Cobalt Miners News For The Month Of August 2018

Summary

Cobalt spot prices stabilizing after recent falls.

Cobalt market news - Japan seeks stable cobalt supply.

Cobalt miner news - BHP seeking to add cobalt sulphate from Nickel West operation. China Molybdenum net profit set to surge between 271.21% and 295.16%.

Welcome to the August 2018 cobalt miner news. For some background on the cobalt miners, please check out my earlier articles:

The past month saw cobalt prices stabilize after recent falls, and LME inventory levels also stabilize.

Cobalt price news

As of August 21, the cobalt spot price was US$29.26, reduced from US$31.75/lb last month. The LME cobalt price is US$64,000/tonne. The London Metals Exchange inventory remains low and steady for the past month (see graph below).

Cobalt spot prices - 1-year chart - USD 29.26/lb

1 Year Cobalt Prices - Cobalt Price Chart

Source: InfoMine.com

LME cobalt 1 year inventory

1 Year Cobalt LME Warehouse Levels - Cobalt Levels Chart

Source: Infomine.com

On August 16 Metals Bulletin reported: "Increased cobalt demand, low-grade premium hint at imminent price turnaround. Large volume inquiries for spot cobalt units returned in the first half of the week, leaving market participants to suggest prices are close to bottoming out after 15 consecutive weeks of declines."

On August 16 Mining Weekly reported: "Cobalt prices stabilizing – ERG. Eurasian Resources Group (ERG) CEO Benedikt Sobotka…“What we are seeing now is a short-term correction, which is probably more pronounced than the underlying market conditions would lead us to expect. Cobalt demand is healthy and ERG believes that, in 2019, global consumption will reach 120 000 t, accelerating further to a forecasted 210 000 t by 2025....Along with a small number of large projects, he believes ERG’s Metalkol Roan Tailings Reclamation project, in the Democratic Republic of Congo, will help to cover near-term demand; but there are few additional large-scale projects on the horizon to fill the deficit which develops going into the 2020s."

Cobalt demand and supply

On August 6 Bloomberg reported: "World's top miner charges into cobalt. BHP seeking to add cobalt sulphate from Nickel West operation. BHP Billiton Ltd., the world’s biggest miner, is advancing plans to add production of a key cobalt material used in rechargeable batteries to boost its exposure to the electric vehicle revolution. The Nickel West operation in Western Australia, aiming to sell 90 percent of its output to the battery sector by the end of next year."

Bloomberg - Rising demand for cobalt risks supply shock in early 2020s

Source: Bloomberg.com

Investors can read my article on Trend Investing - "My Cobalt Demand Versus Supply Model - May 2018 "

Cobalt market news

A Morgan Stanley September 2017 report I came across this month - "Auto industry braces for electric shock" is also a good read. One quote is: "By 2050, there may be one billion electric vehicles on the road worldwide, bringing opportunities — and challenges — for automakers and the supply chain. Cathode manufacturers are gearing up for substantial increases in production but could face associated pressure on their pricing levels. Demand for battery components like copper, cobalt and lithium could increase sharply, as could prices."

On July 31 Reuters reported: "Battery chemical surplus sparks plunge in cobalt price. A surplus of cobalt chemicals used to make the rechargeable batteries that power electric vehicles has seen Chinese refiners switch to producing metal, sending prices down 30 percent in recent months."

On August 1 Small Caps reported: "Japan unveils plan for automotive industry to "go green" by 2050, seeks stable cobalt supply. Japan is the latest country to join the race to zero emissions by committing to domestic production and sales of only electrified vehicles by the year 2050. Japan’s economy ministry panel also weighed in on the cobalt supply-demand scenario, delivering a new industry initiative requiring the country’s automotive houses to work together to secure long-term and stable supplies of the much-needed resource. The automotive consortium has been set up to procure cobalt via long-term contracts with existing global suppliers and by investing in new development projects with the Japanese government’s financial backing."

On August 14 Mining.com reported: "Battery upsurge spurs quest to resurrect World War II cobalt mines. Now the global hunt for cobalt, a key commodity in the electric-vehicle revolution, is rousing the sleepy community on the edge of Chile’s northern desert. Trucks are bouncing down the meandering dirt road from Freirina, carrying modern mining equipment to La Cobaltera. On a recent morning, workers operated a drilling machine that rattled the ground as they dug as deep as 90 meters (295 feet) for mineral samples. When a drill core was pulled out, the workers cheered the appearance of a column of compact rock peppered with bright green for copper, and black for cobalt."

