Cobalt Miners News For The Month Of April 2024 (2024)

Welcome to the April 2024 cobalt miners news.

The past month saw cobalt prices slightly lower.

Cobalt price news

As of April 24, the cobalt spot price was at US$12.46/lb, down slightly from US$12.72/lb last month. The LME cobalt price is US$27,220/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 here at Benchmark Mineral Intelligence or Fast Markets MB.

Cobalt spot prices - 5-year chart - USD 12.46 (source)

Cobalt demand v supply forecasts

You can view the latest Trend Investing cobalt demand v supply article here.

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)

Morgan Stanley forecasts cobalt surpluses to grow this decade (as of Nov. 2023) (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 April 18 S&P Global reported:

TRADE REVIEW: Cobalt metal market seen oversupplied through Q2 as demand subdued...The cobalt metal market is expected to be oversupplied through the second quarter and beyond in 2024 because of rising Chinese supply and subdued demand, potentially weighing on prices... But cautious optimism surrounds prices of cobalt sulfate...The optimism stems from anticipated higher production of cobalt containing batteries and forecast growth in plug-in electric vehicle, or PEV, sales. Global PEV sales in 2024 are expected to grow 30% from an estimated 13 million units in 2023, according to S&P Global Commodity Insights... Chinese refined cobalt metal output is expected to reach 30,400 mt in 2024, jumping more than fourfold, or 319% from 2021, according to an industry source. S&P Global Commodity Insights analysts expect the global cobalt metal market to remain in a surplus until 2026, and that is likely to put pressure on 2024 spot prices...The market share for nickel, cobalt and manganese in China's battery market was 32% in March at 24.2GWh, according to data from China Automotive Battery Innovation Alliance.

On April 23 PRNewswire reported:

Cobalt Sulphate market size to grow USD 1.9 billion by 2030 at a CAGR of 6.4% | Valuates Reports...The Global Cobalt Sulphate Market was valued at USD 1.0 Billion in 2020, and is projected to reach USD 1.9 Billion by 2030, growing at a CAGR of 6.4% from 2021 to 2030.

Cobalt company news

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

On April 8, Mining Weekly reported:

DRC, CMOC agree to bolstering Congolese participation at cobalt mine... ARSP and CMOC, which owns 80% of TFM, have agreed that CMOC will ensure that it is complying with regulation that subcontractors at the project must be 51% Congolese-owned.

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

On April 3, Mining Technology reported:

Glencore and EVelution sign LOI for cobalt supply in US. Glencore has agreed to supply up to 7,000 tonnes [T] of contained cobalt per year to EVelution's facility...

Zhejiang Huayou Cobalt [SHA:603799]

On April 18 Market Screener reported:

Zhejiang Huayou Cobalt Co., Ltd Reports Earnings Results for the First Quarter Ended March 31, 2024...For the first quarter, the company reported sales were CNY 14,962.65 million compared to CNY 19,110.27 million a year ago. Revenue was CNY 14,962.65 million compared to CNY 19,110.27 million a year ago. Net income was CNY 522.42 million compared to CNY 1,024.1 million a year ago. Basic earnings per share from continuing operations was CNY 0.33 compared to CNY 0.64 a year ago. Diluted earnings per share from continuing operations was CNY 0.33 compared to CNY 0.64 a year ago.

On April 21 Yahoo Finance reported: "Huayou profit slumps 49% in First Quarter on battery metals rout."

Jinchuan Group International Resources [HK:2362]

On March 24, Jinchuan Group International Resources announced: "Annual results announcement for the year ended 31 December 2023..."

On March 24 Market Screener reported:

Jinchuan Group International Resources Co. Ltd reports earnings results for the Full Year ended December 31, 2023...For the full year, the company reported sales was USD 638.86 million compared to USD 881.6 million a year ago. Net loss was USD 11.56 million compared to net income of USD 1.03 million a year ago.

