Cobalt Miners News For The Month Of November 2018

Summary

Cobalt spot prices were slightly down in November.

Cobalt market news - Uranium levels force Glencore unit Katanga to halt cobalt exports.

Cobalt miners news - Australian Mines delivers their BFS and Cobalt 27 to buy back their stock.

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

The past month saw plenty of action in the cobalt sector. Perhaps the largest event was the Katanga Mining (OTCPK:KATFF) cobalt export ban announcement, which led to a sharp recovery in cobalt prices.

Cobalt price news

As of November 21, the cobalt spot price was US$25.06, reduced from US27.56/lb last month, but up from mid-month lows near US$20/lb. The LME cobalt price is US$54,750/tonne. The London Metals Exchange [LME] inventory remains low and moved sideways again for the past month (see graph below).

Cobalt spot prices - 1-year chart - USD 25.06/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

Cobalt demand and supply

On October 25, Mining.com reported: "Eurasian Resources Group forecasts a strong metals price recovery. The cobalt market is undergoing a seismic shift in demand and supply will struggle to keep pace."

On November 9, GreenTechMedia reported:

"Katanga export halt threatens cobalt supply chain for Lithium-Ion batteries. The price of cobalt, a key material for lithium-ion batteries, could skyrocket after the output from a major mining project was halted this week. Analysts expect the setback to reverse a downward trend in global cobalt pricing, as Katanga was in the process of ramping up to become the biggest cobalt-producing asset in the world... Regardless of any delays, the existing suspension timescale will significantly tighten the market for cobalt intermediates over the near term."

Cobalt market news

On November 9, S&P Platts reported:

"Cobalt disruption could prevent surplus next year and support pricing: mining executive. News that Katanga Mining's 75%-owned Kamoto Copper Company subsidiary has suspended sales and shipments of cobalt from the Democratic Republic of Congo because of uranium contamination could prevent a temporary surplus in 2019 and help push cobalt prices to a level to encourage new production, a cobalt mining executive said this week. Kamoto, which is in a joint venture with DRC state-owned Gecamines, was expected to produce around 34,000 mt of cobalt next year, according to Katanga's guidance. This, along with around 14,000 mt expected from ERG in 2019, was likely to result in a small surplus of cobalt in 2019, ahead of an expected ramp-up in cobalt demand for batteries in electric vehicles from 2020 onward. Nazarewicz said without the interruption at Katanga, there was a possibility of the global cobalt market seeing a surplus in 2019 and depressing prices. This would have delayed "further investment in new production, so you get to a point in the early 2020s where demand for cobalt in batteries for EVs is rising rapidly, with no new cobalt coming on and you end up with a significant deficit."

Cobalt company news

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

On October 29, China Molybdenum announced: "2018 Third Quarterly Financial Report."

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

On October 26, Glencore announced: "Third quarter 2018 production report. Own sourced copper production of 1,063,100 tonnes was 116,600 tonnes (12%) higher than the comparable 2017 period and own sourced cobalt production of 28,500 tonnes was 8,700 tonnes (44%) higher, mainly reflecting the restart of Katanga’s processing operations."

Katanga Mining [TSX:KAT]

On November 6, Reuters reported: "Uranium levels force Glencore unit Katanga to halt cobalt exports. To remove uranium found in levels above the acceptable limit for export, Katanga plans to build an Ion Exchange system, at a cost of around $25 million. It said it should be completed by the end of the second quarter of next year, provided it obtains the necessary permits."

On November 16, Bloomberg reported: "Congo lifts export ban on Glencore's copper and cobalt unit. Katanga Mining Ltd., which is controlled by Glencore, said in a statement earlier Thursday it had been blocked on Nov.9 from exporting copper and cobalt from Congo over a dispute around payments on copper that was never actually mined years ago. The Congo government is asking for $129.8 million to settle the dispute, a number rejected by Katanga."

Note that this is a separate issue to the above discussed cobalt export ban.