Cobalt company news

China Molybdenum [HKSE:3993] [SHE:603993] (OTC:CMCLF)

On July 31 4-traders reported: "China Molybdenum: CMOC sees huge surge of interim net. China Molybdenum (CMOC) (03993) said its net profit attributable to equity holders of the company for the six months ended 30 June 2018 will increase by an amount between RMB2.265 billion and RMB2.465 billion, representing an increase between 271.21% and 295.16% as compared with the same period of last year."

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

On July 31 Glencore announced: "2018 half-year production report. Own sourced copper production of 696,200 tonnes was 53,300 tonnes (8%) higher than H1 2017 and cobalt production of 16,700 tonnes was 4,000 tonnes (31%) higher, in each case reflecting the restart/ramp-up of Katanga. Own source copper sales during the period were some 32,000 tonnes lower due to timing of shipments."

Katanga Mining [TSX:KAT] (OTCPK:KATFF)

On August 8 Katanga Mining announced: "2018 Second Quarter financial results. Cobalt revenue increased to $141.1 million in Q2 2018 from $nil million in Q1 2018. Cobalt revenue increased to $141.1 million in H1 2018 from $nil million in H1 2017." Included was cobalt production of 2,176 tonnes."

You also can read my original article from January 1, 2017, "Katanga Mining is a potential turnaround story." Followers of mine who bought back then with me at CAD 0.13 and sold when I recommended Trend Investing subscribers to reduce at CAD 2.89 made a nice 2,123% gain in just over a year.

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

On July 31 Sherritt International announced: "Sherritt reports second quarter 2018 results." Highlights include:

  • "Adjusted EBITDA was $49.5 million, up 70% from $29.2 million in Q2 2017. Growth was largely due to higher realized nickel and cobalt prices, offsetting the impact of lower oil production due to the expiration of a production sharing contract at Varadero West.
  • Sherritt’s share of finished nickel production at the Moa Joint Venture (“Moa JV”) was 3,749 tonnes while finished cobalt was 388 tonnes."

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

On July 31 Umicore announced: "Half year results 2018. Revenues and recurring EBIT were up substantially compared to the same period last year driven predominantly by growing demand for Umicore’s cathode materials for rechargeable batteries used in automotive applications. Revenues of € 1.7 billion (+16% or +23% excluding discontinued operations). Recurring EBITDA of € 364 million (+23% or +26% excluding discontinued operations). Recurring EBIT of € 261 million (+28% or +34% excluding discontinued operations)."

On August 2 Reuters reported: "Belgium's Umicore plans to ramp up EV battery recycling capacity: CEO. The International Energy Agency expects numbers of electric vehicles on roads worldwide to be around 40 times higher in 2030 than in 2017, leading to a sharp rise in spent batteries becoming available for recycling. “We are preparing to make investment choices and decisions in the first part of the next decade because we will have to be ready with larger industrial scale recycling facilities than we have today sometime around the mid 2020s,” said Marc Grynberg during a media briefing. In June Berenberg analysts said they expected Umicore to invest 280 million euros in a recycling facility around 2020/21, which would potentially give it around a one-third market share in EV battery recycling by 2025."

On August 16 4-traders reported: "Umicore: Patent issued for lithium cobalt oxide based compounds with a cubic secondary phase (USPTO 10,044,035)."

Sumitomo Metal Mining Co. (TYO:5713) (OTCPK:SMMYY)

No significant news for the month.

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

On July 31 MMC Norilsk Nickel announced: "Production results for 1H 2018. Norilsk Nickel Group announces consolidated production results for 2nd quarter and 1st half 2018." No cobalt details were given.

Investors can also read my article: "Time To Buy Norilsk Nickel Before The Nickel Boom Perhaps Starts In 2018."

Freeport-McMoRan Inc. (NYSE:FCX)

No cobalt news for the month.