On April 3, Jinchuan Group International Resources announced:

Renewal of mining permit and the proposed transfer of 5% in Ruashi SAS...It is expected that the completion of the transfer of Ruashi SAS' shares equivalent to 5% of the shares in Ruashi SAS by Ruashi Holdings to the DRC State at nil consideration will take place on or before 30 June 2024. Certificate for the renewed Mining Permit will be issued by CAMI after the completion of the Disposal.

Chemaf (subsidiary of Shalina Resources)

No news for the month.

Note: An October 2023 Reuters report quoted: "Chemaf SA ...is up for sale as it deals with a cash crunch."

GEM Co Ltd [SHE:002340]

On April 14, GEM Co Ltd announced:

Joint venture between GEM and GAC Group has been successfully established to capture trillion dollar "Trade-in" opportunity...On April 10, 2024, Wuhan Power Battery Recycling Technology Co., Ltd. a subsidiary of GEM Group, and Yupai Energy Technology, a wholly-owned subsidiary of GAC Group, joined hands to build Guangzhou Youmei Recycling Technology Co. (hereinafter referred to as "Guangzhou Youmei")...where after the completion of the first phase, the plant will have a capacity of 20,000 tons/year for battery recycling and disassembly, and a capacity of 10,000 tons/year for black powder recycling of batteries, which is an important initiative for GEM and GAC to implement strategic cooperation and jointly build a new energy life cycle value chain...

Eurasian Resources Group ("ERG") - private

ERG owns 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 April 2, Eurasian Resources Group announced: "Electra and Eurasian Resources Group sign cobalt supply agreement." Highlights include:

• "Starting from 2026, under the three-year supply agreement, ERG will deliver 3,000 tonnes per annum of IRA-compliant cobalt to Electra's refinery north of Toronto.
• With this agreement, Electra has sufficient cobalt hydroxide feed material to meet all of the refinery's annual capacity.
• Cobalt will come from ERG's Metalkol operation in the Democratic Republic of the Congo, one of the largest cobalt hydroxide facilities globally.
• Further collaboration is under consideration for Electra's plans to build a second cobalt refinery in Bécancour, Quebec."

On April 8, Eurasian Resources Group announced: "Eurasian Resources Group inks MoU to supply cobalt to Japanese market with Mechema and Marubeni." Highlights include:

• "The agreement with Mechema and Marubeni will explore the potential supply of cobalt hydroxide (up to 3ktCo per annum), and the production and marketing of cobalt sulfate.
• The potential cooperation could increase cobalt supply alternatives for Japanese market, which is showing substantial growth in demand due to global surge in EV adoption.
• It also supports ERG's ambition to supply its cobalt to all key regions that will produce main portion of battery materials, one of which will be Japanese supply chain."

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

On April 16, Umicore SA announced: "Umicore launches Nexyclus™, a unique guarantee for fully recycled precious metals, including PGMs..."

On April 19, Umicore SA announced:

Umicore secures € 499 million in sustainability-linked private debt placement...Umicore has successfully completed the issue of a fixed-rate, sustainability-linked US Private Placement Notes for a total amount of € 499 million equivalent¹ which was priced end of March 2024...

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

On March 28, Sumitomo Metal Mining Co. announced:

Sumitomo Metal Mining to build recycling plants for lithium ion batteries. Partnership agreement concluded for construction of a recycling supply chain...Construction of the plants is scheduled to start in FY2024 (from April 2024 to March 2025) and be completed in June 2026...

On April 1, Sumitomo Metal Mining Co. announced: "FY2024 metal production plan."

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

On April 4, MMC Norilsk Nickel announced:

Nornickel announces stock split. Nornickel, the world's largest producer of palladium and high-grade nickel and a major producer of platinum and copper, announces stock split. As a result of this operation one share is converted into 100 shares of the same category. Earlier, an Extraordinary General Meeting of Shareholders (EGM) approved the decision to split the Company's ordinary shares at a ratio of 100...Following the stock split Norilsk Nickel's authorised capital amounts to 15,286,339,700 ordinary shares.

