Cobalt Miners News For The Month Of December 2018

Summary

Cobalt spot prices were flat in December.

Cobalt market news: Congo declares battery metal cobalt "strategic" in move that triples royalties from 3.5% to 10%.

Cobalt miners news: Cobalt Blue Thackaringa JV dilution triggered and Havilah Resources signs a Native Title Mining Agreement at Kalkaroo.

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

The past month saw cobalt prices move sideways, and a fierce sell off in global equities.

Cobalt price news

As of December 20, the cobalt spot price was US$24.95, similar to US25.06/lb last month. The LME cobalt price is US$54,000/tonne. The London Metals Exchange [LME] inventory moved higher for the past month (see graph below).

Cobalt spot prices - 1-year chart - USD 24.95/lb

1 Year Cobalt Prices - Cobalt Price Chart

Source: InfoMine.com

LME cobalt 1 year inventory

6 Month Cobalt LME Warehouse Levels - Cobalt Levels Chart

Source: Infomine.com

Cobalt demand and supply

On November 26 Metal Bulletin reported:

The global market for electric vehicle [EV] batteries in 2025 could be 10 times bigger than in 2018, Swiss investment bank UBS said in a report published last week. This should help to increase lithium demand by as much as four times, to drive a 41% increase in nickel consumption, and to more than double the use of cobalt over the same period, the report added. The growing use of electric vehicles could drive lithium demand to 1.15 million tonnes per year by 2025, from 265,000 tpy in 2018, UBS said. Consumption of nickel for batteries would total 665,000 tonnes in 2025, compared with 60,000 tonnes currently, according to the bank. This would push total nickel use to 3.1 million tpy from 2.2 million tpy. And the UBS report said that demand for cobalt has room to grow to 260,000 tpy in 2025, from 120,000 tpy in 2018.

Cobalt market news

A recent interview from The Assay of energy metals expert Chris Berry gives his latest views on cobalt:

While I used to love the cobalt story and am biased in a bullish way given the supply and demand outlook, there are too many unknowns here to pound the table and call for higher prices and limitless demand. With Glencore and ERG adding ample supply to the market in the immediate term, conversion capacity continuing to ramp up in China, and a slow and gradual shift in cathode chemistry to NCM 811 from today’s more prevalent NCM 523 or 622, my modelling suggests no reason to panic here before 2022-2023, which gives mining companies, financiers, and end users ample time to prepare (although to achieve meaningful production by that time requires securing off takes and funding today). I think you could see a refined cobalt chemical market that is 2.5X larger in 2025 than it is today overall, with EV demand expanding by 5X, but given the above concerns, this doesn’t translate into permanently higher pricing.

On December 4 The Financial Times reported:

Congo declares battery metal cobalt ‘strategic’ in move that triples royalties. The decree, which was promulgated as part of the country’s new mining code, will increase the royalties on cobalt from 3.5 per cent to 10 per cent, hitting some of the largest international miners such as Glencore and China Molybdenum.

On December 19 Investing News reported:

Cobalt forecast 2019: Execs optimistic cobalt demand is here to stay. According to Milewski, in 2018 the market saw a large artisanal supply-side response out of the Democratic Republic of Congo [DRC]. This material, in intermediate form, put pressure on prices. Similarly, First Cobalt’s Mell said the amount of artisanal mining coming from the DRC was higher than anticipated, pushing deficit projections a little bit further out than originally expected. According to ERG, from a demand perspective cobalt is one of the fastest-growing metals, but the question is whether supply can be reined in. “If operators that source artisanal supply are properly regulated, and artisanal miners are adequately remunerated, this segment — more than 25 percent of supply — will be more costly and less attractive,” Sobotka said.

On December 19 Metal Bulletin reported:

China removes high-energy density requirement for new EV battery projects. The energy density threshold was removed from the final version of the regulations on Tuesday December 18 owing to the fact that current technology is not developed enough to support an EV battery reaching such a high-energy density, according to market participants.....“It is still too early to say how much support the removal of the requirement for higher energy density in this regulation could give to the spot cobalt sulfate price,” a second battery material producer said. The removal of the requirement could also be positive for new investment. “The government will just pause the requirement. However, the whole EV battery industry is still heading towards a trend for a higher energy density."

