2023-09-22 05:49:40 ET
Summary
- Cobalt spot prices were flat for the month. LME inventory was about the same for the month.
- Cobalt market news - Fastmarkets: Low demand, oversupply weigh on cobalt market as the market shifts towards LFP batteries with no cobalt. S&P Global forecasts cobalt deficit in 2027.
- Cobalt miners news - CMOC could overtake Glencore with cobalt production boost. Huayou Cobalt, Vale commits to Indonesian Huali MHP project.
- Cobalt Blue successfully produces a cobalt mixed hydroxide precipitate. Alliance Nickel Limited Letter of Support received from Export Finance Australia for the NiWest Nickel-Cobalt Project.
Welcome to the September 2023 cobalt miners news.
The past month saw a continued weak cobalt market weighed down by low cobalt prices. It was a very quiet month for news.
Cobalt price news
As of September 22, the cobalt spot price was at US$14.85/lb , about the same as US$14.84/lb last month. The LME cobalt price is US$32,490/tonne . LME Cobalt inventory is 92 tonnes, almost the same as the 93 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 14.85 ( source )
Cobalt demand v supply forecasts
You can view the latest Trend Investing cobalt demand v supply article here .
Cobalt supply and demand forecast - Deficits growing from ~2025/26 (forecast as of 2023 by Cobalt Blue, Benchmark Mineral Intelligence, & Rho Motion) ( source )
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 September 15 S&P Global reported :
Cobalt caught in the commodities cycle. Cobalt has slid into a downcycle in 2023 to date as demand growth slowed and supply increased, but industry participants and analysts say the tide will soon turn.
S&P Global Intelligence cobalt demand v supply forecast as of Aug. 2023 (deficit in 2027) ( source )
On September 15 Fastmarkets reported :
Low demand, oversupply weigh on cobalt market | European Battery Raw Materials 2023. The combination of slow demand and oversupply has been putting pressure on the price for cobalt, with part of that pressure coming from the changing preference in battery chemistry toward lithium-iron-phosphate (LFP) batteries and away from nickel-cobalt-manganese (NCM) batteries... the oversupply of cobalt remained a concern for market participants, especially after mining company China Molybdenum (CMOC) reached a consensus on royalties with state-owned miner Gécamines in Democratic Republic of Congo ((DRC)), which were at the root of a dispute that led to an export ban.
On September 17 CME Group announced :
CME Group to launch cobalt hydroxide futures on October 23. CME Group, the world's leading derivatives marketplace, today announced that it will launch Cobalt Hydroxide futures on October 23, pending all relevant regulatory reviews. This is the fourth battery metals futures contract CME Group has launched in response to evolving hedging needs within the rapidly growing electric vehicle space..."As demand continues to grow, it has become more important to manage the price risk between global, standard-grade cobalt metal and the local hydroxide price delivered into China, where hydroxide is refined into battery-grade material." Cobalt Hydroxide futures will be financially-settled based on the Fastmarkets' cobalt hydroxide price assessment.
Cobalt company news
Glencore [HK:805] [LSE:GLEN] ( GLCNF )
No cobalt related news for the month.
CMOC Group Limited [HKSE:3993] [SHE:603993] ( CMCLF ) (formerly China Molybdenum)
On August 25, Market Screener reported :
CMOC Group Limited reports earnings results for the half year ended June 30, 2023... For the half year, the company reported sales was CNY 86,726.26 million compared to CNY 91,766.81 million a year ago. Revenue was CNY 86,726.26 million compared to CNY 91,766.81 million a year ago. Net income was CNY 703.14 million compared to CNY 4,147.93 million a year ago. Basic earnings per share from continuing operations was CNY 0.033 compared to CNY 0.193 a year ago. Diluted earnings per share from continuing operations was CNY 0.033 compared to CNY 0.193 a year ago.
On September 14 Benchmark Mineral Intelligence reported :
CMOC could overtake Glencore with cobalt production boost. Chinese miner CMOC's new production target for copper next year is set to significantly increase its cobalt outlook.