You can also 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 October 31, Sherritt International announced: "Sherritt reports higher production at Moa JV and stronger balance sheet for Q3 2018." Highlights include:

  • "Adjusted EBITDA was $40.6 million, up 20% from $33.8 million in Q3 2017. The increase was largely due to higher realized nickel and cobalt prices, more than offsetting the impact of lower oil production due to the expiration of a production sharing contract at Varadero West as well as the impact of higher mining and input costs, including increased sulphur and energy expenses. Year-to-date adjusted EBITDA for 2018 has improved by 26% to $126.5 million.
  • Sherritt’s share of finished nickel production at the Moa Joint Venture (“Moa JV”) was 4,457 tonnes, up 10% from last year, while finished cobalt was 465 tonnes, flat from Q3 2017. Nickel production in Q3 2018 improved largely due to the arrival of new mining equipment that enabled Moa to surpass its target mixed sulphide production for the quarter.
  • The average-reference price for nickel improved 26% from last year to US$6.01/lb while the average-reference price for cobalt increased 22% to US$35.21/lb.
  • Sherritt ended the quarter with $207.1 million in cash, cash equivalents and short-term investments, up from $197.2 million at June 30, 2018.
  • Net loss was $13.3 million or $0.03 on a per share basis. In Q3 2017, Sherritt incurred a net loss of $69.5 million or $0.24 per share."

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

On October 26, Volkswagen announced: "New power from old cells: Audi and Umicore develop closed loop battery recycling. Together with the material technology experts, the car manufacturer then determined the possible recycling rates for battery components such as cobalt, nickel and copper. The result: In laboratory tests, more than 95 percent of these elements can be recovered and reused."

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

No significant news for the month.

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

On October 31, MMC Norilsk Nickel announced: "Norilsk Nickel Group announces preliminary consolidated production results for 3Q quarter and 9 months of 2018." No cobalt figures were given.

Investors can also read my article: "Time To Buy Norilsk Nickel Before The Nickel Boom Perhaps Starts In 2018", or my article "An update on Norilisk Nickel."

Freeport-McMoRan Inc. (NYSE:FCX)

On October 24, Freeport-McMoRan Inc. announced:

"Freeport-McMoRan reports third-quarter and nine-month 2018 results. Freeport-McMoRan Inc. reported net income attributable to common stock of $556 million ($0.38 per share) in third-quarter 2018 and $2.1 billion ($1.45 per share) for the first nine months of 2018. After adjusting for net gains of $42 million ($0.03 per share), primarily reflecting adjustments to assets held for sale and the fair value of potential contingent consideration, partly offset by nonrecurring charges for Cerro Verde's new three-year collective labor agreement [CLA], adjusted net income attributable to common stock totaled $514 million ($0.35 per share) in third-quarter 2018."

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

On October 29, Highlands Pacific announced: "Quarterly activities report-for the period ended 30 September 2018." Highlights include:

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

  • "Production of 8,804 tonnes of nickel and 793 tonnes of cobalt in the September quarter.
  • Product shipments were largely suspended during the September quarter but have resumed again in October.
  • Major expansion of production capacity being studied by project manager MCC.
  • Project partners continuing to work towards closure of Cobalt27 streaming transaction."

Corporate

  • Cash totalled US$15.1 million (A$21.0 million) at the end of September 2018."

Possible mid-term producers (after 2021)

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

On October 31, eCobalt Solutions announced:

"eCobalt provides progress update on its Idaho Cobalt Project. Commenting on progress of the new Feasibility Study, Mr. Callahan further stated: "We are in the final stretches of finalizing the new Feasibility Study. We continue to see strong interest in the project, and we expect to have project financing in place in early 2019 in order to re-commence development activities in the second quarter once the weather permits."

Upcoming catalysts include:

  • 2018/19 - Updated FS, off-take agreements, project financing.

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

On October 30, Fortune Minerals announced: "Fortune reports Federal, Northwest territories and Tłįchǫ Government approvals for the Tłįchǫ all-season road."

On November 15, Fortune Minerals announced:

"Fortune reports Northwest Territories government selection of proponent to Construct Tlicho Road. Fortune Minerals Limited is pleased to report that Government of the Northwest Territories ("GNWT") Finance Minister, Robert C. McLeod, has announced that North Star Infrastructure has been selected as the Preferred Proponent to fund, construct, operate and maintain the Tlicho All-Season Road ("Tlicho Road"), pursuant to the Request for Proposal for the project (see GNWT November 13, 2018 news release). North Star Infrastructure is a consortium comprised of Kiewit Canada Development Corporation and Peter Kiewit and Sons (Equity Provider, Design-Builder and Service Provider), and Hatch Corporation and Thurber Engineering Ltd. (Design Team Members). The GNWT and North Star Infrastructure are finalizing the project agreement and construction is anticipated to begin in the fall of 2019."

Investors can read the latest company presentation here.

Upcoming catalysts include:

  • 2018/19 - Updated Feasibility Study capital and operating costs.
  • 2019 - Possible off-take or equity partners; project financing.