Cobalt company news

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

On December 5 China Molybdenum announced:

China Molybdenum: CMOC to buy base and precious metals trading company. China Molybdenum Co., Ltd. announced that its wholly-owned subsidiary CMOC Limited has agreed to buy 100% equity interests of IXM B.V., an indirect wholly-owned subsidiary of NCCL Natural Resources Investment Fund LP. The purchase price is US$495 million (equivalent to HK$3.87 billion) plus the final net profits. CMOC will satisfy the consideration of the proposed acquisition mainly through existing cash reserves and if required, bank borrowings.

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

On December 11 4-traders reported:

Zambia miners to cut $500 million in spending over tax changes. The changes, which include a 1.5% royalty hike, may force miners to cut as many as 7,000 direct jobs and "more than double this number of indirect jobs." The spending cut is the latest aftershock of a struggle between Zambia and its mine investors over a bigger slice of miner revenues, amid rising mineral prices. The new royalties come into force in January as Zambia joins the growing list of resource-rich nations to hike taxes. The new measures include a 5% tax on copper- and cobalt-concentrate imports, which risk hurting Zambia's mineral processing, according to the chamber, which represents miners such as First Quantum Minerals, Vedanta Resources PLC and Glencore.

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

On December 3 Katanga Mining announced:

Katanga Mining announces commissioning of phase 2 of the whole ore leach plant and provides an operational update. The commissioning of the pre-leach circuits is continuing as scheduled and is expected to be completed by the end of 2018. A progressive ramp-up of the facility is expected to follow with the objective of achieving full capacity of the WOL plant by the end of Q1 2019.

On December 18 Katanga Mining announced:

Katanga Mining announces approval of agreement to settle Ontario securities commission matters. Katanga Mining Limited today announced that the Ontario Securities Commission (the "Commission") has approved a global settlement agreement between Staff of the Commission and the Company, certain of its former directors and officers and its Chief Executive Officer relating to the previously disclosed investigation by Staff into certain of the Company's historical disclosures.

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 December 20 Sherritt International announced: "Sherritt International: selects Leonovus Inc. to pilot a hyper-secure multi-cloud data storage solution."

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

On November 29 Umicore SA announced: "Umicore wins award for best Belgian sustainability report 2018 (large organisations)."

On December 17 Umicore SA announced: "Umicore expands production capacity for fuel cell catalysts. Umicore announced today that it will be expanding its production capacity for fuel cell catalysts in South-Korea to support the growth of Hyundai Motors Group as well as other automotive customers."

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

On December 5 Sumitomo Metal Mining Co. announced:

Acquisition of interest in Quebrada Blanca Copper Mine. Sumitomo Metal Mining Co., Ltd. [SMM] and Sumitomo Corporation [SC] have decided to acquire from Canadian diversified resource company Teck Resources Limited (headquarters: Vancouver B.C., Canada, “Teck”) a 30% (SMM: 25%, SC: 5%) interest in the Quebrada Blanca Copper Mine (located in Region I, Republic of Chile, “QB Copper Mine”).

On December 19 4-traders reported: "Acceptance of the Philippine Presidential Mineral Industry Environmental Award by Coral Bay Nickel Corporation."

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

On November 29 MMC Norilsk Nickel announced:

Nornickel to keep count of energy consumption. The Automatic System for Commercial Accounting of Power Consumption project [ASCAPC] in Nornickel’s Polar Division is now at full swing. The project worth of RUB 950 mln is part of the Technology Breakthrough programme that will help digitise and automate most of Nornickel’s mining and processing operations.

On November 30 MMC Norilsk Nickel announced: "Nornickel modernises its data centres. The Company has completed the upgrade of data centres’ engineering infrastructure at two key production sites — Polar Division and Kola MMC — as part of Nornickel’s global programme to roll out high-performance processing hardware."