Zheijiang Huayou Cobalt [SHA:603799]
On August 28 Argus media reported :
Huayou, Vale commit to Indonesian Huali MHP project. Major Chinese battery metals producer Huayou Cobalt has signed a definitive agreement with Vale Indonesia (PTVI) to develop a production plant for mixed hydroxide precipitate (MHP) in Indonesia's south Sulawesi province. Huali Nickel Indonesia, which is on target to start production in early 2027, will have a nameplate capacity of 60,000 t/yr nickel metal equivalent for nickel and 5,000 t/yr for cobalt with the MHP output, using the high-pressure acid leaching (HPAL) process. The MHP will be used to manufacture electric vehicle (EV) batteries.
Jinchuan Group International Resources [HK:2362]
No cobalt related news.
Chemaf (subsidiary of Shalina Resources)
No news for the month.
GEM Co Ltd [SHE:002340]
No significant 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 August 25, Eurasian Resources Group announced :
ERG notes that the SFO has officially closed its long-standing investigation into ENRC with no charges brought...
On August 28, Eurasian Resources Group announced :
ERG Africa's Boss Mining signs Community Development Plan Agreement with new community partners in the DRC... The official signing of the five-year social development plan, held on 24 August 2023 in Kambove, marked the culmination of consultation and dialogue between Boss Mining, local communities, and government stakeholders.
Umicore SA [Brussels:UMI] ( UMICY )
No news for the month.
Sumitomo Metal Mining Co. (TYO:5713) ( Sumitomo Metal Mining Co., Ltd. (STMNF) Stock Price Today, Quote & News )
No significant news for the month.
MMC Norilsk Nickel [LSX:MNOD] [GR:NNIC] ( NILSY )
No cobalt related news for the month.
Sherritt International [TSX:S] ( SHERF )
No news for the month.
Nickel 28 [TSXV:NKL] [GR:3JC] ( CONXF )
No news for the month.
Investors can view the company presentations here .
Electra Battery Materials [TSXV:ELBM] ( ELBM )
No cobalt news for the month.
Investors can view the company presentations here and a Trend Investing article on Electra here .
Possible mid-term producers (2025 onwards)
Jervois Global Limited [ASX:JRV] [TSXV: JRV] ( JRVMF ) [FRA: IHS] (formerly Jervois Mining)
On September 1, Jervois Global Limited announced :
Jervois Global Limited ("Jervois" or the "Company") (ASX: JRV) (TSX-V: JRV) (OTC: JRVMF) has closed the second US$5.1 million tranche of the US$25.0 million Unsecured Convertible Note offering (the "Note Offering") to Millstreet Credit Fund LP (the "Noteholder") following approval of the Company's ordinary shareholders at a general meeting held in Melbourne, Australia on Monday 28 August 2023...
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 [ASX:SRL] ( SREMF ) (formerly Clean TeQ)
Sunrise Energy Metals has 132 kt contained cobalt at their Sunrise project.
No significant news for the month.
Investors can also read the latest company presentation here.
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 August 30, Ardea Resources announced :
Successful A$16M capital raising... at A$0.70 per share... Funds raised will primarily be used for early DFS works, critical mineral exploration including nickel sulphide, finalisation of Strategic Partner Agreements and working capital.
Upcoming catalysts include:
- 2023 - Possible off-take partner agreement (MOU already signed) 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 September 11, Cobalt Blue Holdings announced :
Bulk Mixed Hydroxide Precipitate (MHP) produced. Successful operations continue at the Broken Hill Cobalt Project (BHCP) Demonstration Plant that provide data and supporting studies for the Definitive Feasibility Study ((DFS)). In recent weeks, our operators have produced over 100kg of Mixed Hydroxide Precipitate (MHP). These samples will be used in engineering studies needed to evaluate and specify equipment for the BHCP processing facility and for international evaluation as part of our partner program...
On September 20, Cobalt Blue Holdings announced : "Cobalt Blue's publishes 3rd Annual Sustainability Report..."
Investors can watch a CEO interview here and a presentation here .
Australian Mines [ASX:AUZ] ( AMSLF )
No significant news the month.
Investors can read the latest company presentation here.
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 ), 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 August 31, Havilah Resources announced : "Quarterly activities and cash flow report - Period ended 31 July 2023." Highlights include:
- "BHP's recently completed interim assessment of the Kalkaroo copper-gold-cobalt project (Kalkaroo or the Project) has largely substantiated Havilah's previous pre-feasibility study [PFS] conclusions and found no fatal flaws in the Project.