Highlands Pacific [ASX:HIG] (OTC:HLPCF)

On July 30 Highlands Pacific announced: "Quarterly Activities Report for the period ended 30 June 2018." Highlights include:

Ramu Nickel Cobalt Mine (Highlands 8.56% with announced plan to move to 11.3%)

  • "Production of 9,160 tonnes of nickel and 870 tonnes of cobalt in the June quarter.
  • Cash operating margins for the June quarter averaged approximately US$11,000/t nickel, after cobalt credits.
  • After trading at close to record levels for most of the quarter, Nickel and Cobalt prices eased through June. The nickel price has consolidated at US$13,500/t, and cobalt has retraced to approximately US$70,000/t from a high of circa US$92,000/tin March 2018."

Corporate

  • "Nickel and cobalt streaming transaction with Cobalt27 announced, which will enable Highlands to repay Ramu project debt, increase interest in Ramu to 11.3% and bring forward cashflows. Closing of the transaction being progressed.
  • Private placement of 142.5million shares to Cobalt27 at A10.5c per share, raising A$15 million.
  • Cobalt27 Executive Chairman Anthony Milewski joins Highlands Board of Directors."

Of interest, 4-traders shows an analyst price target of AUD 0.33, representing ~175% upside.

Possible mid-term producers (by ~2020)

eCobalt Solutions [TSX:ECS] (OTCQX:ECSIF)

On August 16 eCobalt Solutions announced: "Construction continues to advance at eCobalt's Idaho Cobalt Project. eCobalt Solutions Inc. reports that construction continues to advance on time and on budget at its Idaho Cobalt Project (the “ICP”), located near the town of Salmon, in the heart of the historic Idaho Cobalt Belt. The ICP remains the sole, near-term environmentally permitted primary cobalt deposit in the United States. “We remain on target for commercial production to begin in 2020. In addition, discussions continue to progress with strong interest from multiple potential off-take partners and project financiers in numerous jurisdictions."

Upcoming catalysts include:

  • 2018 - Project financing and off-take agreements

Fortune Minerals [TSX:FT] (OTCQX:FTMDF)

No news for the month.

Investors can read the latest company presentation here.

Upcoming catalysts include:

  • H2 2018 - Updated Feasibility Study capital and operating costs
  • 2018 - Possible off-take or equity partners; project financing

RNC Minerals [TSX:RNX] (OTCQX:RNKLF)(formerly Royal Nickel Corporation)

On August 15 RNC Minerals announced: "RNC announces Q2 2018 results. Mark Selby, President and CEO, commented, "RNC is focused on maximizing the value of the Dumont Nickel-Cobalt Project ("Dumont"). Dumont remains one of the world's premier battery metals projects containing the world's largest undeveloped reserves of nickel and second largest undeveloped reserves of cobalt. As one of the only large-scale fully permitted, shovel ready nickel-cobalt projects globally, Dumont is ideally positioned to deliver the nickel and cobalt required to meet the massive demand growth expected from the electric vehicle ("EV") market in the coming decade." During the balance of the year, RNC will aggressively advance Dumont on multiple fronts towards a construction decision in 2019.

Mr. Selby continued, "The Beta Hunt Mine, which is now considered non-core to RNC, had a strong second quarter with a 24% improvement in mined grade compared to the first quarter. Mined production was lower than in the first quarter due to a combination of focused mining on high-grade specimen gold in certain areas of the mine and delays in securing financing for the mine in May and June (which led to production constraints). We continue to make progress in the final phase of the sale process for Beta Hunt, which we expect to announce by the end of the month."

Investors can view the company presentations here, or my CEO Mark Selby interview on Trend Investing here.

Clean TeQ [ASX:CLQ] [TSX:CLQ] (OTCQX:CTEQF)

On August 7 Clean TeQ announced: "Sunrise Nickel Cobalt Project, New South Wales, Australia NI 43-101 Technical Report." Warning this is a 422 page report.

Clean TeQ has 132kt contained cobalt at their Sunrise project.

Investors can also read my article, "Top 6 Cobalt Junior Developer Miners To Boom By 2021/2022", and the latest company presentation here.

Upcoming catalysts include:

2018 - Further off-take agreements and project funding.

Australian Mines [ASX:AUZ] (OTCQB:AMSLF)

On July 30 Australian Mines announced: "Quarterly activities report period ended 30 June 2018." Highlights include:

"Sconi Cobalt-Nickel-Scandium Project:

  • Bankable Feasibility Study progressing through final optimisation stages.
  • Optimisation of demonstration plant’s flow chart has reduced full circuit running times in addition to improved cobalt, nickel and scandium recovery. This results in the same sized processing plant being able to produce 23% more cobalt and nickel sulphate product per year without any corresponding increase in the processing plant’s capital expenditure.
  • Project finance negotiations ongoing as international banking and financial institutions position to fund Sconi Project.
  • 50,000 metre Mineral Resource expansion drilling program commenced 1, targeting additional tonnage and high-grade cobalt and nickel zones outside the existing Mineral Resource."

