection process commenced and AFRY USA LLC appointed to undertake Basic Engineering and Bankable Feasibility Study (“BFS”).
• BFS scope is a 6,000 metric tonne per annum contained cobalt greenfield U.S. refinery to produce cobalt sulphate for the U.S. auto industry.
• Site selection and BFS costs fully refundable under funding agreement with DoD."

São Miguel Paulista (“SMP”) nickel and cobalt refinery, Brazil:

• "Engagement with parties on partner financing advancing, with aim to conclude the process by end of 2023."

Corporate:

• "US$50.0 million capital raise closed in July/August 2023.
• End September 2023 quarter cash balance of US$54.9 million, US$44.5 million physical cobalt inventories and drawn senior debt of US$148.9 million."

On November 20, Jervois Global Limited announced : "Jervois commences U.S. government-funded resource extension programme at ICO’s RAM deposit."

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. Any news regarding the refinancing of the restart of the São Miguel Paulista Refinery.

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

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

On October 26, Sunrise Energy Metals Limited announced : "Quarterly activities report." Highlights include:

• "The Company continues to progress discussions with potential equity funding and offtake partners for the Sunrise Battery Materials Complex (‘Sunrise Project’).
• As part of recent and ongoing engagement with US auto manufacturers and various US government agencies, the Company is evaluating the option of locating the Sunrise Project’s nickel and cobalt refinery in the United States: A US-based refinery will potentially open up opportunities for grant funding pursuant to a number of US Government programs, as well as possible involvement by US-based strategic investors. The Company plans to undertake the evaluation in concert with US counterparties, and to that end has engaged a US-based advisor to assist with financing options.
• Ongoing work streams to advance the fully integrated Sunrise Project continued with activities focussed on: Advancing work on the electrical transmission line ((ETL)) work scope. Power systems studies that are required as part of the ETL connection agreement have commenced. Work continues to advance on the design and planning of civil and overhead services modifications required along the oversized transport route.
• Field exploration activities continued to advance during the quarter with a focus on expanding our understanding of the geological potential of our large tenement package in the Macquarie Arc, New South Wales."

Ardea Resources [ASX:ARL] ( 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 October 30, Ardea Resources announced : "Quarterly operations report for the quarter ended 30 September 2023." Highlights include:

• "...Analysis of the environmental approval’s pathway schedule.
• Finalising the environmental baseline studies, notably spring season flora.
• Planning and preparation for the DFS, including the development of: Project operations procedures. Study and project execution schedules update. Precedent legal documents; and Scopes of Services.
• Refining DFS metallurgical testwork programs.
• Developing a detailed mine plan Scope of Work.
• Refining the Measured Resource seven year production profile, including infill drill hole spacing and metres to be drilled for the DFS."

On November 6, Ardea Resources announced : "Retraction of Peer Comparison chart."

Upcoming catalysts include:

• 2023/24 - Possible off-take partner agreement from Japanese consortium (MOU already signed) and funding for the GNCP Project. Further potential exploration results including also for lithium, rare earths, and nickel sulphide.

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 October 31, Cobalt Blue Holdings announced : "September 2023 quarterly activities report." Highlights include:

Broken Hill Cobalt Project ((BHCP)) Activities

• "Definitive Feasibility Study update.
• Demonstration Plant operations.
• Resource update.
• Geotechnical Investigations.
• Environmental Assessments.
• Mining Lease Application

Refinery Development Program

• "Strategy.
• Refinery Partner.
• Cost Study.
• Piloting Program.
• Permitting...."

Australian Mines [ASX:AUZ] ( AMSLF )

On October 27, Australian Mines announced : "Quarterly activities report for period ended 30 September 2023." Highlights include:

Sconi Battery Minerals Project:

• "Granting of ML 10368: Australian Mines’ wholly owned subsidiary Sconi Mining Operations Pty Ltd was granted Mining Lease 10368 for the Greenvale mining area by the Queensland Government Department of Resources on 4 July 2023. This mining lease, combined with the Lucknow and Kokomo mining leases, contains the critical battery minerals resources for the Sconi Nickel-Cobalt-Scandium Project in North Queensland.
• Environmental Impact Statement: A decision by the Federal Government’s Department of Climate Change, Environment, Energy and Water ((DCCEEW)) on the Environmental Protection and Biodiversity Conservation ((EPBC)) referral was made on 24 July 2023. which: Classified the Sconi project is a “controlled action” and consideration is required of the potential impacts on listed threatened species and communities and the environment...
• Permitting: On 29 September 2023, AUZ lodged an application with the Queensland Department of Resources for the five lease areas for infrastructure and haul road connections at the Sconi Project area. These additional permits will form part of the greater Sconi Battery Minerals Project area.
• Exploration: Field-based surface rock and soil sampling exploration activities were conducted on prospective ground previously identified by an independent review at the Sconi mining and exploration leases to potentially identify additional nickel, cobalt and scandium mineral deposits. Drill programs and schedules are being developed to further test this ground for potential resource addition.
• Application to Queensland Critical Minerals and Battery Technology Fund...
• Strategic Collaborative Partner: AUZ continues discussions to secure a Strategic Collaborative Partner to assist in driving the project deliverables as we work towards our goal of FID by the end of 2025/early 2026..."

Upcoming catalysts include:

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

Havilah Resources [ASX:HAV] [GR:FWL] ( 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 ( optioned to Oz Minerals - now owned by BHP Group), 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 October 30, Havilah Resources announced :

Annual report 2023...This year Havilah was involved in a copper exploration and development alliance on its Curnamona Province tenements, firstly with OZ Minerals, and then with BHP subsequent to the takeover. This successful, cooperative alliance provided funding for work on both the Kalkaroo copper-gold-cobalt deposit (‘Kalkaroo’) and on several copper prospects in the surrounding area, which has substantially benefited Havilah...

For further details see:

Cobalt Miners News For The Month Of November 2023