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

On November 12, RNC Minerals announced:

"RNC Minerals produces 13,497 oz of Gold in October 2018. RNC Minerals Corporation is pleased to report production from the Beta Hunt Mine of 13,497 mined gold ounces for the month of October 2018 at an average grade of 9.06 g/t. Year-to-date October 31, 2018 mined gold ounces was 71,957, an increase of 60% versus the prior year period, including 25,355 ounces thus far from the Father's Day Vein and a total of 30,145 ounces of high grade coarse gold from all areas. The production table below (Table 1) breaks out production of high grade coarse gold and total gold production. Mining of high grade coarse gold has resumed in the Father's Day Vein discovery area."

On November 13, RNC Minerals announced:

"RNC announces strong third quarter 2018 results. Mark Selby, President and CEO, commented, "The third quarter was transformative for both RNC and the Beta Hunt Mine. The major high-grade gold Father's Day Vein discovery generated sufficient cash to eliminate over $30 million in long-term and convertible debt and significantly improve the balance sheet. With cash and cash equivalents of $18.8 million as of November 12, 2018, RNC has sufficient funds for near term operational and exploration initiatives. The discovery, and a greater understanding of the pyritic sediment structures associated with the discovery, has resulted in extensive new insights into the significant high-grade gold potential of the mine. RNC generated more than $10 million EBITDA in the third quarter, and with less than half of the low-cost, high-grade gold production sold in the third quarter, we expect to realize significant additional EBITDA in the fourth quarter.""

On November 14, RNC Minerals announced: "RNC Minerals refiles third quarter MD&A and news release. RNC Minerals (TSX: RNX) ("RNC") announces that its Management Discussion and Analysis (MD&A) for the three and nine months ended September 30, 2018, and related news release, each filed on SEDAR on November 13, 2018, is being refiled to correct a clerical error."

Upcoming catalysts include:

  • Late 2018 - Drill results and any further possible high grade discoveries at Beta Hunt.
  • H1 2019 - Beta Hunt gold mine production report. Updated FS for Dumont results due out.

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

No significant news for the month.

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 November 2, Australian Mines announced: "Australian Mines takes lead on scandium R&D for next generation of battery storage technology."

On November 5, Australian Mines announced: "Extensional drilling at Sconi Project continues to unlock growth potential for nickel and cobalt resources." Highlights include:

  • "Further positive results returned from Resource extension drilling at Sconi Cobalt-Nickel-Scandium Project.
  • Cobalt and nickel intersections included: 15 metres at 0.14% cobalt from 11 metres. 9 metres at 0.30% cobalt from 9 metres. 11 metres at 0.16% cobalt from 8 metres. 10 metres at 1.80% nickel from 29 metres. 20 metres at 1.13% nickel from 36 metres. 14 metres at 1.03% nickel from 21 metres."

On November 20, Australian Mines announced: "Bankable Feasibility Study supports strong commercial case for developing Sconi Cobalt-Nickel Scandium Project, located in North Queensland." Highlights include:

  • "Sconi BFS financial metrics 1: Average annual revenue from production (life of mine): A$512 million. Average annual EBITDA (life of mine): A$295 million. Project payback period (post tax): 5.2 years. Pre-tax IRR: 21% Post-tax IRR: 15%. Post tax project NPV 8%: A$697 million. Total capital cost estimate: US$974million, of which: Processing plant capital cost: US$730 million. Non-Process capital costs: US$103 million. Mine construction capital cost: US S$31 million. Contingencies: US$110 million.
  • Sconi BFS project metrics: Life of Mine [LOM]: 18 Years. Processing plant throughput: 2.0 million tonnes per annum. Average strip ratio over Life Of Mine (waste:ore): 1.06: 1.00. Average cobalt sulphate production (Years 2-6): 9,898 tpa. Average nickel sulphate production (Years 2-6): 70,894 tpa. Average cobalt sulphate production (Life-of-Mine): 8,496 tpa. Average nickel sulphate production (Life-of-Mine): 53,301 tpa.

  • Project economics published in BFS use a long-term forecast commodity prices for nickel (US$7 per pound 2), cobalt (US$30 per pound) and scandium (US$1,000 kilogram), as well as an AUD to USD exchange rate of US$0.71: A$1.00."

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

Upcoming catalysts include:

  • Late 2018/ early 2019 - First drill results for Thackaringa.
  • April 2019 - Resource upgrade for Sconi. Sconi construction hoped to begin.
  • 2019 - Updated resource and a PFS for Flemington to commence.
  • 2021 - Possible Sconi production start with a 3-year ramp.