Investors can read my recent article here, my CEO interview here, or view the latest company presentation here.

Upcoming catalysts include:

Q3 2018 - BFS

Ardea Resources [ASX:ARL] (OTC:ARRRF)

No news for the month.

In total, Ardea has 405kt of contained cobalt and 5.46mt of contained nickel at their KNP project near Kalgoorlie in Western Australia.

Investors can view their latest company presentation here, and my interview with former Managing Director Dr. Matt Painter on Trend Investing here.

Upcoming catalysts include:

  • August 2018 - Goongarrie Resource & Reserve Upgrade.
  • Mid 2019 - DFS results - KNP cobalt project.
  • 2021 - Possible production start.

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

On July 30 Cobalt Blue announced: "Quarterly activities and cashflow reports. Thackaringa Project optimisation studies underway. Bankable Feasibility Study commenced."

In total Cobalt Blue currently has 61kt of contained cobalt at their Thackaringa Cobalt Project in NSW, Australia.

Trend Investing subscribers would have been able to buy Cobalt Blue when I wrote about them back in November 2017 at AUD 0.23, making a nice ~ 2.4 fold gain in nine months. My interview with CEO Joe Kaderavek is on Trend Investing here, with an updated interview discussing the LG deal here.

Upcoming catalysts include:

  • H2 2018 - Possible further LG agreements (off-take, funding).
  • H2 2018 -2019 - Optimisation improvements on the PFS, drill results.
  • End Q1 2019 - Resource update.
  • June 30, 2019 - DFS to be released. Reach 85% farm in. Project approvals completed.

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

Aeon Metals owns 100% their Walford Creek copper-cobalt project in Queensland Australia. The 2012 JORC stated Indicated and Inferred Resources of 73Mt at 1.43% Cu equivalent containing: 296,000t of copper, 60,000t of cobalt, 623,000t of zinc, 626,000t of lead, 55moz of silver. Recent previous announcements have confirmed mineralization strikes at 4.6km and 7.4km along strike from the defined existing resource.

On July 31 Aeon Metals announced: "Quarterly Report for the three months ending 30 June 2018. Aeon Metals Ltd commenced a 30,000m drill program at the Company’s 100% owned Walford Creek Project in April and that program remained the focus of activity during the quarter. The current drilling program is now expected to finish late September and the feasibility of extending the exploration portion of the program into October while the dry season persists is being considered."

On August 16 Aeon Metals announced: "Vardy resource drill assays." Drill results can be found starting on page 9.

For more information you can read my article "Aeon Metals May Have A World Class Copper And Cobalt Sulphide Resource In Northern Australia."

Investors can view a 4-traders analyst consensus PT of AUD 0.54, and the latest company presentation here.

Upcoming catalysts include:

  • 2018 - Further drilling and drill results, further upgrades to the resource.

GME Resources [ASX:GME][GR:GM9] (OTC:GMRSF)

GME Resources 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 a total resource (0.8% Ni cut-off): 81Mt at 1.03% Ni and 0.06% Co (~75% in M&I categories) for an estimated 830,000 tonnes of nickel metal and 52,000 tonnes of cobalt.

On August 2 GME reported: "NiWest Pre-Feasibility Study delivers outstanding results." The post-tax NPV8% was A$791m, IRR of 16.2%. CapEx was A$966M, payback period (pre-tax) of 4.4 years.

The average life of mine cash unit operating cost (post royalties and cobalt credits) is US$3.24/lb contained nickel (US$3.00/lb for the first 15 years). Initial 27-year operating life, average annual production of 19.2kt nickel and 1.4kt cobalt over the first 15 years.

Investors can read the latest activities report here, or an excellent investor presentation here.