- First phase works for the Kalkaroo PFS update Study Program (Study Program) are complete including a 31 hole diamond drilling program on the Kalkaroo mining lease.
- Multiple technical workstreams are being consolidated by the BHP Think & Act Differently (TAD) Study team to de-risk the Project and increase confidence in the key value drivers of metal recovery, operating costs and capital costs.
- Strategic Alliance reverse circulation drilling returned significant copper intersections with commonly associated gold, cobalt, REE, uranium and/or molybdenum at Deep Well, Johnson Dam and Homestead, substantially upgrading the discovery potential of each of these prospects.
- Mutooroo Project Area 2023 exploration drilling at the Mingary Mine and King Dam prospects has confirmed and extended previously known copper-gold mineralisation.
- Acquisition of the McDonald Hill iron ore tenement (EL 6299) located adjacent to the Transcontinental Railway line, which presents the possibility of selectively mining the steeply dipping higher grade iron ore horizons."
On September 15, Havilah Resources announced : "Multiple new geophysical targets at Mutooroo." Highlights include:
- "Merged airborne electromagnetic [AEM] survey data has identified several anomalous features that could be reflecting subsurface sulphide mineralisation. Ground electromagnetic [EM] survey follow up is currently in progress and will generate more detailed data for better modelling control and drill targeting.
- The Mutooroo orebody shows a strong AEM response that extends into an adjoining partially drilled area to the north, which offers good potential for discovery of additional sulphide resources.
- Havilah's drilling crew continue to drill high priority targets surrounding Mutooroo."
Upcoming catalysts include:
- 2023 - Progress towards the OZ Minerals (now owned by BHP Group) option to buy Kalkaroo. Mutooroo exploration results.
Investors can 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] ( GMRSF ) (Formerly GME Resources)
Alliance Nickel own the NiWest Nickel-Cobalt Project located adjacent to Glencore's 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 August 28, Alliance Nickel Limited announced : "Financial report 2023..."
On September 19, Alliance Nickel Limited announced : "Letter of Support received from Export Finance Australia for the NiWest Nickel-Cobalt Project." Highlights include:
- "Export Finance Australia [EFA] provides a conditional and non-binding Letter of Support towards providing financing for the NiWest Nickel-Cobalt Project.
- Subject to EFA Board Approval, the Letter of Support may be converted into a binding agreement following due diligence, sufficient and acceptable lender support and other customary financing terms.
- Discussions advancing with a second Export Credit Agency (ECA) for support in relation to major capital and supply contracts.
- Debt funding process well underway led by Alliance's adviser, Blackbird Commodity Partners."
Investors can read a company investor presentation here .
Global Energy Metals Corp. [TSXV:GEMC][GR:5GE1] ( GBLEF )
On August 30, Global Energy Metals Corp. announced : "Global Energy Metals announces High-Tech Metals summer sampling program returns encouraging nickel, copper and cobalt assays at the Werner Lake Cobalt Project." Highlights include:
- "...Sample F0015125 - 6.22% Cu and 0.5% Co;
- Sample F0015010 - 3.48% Cu and >1% Ni;
- Sample F0014501 - >1% Co and 0.2% Cu; and,
- Sample F0015073 - >1% Ni and 0.8% Cu.
- The discovery of the nickel sulphide potential will now be prioritized and targeted for the upcoming HTM drilling program scheduled to begin towards the end of September.
- The HTM field team collected 209 rock samples over the course of June and July, and coupled with results from the spring ground magnetic survey, has greatly assisted in delineating the Ni-Cu-Co drill targets.
- These results support the systematic exploration approach that High-Tech is taking in unlocking value at Werner Lake and has encouraged the Company to explore further Nickel sulphide potential in the area...
- HTM is looking forward to building upon its current Mineral Resources Estimate (MRE) at Werner Lake which currently totals 720,000 lbs @ 0.51% Co & 0.24% Cu. 3
- HTM is actively evaluating numerous new project possibilities near Werner Lake..."
For further details see:
Cobalt Miners News For The Month Of September 2023