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

No significant news for the month.

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

No news for the month.

Electra Battery Materials [TSXV:ELBM] (ELBM)

On April 2, Electra Battery Materials announced: "Electra and Eurasian Resources Group sign cobalt supply agreement." (see ERG news above)

Other smaller producers

• China Nonferrous Metal Mining Company (CNMC)
• Dongfang International Mining
• Jiangsu Cobalt
• Nanjing Hanrui Cobalt
• Pengxin International Mining Co
• Zijin Mining Group [SSE:601899]
• Wanbau
• GTL
• Jiana Energy
• Sicomes
• Shenzhen GEM

On April 23 Reuters reported:

Zijin cooperating with Congo probe after radiation detected in cobalt load... Congolese authorities suspended the operating licence of Zijin's COMMUS mine over the incident, which is being investigated...Zijin owns a 72% stake in the COMMUS copper and cobalt mine, and the remainder is owned by Congo state miner, Gecamines...COMMUS, based near Congo's southern city of Kolwezi, produced 129,000 tonnes of copper and about 2,200 tons of cobalt last year. Zijin said it had notified Congolese authorities of the higher levels of radiation and initiated the recall of the shipment.

Possible mid-term producers (2025 onwards)

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

On March 27, Jervois Global Limited announced: "Jervois commences U.S. Department of Defense funded drilling at ICO's RAM deposit." Highlights include:

• "Following drift mine development alongside the RAM orebody at Jervois' 100% owned Idaho Cobalt Operations ("ICO"), Jervois has commenced underground extension drilling from the existing mineral resource estimate ("MRE").
• Jervois is interpreting previously announced1 assay results from the Sunshine surface programme, with modelling of the deposit nearing completion.
• Sunshine and RAM exploration programmes are fully funded under the United States ("U.S.") Government's Department of Defense ("DoD") Production Act Title III US$15.0 million grant award ("Agreement Funding").
• Prior to these exploration programmes, ICO's mineral resource and reserve is already 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 aerospace, defense, and energy transition applications.
• U.S. Congressional Select Committee on the Chinese Communist Party has put forward a reserve or price floor to sustain domestic American production."

On April 2, Jervois Global Limited announced: "Jervois completes maiden JORC Resource for Sunshine at ICO, USA." Highlights include:

• "Inaugural JORC Mineral Resource Estimate ("MRE") for the Sunshine deposit at Idaho Cobalt Operations ("ICO") incorporates 1,100 meters ("m") of verification drilling across seven drill holes.
• Sunshine hosts Inferred Resources of 0.52 million metric tonnes @ 0.50% cobalt, 0.68% copper and 0.49 g/t gold; at a 0.25% Co cut-off-grade..."

On April 11, Jervois Global Limited announced: "Jervois completes maiden JORC Resource for Sunshine at ICO, USA (Updated)..."

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

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

On April 16, Sunrise Energy Metals Limited announced:

Quarterly activities report...Cash on hand of $10.8 million as at 31 March 2024...Ongoing work streams to advance the fully integrated Sunrise Project continue...Discussions with potential equity funding and offtake partners for the Sunrise Project continued during the quarter.

Ardea Resources [ASX:ARL] (OTCPK: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 March 27, Ardea Resources announced: "Ardea and Japanese Consortium: Update on progress on KNP - Goongarrie Hub." Highlights include:

• "Ardea continues to make progress with a consortium (Consortium) consisting of Sumitomo Metal Mining [SMM] and Mitsubishi Corporation [MC] in negotiating the terms and conditions of binding Final Agreements.
• Negotiations have been primarily focused on the terms and conditions of a Cooperation Agreement, being the principal Final Agreement.
• Subject to agreement and execution, the Cooperation Agreement will include terms and conditions relating to the Consortium sole funding the Kalgoorlie Nickel Project - Goongarrie Hub Definitive Feasibility Study [DFS], undertaking the DFS and related development activities.
• Ardea and the Consortium have agreed to extend the period for negotiating the Cooperation Agreement to April 2024."