Havilah Resources [ASX:HAV] [GR:FWL]

Havilah 100% own the Mutooroo copper-cobalt project about 60km west of Broken Hill in South Australia, with an average cobalt grade of 0.13% and 17,100 tonnes of contained cobalt in sulphide ore. They also have the nearby Kalkaroo copper-cobalt project. Havilah also have a 15% royalty on the Portia gold mine which assists their cash flow, and their soon to be developed North Portia gold project. They also have a massive iron ore project called Grants iron (within the Mutorroo area), and several other very promising exploration projects including the massive Jupiter Iron Oxide Copper Gold Target.

No news for the month.

Note: Investors can learn more by reading my recent articles - "The Broken Hill District May Grow To Become Australia's Premiere Cobalt Mining Center" and Havilah Resources Has Huge Potential."

Investors can view my CEO interview here, and the company presentation here.

The very promising Broken Hill cobalt district (Havilah Resource's Mutooroo is not shown but would be at the bottom left if shown).

Source

Note: Other neighbors to Cobalt Blue include Alloy Resources [ASX:AYR], Castillo Copper [ASX:CCZ], Broken Hill Prospecting [ASX:BPL], and Archer Exploration [ASX:AXE].

Castillo Copper [ASX:CCZ]

In an article titled "Castillo identifies six Himalaya-style cobalt targets" by Finfeed they stated: "CCZ’s project is situated 17 kilometres west of the historic Broken Hill mining centre, within a prolific region of NSW steadily emerging as a hub for battery metals. Broken Hill in particular is thought to contain one of the largest undeveloped cobalt reserves in the world; however previous exploration in the area has predominantly focused on zinc, lead and gold."

On August 20 Castillo Copper announced: "Strategy for optimising the Queensland projects. Leverage experienced third parties for the Queensland projects; and utilise in-house expertise and resources to re-open the Cangai Copper Mine, while simultaneously progressing plans for an inaugural drilling campaign at the Broken Hill project."

On August 20 Castillo Copper announced: "Shallow, highly mineralised massive sulphides intersected at Cangai. Strong start to the second drilling campaign as massive sulphides intersected with visible copper and zinc minerals. The massive sulphide intersections have extensive visible chalcopyrite, sphalerite, pyrite and pyrrhotite present which is consistent with historic mine reports. Castillo Copper’s Chairman Peter Meagher commented: “This is an excellent start to our second drilling campaign. Hitting highly mineralised semi-massive and massive sulphides in multiple holes from 41m near the start of the drilling program is truly a game-changer, especially with 34 more drill-holes to complete. This early result firmly places our core strategic objective to re-open Cangai Copper Mine on track.”

Investors can view my CEO interview here.

Castillo Copper's Himalaya formations likely to contain cobalt

CCZ-himalaya-foundation.jpg

Source

Alloy Resources [ASX:AYR]

On July 30 Alloy Resources announced: "quarterly activities report." Highlights Include:

"Ophara Cobalt-Gold Project (100%)

  • Infill and expansion soil sampling program completed covering 75 square kilometres around the Great Goulburn Prospect.
  • At least six strong soil anomalies similar to Great Goulburn cobalt-gold prospect defined.
  • New copper-gold-cobalt style of mineralisation defined
  • Rock chip sampling confirms four initial drill targets and 2,500 metre air-core program commenced."

Cassini Resources [ASX:CZI] [GR:ICR] (OTC:CSSQF)

Cassini's flagship is the West Musgrave Project hosting over 1.0 million tonnes of contained nickel and 2.0 million tonnes of contained copper in resource. The company has a buy in JV with OZ Minerals [ASX:OZL] (OTCPK:OZMLF) for West Musgrave. The company also has several other promising projects.

On July 30 Cassini Resources announced: "Activities report for the quarter ended 30 June 2018." Highlights include:

West Musgrave Project

  • "Pre-Feasibility Study [PFS] progressing well.
  • Current activities include resource in fill and extensional drilling, advanced metallurgy and baseline environmental studies.
  • Significant progress on renewable power investigation.
  • Early exploration drill success at the Yappsu Prospect."

West Arunta Project (100% CZI)

  • "Airborne EM survey results confirm prospectivity of Mimas and Janus targets.
  • Heritage and environmental clearances for drilling received.
  • Drilling of Janus and Mimas Prospects re-scheduled for August."

Yarrawindah Brook Project (CZI option to earn 80%)

  • "Option to acquire early stage Ni-Cu-Co sulphide project.
  • Airborne EM survey results highlight potential for discovery."

Investors can read the latest company presentation here.