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 December 21 Freeport-McMoRan Inc. announced:

Freeport-McMoRan announces successful completion of transaction with the Government of Indonesia, marking the beginning of a new partnership. Richard C. Adkerson, Vice Chairman of the Board, President and Chief Executive Officer, said, "The completion of this transaction reflects the culmination of a multi-year process to accomplish a 'win/win' outcome for all parties. This landmark event establishes the beginning of a new long-term partnership between FCX and the Republic of Indonesia.....Both FCX and the Government of Indonesia take pride in what we have accomplished together at the Grasberg operation in Papua, which has been developed into one of the world’s largest copper and gold mining assets. We look forward to a future of enhanced long-term stability for PT-FI’s operations, the continued application of best practices for environmental management and to providing greater benefits to the people of Papua, to the Republic of Indonesia and to local employees, suppliers and contractors while generating attractive returns for our shareholders."

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

On December 10 Highlands Pacific announced: "Frieda River Project Feasibility Study. Highlands holds a 20% interest in the Frieda River joint venture, with PanAust holding 80%. Post tax NPV8% was US$1.8 billion, post tax IRR of 11%. CapEx of US$6 billion (US$2.8 billion for mine and process plant. US$3.2 billion hydro-electric facility), and a 33 year mine life."

Possible mid-term producers (after 2021)

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

On December 7 RNC Minerals announced: "Media Advisory: RNC Minerals to display rare gold samples that are among largest ever discovered.

On December 17 RNC Minerals announced: "RNC Minerals announces $9 million bought deal & concurrent Private Placement financing.....The Company intends to use the net proceeds of the Offering and the Private Placement to fund exploration and development expenditures at the Company's Beta Hunt mine and for general corporate purposes." The raise is at CAD 0.46, and the private placement went to Eric Sprott.

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.

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

No news for the month.

Upcoming catalysts include:

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

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

No news for the month.

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.

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

On December 20 Clean TeQ announced:

Clean TeQ Sunrise project–approval of development application modification 4. Sam Riggall, Chief Executive Officer, commented, “While Clean TeQ Sunrise already had development approval, Modification 4 optimises and further enhances the operability of this globally significant development Project. We appreciate the input of our community stakeholders to the modification process; this has been vital in ensuring our future co-existence and Clean TeQ’s social licence to operate.”

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)

No news for the month.

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)

No significant 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 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 December 4 Cobalt Blue Holdings announced: "Thackaringa JV dilution triggered." Highlights include:

  • "Cobalt Blue Holdings Limited [COB], as [Interim] Manager of the Thackaringa Joint Venture [TJV] issued a Billing Statement and Called Sum to the Joint Venture partners, COB and Broken Hill Prospecting Limited [ASX: BPL].
  • BPL failed to pay the Called Sum as required by the TJV Agreement and then issued an Optional Dilution Notice.
  • COB has recalculated BPL's Joint Venture Interest and notified this to BPL as required by the TJV Agreement Dilution Provisions.
  • As a result of this recalculation, COB believes it now holds an effective 93.68% beneficial interest in the Thackaringa Cobalt Project and BPL an effective 6.32% beneficial interest."

On December 5 Cobalt Blue Holdings announced: "Thackaringa Cobalt Project drilling & water supply update." Highlights include:

  • "Cobalt Blue Holdings Limited [ASX:COB] is pleased to announce initial results from its major resource definition drilling program underway at Thackaringa, NSW.
  • Initial results reinforce potential for substantial mine life.
  • Drilling continues to reaffirm the geological model with a total of 5,686 metres completed to date – in excess of 15,000 metres will be drilled over the campaign, making the current program the largest undertaken at the project. Previously, between 2H 2016 and 1H 2018, COB has drilled a total of 20,445 metres (38 diamond drill holes, 93 RC drill holes, and 3 RC drill holes with diamond tails) over three campaigns.
  • The current announcement summarises results from the first three diamond drill [DD] holes (for 120 metres total) and four reverse circulation [RC] holes (for 766 metres total) that were drilled at the Pyrite Hill deposit. Significant intersections include: 18THR001 – 56m at 824ppm Co, 11.1% Fe & 9.4% S from 146m. 18THR002 – 68m at 1218ppm Co, 13.4% Fe & 13.4% S from 116m. 18THR003 – 52m at 1042ppm Co, 11.1% Fe & 11.2% S from 93m. 18THR004 – 91m at 826ppm Co, 12.8% Fe & 10.2% S from 67m.
  • Updated Resource Model due end Q1 2019.
  • Cobalt Blue is proud to announce that it has secured up to 1.5 GL of water per annum that will be supplied by Essential Water at a metered off-take point on the western outskirts of Broken Hill."