On April 22, Ardea Resources announced: "Ardea Resources Limited (ASX: ARL) - Trading halt..."

On April 23 Ardea Resources announced:

Suspension from Quotation...the Company now requests that the Company's securities be placed into voluntary suspension effective prior to the commencement of trading on Wednesday, 24 April 2024 (immediately after the cessation of the trading halt), pending the release of an announcement in relation to an update on progress on the Ardea and Japanese Consortium KNP - Goongarrie Hub...The Company anticipates that the voluntary suspension will remain in place until the earlier of such time as it makes the Announcement and the commencement of trading on Wednesday, 1 May 2024.

Cobalt Blue Holdings [ASX:COB] (OTCPK:CBBHF)

Cobalt Blue has 87kt of contained cobalt at their 100% owned Broken Hill Cobalt Project [BHCP] in NSW, Australia. There is also a plan for a Cobalt-Nickel Refinery. LG International is an equity strategic partner.

On April 2, Cobalt Blue Holdings announced: "Cobalt-nickel refinery progress." Highlights include:

• "COB is developing the first Cobalt Sulphate Refinery (Refinery Project) in Australia. Recent milestones achieved: Large-scale feedstock samples sourced from third parties have been processed. Potential offtake partners have begun to assess larger-scale sulphate samples produced from these sources. Detailed engineering design has commenced. Permitting on target for submission mid-2024.
• Workstreams are on track for a Q3 2024 decision to proceed to construction.
• COB and Iwatani Australia will jointly market the Refinery Project at the upcoming annual Cobalt Institute Conference (13-14 May 2024).
• COB is targeting both the US Inflation Reduction Act (IRA) and EU Critical Raw Materials Act (CRMA) compliance for its products. We believe that the timing of the Refinery Project is ideal as US/EU market demand will hit an inflection point in the coming years.
• COB published a Cobalt-Nickel Refinery Study presenting a compelling evaluation of a refining business that is expected to generate stable margins throughout the highs and lows of the cobalt price cycle."

On April 18, Cobalt Blue Holdings announced: "Successful A$5 million institutional placement." Highlights include:

• "Firm commitments received to raise A$5.0 million.
• Proceeds to be used on the Refinery development program, Re-Mining projects, BHCP review, corporate costs, and general working capital.
• Led by domestic and offshore institutional investors."

Australian Mines [ASX:AUZ] (OTCPK:AMSLF) - Plan to change name to EcoMetal Resources (ASX:EM1)

No cobalt related news for the month. There was some news regarding their the Jequie1 REE and Niobium project, you can read here.

Upcoming catalysts include:

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

Havilah Resources [ASX:HAV] [GR:FWL] (OTCPK: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, 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 24, Havilah Resources released their 2024 Half-Year Technical Update presentation.

A slide taken from Havilah's 2024 half-year technical update presentation highlighting the Company's strong copper-gold-cobalt resources (source)

Aeon Metals [ASX:AML] (OTC:AEOMF)

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

On April 22 Aeon Metals announced:

BOARD CHANGES and LAND ACCESS UPDATE. Aeon Metals Limited (ASX: AML) announces that Dr Fred Hess will be stepping back as Managing Director and CEO for period of time on unpaid leave but will continue as a Non-Executive Director on the Board effective 1 May 2024. The Company is also pleased to report that ground access for a resumption of exploration is expected in time for the 2024 dry season with the conclusion of a Cultural Heritage and Monitoring Agreement with traditional owners, the Waanyi People.

Alliance Nickel Limited [ASX:AXN] (GMRSF)

Alliance Nickel own the NiWest Nickel-Cobalt Project located adjacent to Glencore's Murrin Murrin Nickel operations in the Northeastern Goldfields of Western Australia. The NiWest Project which has an estimated 830,000 tonnes of nickel metal and 52,000 tonnes of cobalt.