Nzuri Copper [ASX:NZC] (OTCPK:NZRIF)

Nzuri 85% own the Kalongwe copper-cobalt project in the Kolwezi region of the Democratic Republic of Congo [DRC]. The Kalongwe resource is a near surface oxide resource of 302,000t contained copper at an average grade of 2.72% copper, that also includes 42,000t contained Cobalt (at an average 0.62% grade). In late 2017, China’s Huayou Cobalt invested US$10m in Nzuri Copper buying a 14.8% stake.

On July 31 Nzuri Copper Ltd. announced: "June 2018 quarterly activities reports." Highlights include:

Kalongwe Copper-Cobalt Project, DRC

  • "Updated Feasibility Study delivered significantly enhanced financial metrics, including a 59% increase in post-tax NPV and a 38% increase in post-tax IRR, with unchanged capital requirements and project scope.
  • Increase in Kalongwe JORC Ore Reserve to 7.99Mt at 2.94% Cu and 0.34% Co for 234,868t of Cu and 27,102t of Co (adding 11% Cu and 8% Co).
  • Preliminary Economic Analysis of SX-EW processing also completed, highlighting further potential increases to the returns and mine life from higher copper-cobalt output and revenue."

Exploration–Kalongwe and Fold & Thrust Belt JV

  • "New high-grade cobalt results confirm near-surface resource potential at Kalongwe-SW.
  • Drilling undertaken at Monwezi 2, Mamba targets and Kalongwe SW."

Corporate

  • "$6M raised in successful placement and convertible loan, with an additional $0.6M raised in July 2018 through the Share Purchase Plan (“SPP”).
  • Strong cash position of $9.446M at 30 June (with an additional $0.6M received in July 2018 from the SPP)."

Investors can read the latest company presentation here.

Celsius Resources [ASX:CLA] [GR:FX8]

Celsius owns 100% of Opuwo Cobalt Pty Ltd, which in turn holds the right to earn up to 76% of the Opuwo Cobalt (sulphide) Project in Namibia. Mineralisation already has been intersected over a 15 km zone in the initial Celsius drilling program. Celsius has ~126,000 tonnes of contained cobalt at an average grade of 0.11%.

On July 31 Celsius Resources announced: "Quarterly activities reports June 2018. The Mineral Resource estimate comprises 112.4 million tonnes at a grade of 0.11% cobalt, 0.41% copper, and 0.43% zinc, at a cutoff grade of 0.06% (or 600 ppm) cobalt. The Mineral Resource estimate represents contained cobalt of 126,100 tonnes and consists of; 72.0 million tonnes at a grade of 0.11% cobalt, 0.42% copper and 0.41% zinc in the Indicated category, and a further; 40.5 million tonnes at a grade of 0.12% cobalt, 0.41% copper and 0.46% zinc in the Inferred category."

On August 10 Celsius announced: "Opuwo Cobalt Project exploration update." Highlights include:

  • "Highlights from latest resource definition drilling are: 9.09m @ 0.12% Co, 0.51% Cu and 0.66% Zn, including 2.29 m @ 0.15% Co, 1.04% Cu and 0.84% Zn. 9.03 m @ 0.12% Co, 0.71% Cu and 0.60% Zn; 6.90m @ 0.13% Co, 0.65% Cu and 0.39% Zn. 6.36 m @ 0.12% Co, 0.59% Cu and 0.67% Zn. 6.29m @ 0.12% Co, 0.44% Cu and 0.59% Zn. 5.27 m @ 0.14% Co, 0.48% Cu and 0.67% Zn, including 2.58 @ 0.21% Co, 0.69% Cu and 0.76% Zn."
  • Data to be included in Mineral Resource update in Q4, 2018.
  • SkyTEM electromagnetic [EM] survey is 63.5% complete, with completion expected in the next 2-3 weeks."

Investors can view the company presentations here.

Cruz Cobalt [CUZ] (OTCPK:BKTPF)

On August 9 Cruz Cobalt announced: "Cruz Cobalt work programs now underway in Ontario Cobalt Camp. Cruz Cobalt Corp. is pleased to provide an update with respect to its 2018 Ontario Cobalt Camp exploration programs. The Company and its geological consultants APEX Geoscience Ltd. (APEX) confirm that exploration crews have commenced surface rock, soil geochemical and ground magnetic geophysical surveys at its 4,980 acre Hector Cobalt Property located 5 km southeast of the town of Cobalt, Ontario. To date crews have collected a total of 231 humus soil geochemical samples and approximately 22 line-km of detailed ground magnetic survey data over an approximate 2.5 square-km high-priority area containing numerous historic cobalt-silver-copper (Co-Ag-Cu) occurrences."