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

On October 30, Ardea Resources announced: "Goongarrie Pilot Plant trial produces battery grade crystals." Highlights include:

  • "Ardea pilot plant testing has successfully produced nickel and cobalt sulphate crystals.
  • Crystals meet specifications of several battery industry off-takers.
  • Marketing samples can now be evaluated by off-takers and battery end-users."

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 latest update Ardea article here.

Upcoming catalysts include:

  • 2018/19 - Possible off-take partner and funding.
  • Mid 2019 - DFS results - KNP cobalt project.
  • 2021/22 - Possible production start.

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

On November 22, Cobalt Blue announced:

"Thackaringa Joint Venture Update. Cobalt Blue Holdings Limited (ASX:COB or the Company) has received notice from Broken Hill Prospecting Limited [ASX:BPL] indicating unless COB provides an undertaking not to enforce or act upon any of the resolutions put to the vote at the adjourned meeting of the Thackaringa Joint Venture (TJV) Management Committee on 16 November 2018, BPL will seek declaratory, and possibly injunctive, relief from a Court seeking to invalidate the resolutions voted upon at that meeting. One of the resolutions which BPL seeks to invalidate relates to a revision and amendment to the 2018/2019 Drilling Campaign which was initially approved on 28 August 2018 by BPL and COB."

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

My interview with CEO Joe Kaderavek is on Trend Investing here, with an updated interview discussing the LG deal here, and my update article here.

Upcoming catalysts include:

  • H2 2018 - Possible further LG agreements (off-take, funding).
  • 2019 - Optimisation improvements on the PFS, drill results.
  • End Q2 2019 - Resource update.
  • ~End 2020 - BFS to be released. Project approvals completed.
  • 2022/23 - Possible producer.

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

Aeon Metals 100% own 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 November 21, Aeon Metals announced: "Marley resource drilling-mineralisation continuity. These results continue to confirm the excellent geological continuity of both Cu-Co mineralisation and the peripheral Pb-Zn-Co-Ag mineralisation through the current Resource. This same geology has also been shown extending over 7km west of the current Resource with similar high grades encountered."

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 0.53, and the latest company presentation here.

Upcoming catalysts include:

  • 2018/19 - 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 October 30, GME Resources released their September 2018 Quarterly Activities Report. The report gives good summary of their PFS results and current resources.

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.

On October 26, Havilah Resources announced: "$6M Investec standby facility approved."

On November 1, Havilah Resources released their Annual Report 2018.

Note: Investors can learn more by reading my article "Havilah Resources Has Huge Potential." You can also view my CEO interview here, and the company presentation here.

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

https://static.seekingalpha.com/uploads/2018/5/17/saupload_CCZ-broken-hill-project-0d326bb6bb73690e.width-800_thumb1.png

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 October 25, Castillo Copper announced: "MOU with Noble Group to facilitate monetising stockpiles. Both groups will work towards delivering a binding off-take agreement enabling Noble Group to exclusively distribute up to 200,000t of copper concentrate from existing stockpile ore."

On October 31, Castillo Copper released their Quarterly Activities Report.

On November 20, Castillo Copper announced: "Update - Noble Group stockpile MOU off-take. Samples have been sent to a specialist metallurgical group offshore for third party verification and optimisation. Metallurgical test-work undertaken to date on samples from McDonoughs’ stockpile demonstrated copper concentrate recoveries >80%, with grades up to 22%. Upon acceptable completion of this process, CCZ will aim to complete a binding off-take agreement with Noble Group to distribute up to 200,000t of copper concentrate."

Investors can view my CEO interview here, and an investor presentation here.

Alloy Resources [ASX:AYR]

On October 18, Alloy Resources Limited announced: "Horse Well drilling underway. Aircore drilling campaign underway at Horse Well JV. Drilling to test soil anomalies north and south of Coralie Jean discovery and for extensions to Warmblood."

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 October 30, Cassini Resources released their Quarterly Activities and Cashflow Report.

Investors can read the latest company presentation here.

Upcoming catalysts include:

  • Q2 2019-PFS due.

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 October 30 Nzuri Copper released their Quarterly Activities and Cashflow Report.

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 has already 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 November 13 Celsius Resources announced: "Opuwo Cobalt Project Scoping Study update. Updated Scoping Study scheduled for release in late Q1, 2019, which will reflect outcomes of four key work programs."

On November 23 Celsius Resources announced: "Extensive targets defined from airborne EM survey Kaoko Kobalt Project, Namibia."

Investors can view the company presentations here.

Barra Resources Ltd. (OTC:BRCSF) [ASX:BAR] / Conico Ltd. [ASX:CNJ]

Barra is developing the Mt Thirsty project, which is a 50/50 joint venture with Conico, to produce cobalt suitable for the metal, chemical and battery markets.