No news for the month.

Global Energy Metals Corp. [TSXV:GEMC][GR:5GE1] (OTCQB:GBLEF)

On April 3, Global Energy Metals Corp. announced:

Global Energy Metals granted uranium royalty on Saskatchewan-Based Projects and shares in Terra Balcanica; Terminates agreement with Fulcrum Metals...

Giga Metals Corp. [TSXV:GIGA][FSE: BRR2] (OTCQX:GIGGF) Turnagain Nickel-Cobalt Project is now held via the JV company Hard Creek Nickel Corporation [TSXV:HNC] (HNCKF) (85% Giga Metals: 15% Mitsubishi Corp.)

On April 22 Giga Metals Corp. announced: "Giga Metals Director Milewski resigns."

TMC the Metals Company (TMC)

On March 25, The Metals Company announced: "TMC announces fourth quarter and full year 2023 results." Highlights include

• "$15.2 million cash used in operations for the quarter ended December 31, 2023.
• Net loss of $33.5 million and net loss per share of $0.11 for the quarter ended December 31, 2023.
• For the full year 2023, a net loss of $73.8 million or $0.26 per share (compared to $171 million and $0.71 per share in 2022).
• Total cash on hand of approximately $6.8 million at December 31, 2023, excluding $9 million received in January 2024 as final payment from the Registered Direct Offering announced in August 2023.
• Total pro forma liquidity of approximately $61 million at December 31, 2023, inclusive of:
  • Cash of $6.8 million.
  • $9 million of additional gross proceeds received in January 2024 from the final payment in the Registered Direct Offering.
  • The undrawn $25 million unsecured credit facility from an affiliate of Allseas Group S.A., the maturity date of which has been extended through August 2025.
  • An additional $20 million unsecured credit facility with a maturity date of September 22, 2025 provided by our largest shareholder, ERAS Capital LLC (the family office of TMC director Andrei Karkar), and our Chairman & CEO, Gerard Barron."

CHILEAN COBALT CORP. (OTCQB:COBA)

Chilean Cobalt Corp. ("C3") is a critical minerals exploration and development company focused on the La Cobaltera Project located in Chile's historic San Juan cobalt district.

No news for the month.

Conclusion

April saw cobalt spot prices slightly lower and LME inventory levels unchanged.

Highlights for the month were:

• S&P Global - Cobalt metal market seen oversupplied through Q2 as demand subdued.
• The Global Cobalt Sulphate Market was valued at USD 1.0 Billion in 2020, and is projected to reach USD 1.9 Billion by 2030, growing at a CAGR of 6.4% from 2021 to 2030.
• Glencore and EVelution sign LOI for 7ktpa of cobalt supply in the US.
• Huayou Cobalt's profit slumps 49% in First Quarter on battery metals rout.
• Jinchuan Group International Resources Co. Ltd FY 2023 results - Net loss was USD 11.56 million compared to net income of USD 1.03 million a year ago.
• Electra and Eurasian Resources Group ("ERG") sign cobalt supply agreement, starting from 2026 ERG will deliver 3,000tpa of IRA-compliant cobalt to Electra's refinery north of Toronto. ERG inks MoU to supply cobalt to Japanese market with Mechema and Marubeni.
• Umicore secures €499 million in sustainability-linked private debt placement.
• Sumitomo Metal Mining to build recycling plants for lithium ion batteries.
• Zijin Mining cooperating with Congo probe after radiation detected in cobalt load.
• Jervois commences U.S. Department of Defense funded drilling at RAM deposit, Idaho Cobalt Operations.
• Ardea Resources is in voluntary suspension awaiting an announcement on the Ardea and Japanese Consortium KNP - Goongarrie Hub.
• Cobalt Blue Cobalt-nickel refinery workstreams are on track for a Q3 2024 decision to proceed to construction.

As usual, all comments are welcome.

Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.

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