On August 15 Cruz Cobalt announced: "Cruz Cobalt completes first phase of exploration in Ontario Cobalt Camp."

First Cobalt [TSXV:FCC] (OTCQB:FTSSF)

On 16 August 4-traders reported: "First Cobalt Corp. (TSX.V: FCC) (OTCQX: OTCQX:FTSSF) optimistic about Iron Creek expansion as EV market continues exponential growth. Company accelerates drilling activities at Idaho site with the installation of two new drill rigs. Drilling from underground successfully extending mineralization of Waite Zone."

Investors can view the company presentations here.

Bankers Cobalt [TSXV:BANC] [GR:BC2] (NDENF)

On July 26 Bankers Cobalt announced: "Bankers diversifies with copper-cobalt exploration project in Namibia. Bankers Cobalt Corp. is pleased to announce it has entered an option with a private Namibian partner to acquire a 70% interest in a prospective base metals, precious metals and industrial metals license located in the country of Namibia. Stephen Barley, Chairman and CEO stated: "Bankers primary focus will remain on the exploration of our large property portfolio in the DRC. Based on key relationships, Bankers was presented with the opportunity to participate in a highly prospective substantial land package in Namibia and the potential was so compelling the Corporation determined to add this to the portfolio. This allows Bankers to provide diversification from the DRC with nominal cash consideration, no additional share or equity consideration and with no distraction from our primary DRC cobalt and copper focus."

Investors can view the company presentations here, or my CEO Stephen Barley interview on Trend Investing here.

Cobalt27 Capital Corp. [TSXV:KBLT] [GR:27O][LN:OUPZ] (OTC:CBLLF)

Cobalt27 is a listed investment company that offers unique exposure to a portfolio of cobalt assets - Cobalt metal, cobalt royalties and direct cobalt properties. Cobalt27 owns 2,982.9 tonnes of cobalt.

On August 6 4-traders reported: "Giga Metals Corporation (TSX.V: GIGA) (FSE: BRR2) announced today that the Company has closed the sale of a 2% Net Smelter Return ('NSR') royalty on all future nickel and cobalt production from the Turnagain Nickel-Cobalt Project to Cobalt 27 Capital Corp. Giga Metals is in receipt of U.S.$1 million in cash and 1,125,000 shares of the capital stock of Cobalt 27."

Investors can read my article "Cobalt 27 Has A Rapidly Growing Portfolio Of 11 (Now 12) Cobalt And Nickel Streaming And Royalty Deals."

Other juniors and miners with cobalt

I am happy to hear any news updates from commentators. Tickers of cobalt juniors I will be following include:

African Battery Metals [AIM:ABM], Artemis Resources Ltd [ASX:ARV] (OTCPK:ARTTF), Auroch [ASX:AOU] [GR:T59], Azure Minerals [ASX:AZS] (OTC:AZRMF), Barra Resources Ltd. (OTC:BRCSF) [ASX:BAR], Blackstone Minerals [ASX:BSX], BHP (NYSE:BHP), Berkut Minerals [ASX:BMT], Bluebird Battery Metals Inc. [TSXV:BATT] (OTCPK:BBBMF), Brixton Metals Corporation [TSXV:BBB](OTC:BXTMD), Canadian International Minerals [TSXV:CIN], Canada Cobalt Works Inc [TSXV:CCW], Centaurus Metals [ASX:CTM], Cobalt Power Group [TSX:CPO], Cohiba Minerals [ASX:CHK], Conico Ltd [ASX:CNJ], Corazon Mining Ltd [ASX:CZN], Cudeco Ltd [ASX:CDU] [GR:AMR], Dragon Energy [ASX:DLE], European Cobalt Ltd. [ASX:EUC], First Quantum Minerals (OTCPK:FQVLF), Galileo [ASX:GAL], Global Energy Metals [TSXV:GEMC] (OTC:GBLEF), GME Resources [ASX:GME] (OTC:GMRSF), Global Energy Metals [TSXV:GEMC] [GR:5GE1] (GBLEF), Hinterland Metals Inc. (OTC:HNLMF), Independence Group [ASX:IGO] (OTC:IIDDY), King's Bay Res (OTC:KBGCF) [TSXV:KBG], Latin American Resources, LiCo Energy Metals [TSXV:LIC] (OTCQB:WCTXF), M2 Cobalt Corp. (TSXV: MC) (OTCQB: OTCQB:MCCBF), MetalsTech [ASE:MTC], Metals X (ASX:MLX) (OTCPK:MLXEF), Meteoric Resources [ASX:MEI], Mincor Resources (OTCPK:MCRZF) [ASX:MCR], Northern Cobalt [ASX:N27], Pacific Rim Cobalt [BOLT:CSE], PolyMet Mining [TSXV:POM] (NYSEMKT:PLM), OreCorp [ASX:ORR], Power Americas Minerals [TSXV:PAM], Panoramic Resources (OTCPK:PANRF) [ASX:PAN], Pioneer Resources Limited [ASX:PIO], Platina Resources (OTCPK:PTNUF) [ASX:PGM], Quantum Cobalt Corp [CSE:QBOT] GR:23BA] (OTCPK:BRVVF), Regal Resources (OTC:RGARF), Hylea Metals (ASX:HCO), Sienna Resources [TSXV:SIE], (OTCPK:SNNAF), US Cobalt [TSXV:USCO] (OTCQB:USCFF), and Victory Mines [ASX:VIC].