On October 30, Barra Resources announced: "Maiden Indicated and Inferred Mineral Resource Estimate of 29,900 Oz at 2.59g/t gold declared for Main Lode Deposit. Total Mineral Resources at Burbanks increased 24% to 125,300 Oz. Mineral Resource estimates only a very small proportion of the strike and depth potential of the Burbanks high-grade gold system."

On October 31, Barra Resources released their Quarterly Activities & Cashflow Report.

Cruz Cobalt [CUZ] (OTCPK:BKTPF)

On November 5, Cruz Cobalt announced: "Cruz Cobalt to begin drill program at the Hector Cobalt Property in Cobalt, Ontario. The initial diamond drilling program will consist of 4-7 holes."

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

On November 8, First Cobalt announced: "First Cobalt begins testing material for refinery restart. First Cobalt Corp. is pleased to announce that it has commenced testing cobalt hydroxide material as feedstock for the First Cobalt Refinery. Discussions are underway with cobalt miners and commodity traders to explore options for ethically sourced cobalt hydroxide."

Investors can view the company presentations here.

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

No news for the month.

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 2,905.7 tonnes of cobalt.

On November 13, Cobalt27 announced:

"Cobalt 27 announces normal course issuer bid, US$6.8 million settlement of insurance claim and corporate update. The Company has received settlement of its insurance claim related to the loss through theft of 76 tonnes of the Company’s premium grade cobalt from Vollers Holland BV Rotterdam warehousing facility. Cobalt 27 intends to use the proceeds from the insurance settlement, as well as any excess liquidity, to repurchase its common shares pursuant to a normal course issuer bid as, in the opinion of management and the board of directors, its common shares have recently traded in a price range that represents a substantial discount to the Company’s net asset value and does not reflect the underlying value of the Company.... Cobalt 27 (to buy back) up to 8,400,000 of its common shares."

Investors can read my articles "Cobalt 27: Don't Forget The Nickel Exposure", and "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), 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], 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], Global Energy Metals [TSXV:GEMC] [GR:5GE1] (GBLEF), Hinterland Metals Inc. (OTC:HNLMF), Hylea Metals [ASX:HCO], 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: MCCBF), MetalsTech [ASE:MTC], Metals X (ASX:MLX) (OTCPK:MLXEF), Meteoric Resources [ASX:MEI], Mincor Resources (OTCPK:MCRZF) [ASX:MCR], Namibia Critical Metals [TSXV:NMI] (OTC:NMREF), 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].

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The portfolio gives investors broad exposure across the EV metals miners covering lithium, cobalt, nickel, rare earths, and graphite. I help as an analyst for 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. The management fee is 0.95% pa.

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Conclusion

Cobalt spot prices were slightly down in November recovering after the Katanga cobalt export ban was announced. Generally, November was a down month for the sector, and some disappointing news from some of the Australian cobalt juniors. The world will need new sources of cobalt supply by 2022/2023, so the cobalt juniors will need to make much better progress in 2019 and 2020 to be able to be producers by 2022/2023. The Katanga cobalt ban shock of November is a stark reminder how easily the supply chain can be disrupted, especially out of the DRC.

Highlights for the month were:

  • Cobalt prices have perhaps started to recover due to the Katanga cobalt export ban (to ~mid-2019).
  • Eurasian Resources Group forecasts a strong metals price recovery. The cobalt market is undergoing a seismic shift in demand and supply will struggle to keep pace.
  • Uranium levels force Glencore unit Katanga to halt cobalt exports.
  • RNC Minerals produces 13,497 oz of gold in October 2018.
  • Australian Resources BFS results - Post tax project NPV 8%: A$697 million, Post-tax IRR: 15%. Total capital cost estimate: US$974 million.
  • Ardea pilot plant testing has successfully produced nickel and cobalt sulphate crystals.
  • Cobalt Blue and BPL dispute worsens.
  • Castillo Copper and Noble Group making progress towards arranging copper off-take from Cangai stockpiles.
  • Alloy Resources - Horse Well drilling underway.
  • Barra Resources - Maiden I & I Resource estimate of 29,900 Oz at 2.59g/t gold.
  • First Cobalt begins testing material for refinery restart.
  • Cobalt 27 to buy back up to 8,400,000 of its common shares.

As usual, all comments are welcome.

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

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], 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], COBALT27 [TSV:KBLT]. 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: I may receive 50% of the profit from the Lithium & electric metals fund's (ISIN DE000LS9L822) management fee, due to providing analyst services to the fund.

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