Lithium and electric metals fund (ISIN DE000LS9L822) - Access via the Stuttgart stock exchange or wikifolio.com

The portfolio gives investors broad exposure across the EV metals miners covering lithium, cobalt, nickel, rare earths, and graphite. I help manage the fund. The certificate is endless (open fund) and listed on the Stuttgart Stock Exchange, so it can be bought via a broker that carries the ISIN or via Wikifolio. The ticker is DE000LS9L822 listed on the Stuttgart stock exchange and accessible from any German exchange.

Investors can view the portfolio holdings and learn more by accessing here.

Disclosure: I may receive 50% of the profit from the above fund.

Conclusion

Cobalt spot prices stabilized in August. EV and cobalt fundamentals continue to strengthen despite the recent cobalt price pullback.

My highlights for the month were:

  • Cobalt spot prices stabilizing after recent falls.
  • The International Energy Agency expects numbers of electric vehicles on roads worldwide to be around 40 times higher in 2030 than in 2017, leading to a sharp rise in spent batteries becoming available for recycling.
  • Japan seeks stable cobalt supply.
  • BHP seeking to add cobalt sulphate from Nickel West operation.
  • China Molybdenum net profit set to surge between 271.21% and 295.16%.
  • GME Resources - NiWest Pre-Feasibility Study results - Post-tax NPV8% of A$791m, IRR of 16.2%. CapEx of A$966M, payback period (pre-tax) of 4.4 years.
  • Nzuri Copper - Updated FS results in a 59% increase in post-tax NPV.
  • Celsius Resources - Strong drill results at their Opuwo Cobalt (sulphide) Project in Namibia.

August was a month of stabilization for the cobalt miners after some sharp selling since May when the cobalt price peaked. Given the ever improving EV fundamentals I expect the 2018 EV metals miner's downturn should soon be over, and we can soon expect a nice recovery.

As usual, all comments are welcome.

Disclosure: I am/we are long GLENCORE (LSX:GLEN), KATANGA MINING [TSX:KAT], NORSILK NICKEL (LME:MNOD), HIGHLANDS PACIFIC [ASX:HIG], AUSTRALIA MINES [ASX:AUZ], FORTUNE MINERALS [TSX:FT], RNC MINERALS [TSX:RNX] , ARDEA RESOURCES [ASX:ARL], COBALT BLUE [ASX:COB], AEON METALS [ASX:AML], GME RESOURCES [ASX:GME], CASSINI RESOURCES (ASX:CZI) , HAVILLAH RESOURCES [ASX:HAV], CONICO LTD [ASX:CNJ], CRUZ COBALT CORP [TSXV:CUZ], BANKERS COBALT [TSXV:BANC], POSEIDON NICKEL [ASX:POS], ALLOY RESOURCES (ASX:AYR), CASTILLO COPPER (ASX:CCZ), CELSIUS RESOURCES [ASX:CLA]. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: The information in this article is general in nature and should not be relied upon as personal financial advice.

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