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 December 12 Aeon Metals Holdings announced: "Further high grade copper-cobalt assay results at Walford Creek Project. WFDH344 -39m @ 0.78% Cu, 0.12% Co and 26gt Ag from 222m, Incl 19m @ 1.24% Cu, 0.19% Co and 26gt Ag from 242m."

On December 19 Aeon Metals Holdings announced:

Assay results for 17 holes outside the resource at Walford Creek. Aeon Metals Ltd. today provides assay results from a further 17 holes of exploration drilling undertaken during 2018 outside the current Resource at the Company’s 100% owned Walford Creek Project. WFDH406: 20m @ 0.76% Cu, 0.13% Co and 31gt Ag from 320m, Incl 10m @ 1.14% Cu, 0.18% Co and 35gt Ag 322m.

On December 21 Aeon Metals Holdings announced:

Final assay results for 26 holes in side the resource at Walford Creek." Some highlights include:

  • "WFDH345: 20m @ 1.72% Cu, 0.30% Co and 26gt Ag from 265m.
  • WFDH353: 25m @ 0.63% Cu, 0.18% Co and 30Ag from 266m, Incl 11m @ 1.10% Cu and 0.30% Co.
  • WFDH355: 19m @ 0.91% Cu, 0.15% Co, 1.05% Pb, 3.29% Zn and 52gt Ag from 259m."

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.

No news for the month.

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-gold project about 60km south-west of Broken Hill in South Australia. They also have the nearby Kalkaroo copper-cobalt-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 December 19 Havilah Resources announced: "Kalkaroo native title Mining agreement signed." Highlights include:

  • "Kalkaroo Native Title Mining Agreement signed by the relevant native title holders.
  • Based on an innovative profit-sharing arrangement for the mutual benefit of all stakeholders.
  • Includes non-financial criteria such as employment, training, and business development opportunities.
  • Way now open for the grant of a Mining Lease over the Kalkaroo copper-cobalt-gold project."

"Kalkaroo is expected to be operative for at least 14 years. Production is forecast to average 4,000 tonnes of copper, 100,000 ounces of gold and 1,000 tonnes of cobalt per year."

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 Resource's 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 December 21 The Resources Regulator announced:

Resources Regulator suspends exploration licenses. The NSW Resources Regulator has suspended all operations on two exploration licences held by mining companies Total Mineral Pty Ltd and Total Iron Pty Ltd. Exploration Licences 8625 and 8635 were being operated by Castillo Copper Limited, about 45km northwest of Grafton, in the North Coast Region of NSW. The Resources Regulator’s Director of Compliance Operations, Matthew Newton, said action was taken to suspend the operations due to a number of serious compliance issues being identified at a recent inspection.

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

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 November 28 Cassini Resources announced: "New targets at One Tree Hill Prospect. Highlights include:

  • "Diamond drilling extends One Tree Hill mineralisation.
  • A new large, strong downhole EM conductor has been identified.
  • New conductor will be a priority target for 2019 exploration program.
  • An emerging mineralised system with significant scale potential."

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.

No significant news for the month.

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 30 Celsius Resources announced: "Opuwo regional target drilling commences." Highlights include:

  • "Drilling to commence at the first five of nine high priority prospects.
  • Phase 1 of the drill program consists of 13 holes for approximately 3,500 metres across five prospects: 1. Opuwo Lineament: cobalt, copper, zinc 2. Opuwo Corridor West: cobalt, zinc 3. Opuwo Corridor South: copper, zinc 4. Opuwo Corridor Central: vanadium 5. Otjiurunga: lead, silver, vanadium, zinc.
  • Phase 2 of the drill program will be conducted in 2019, across a further four prospects."

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.

No news for the month.

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

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

On December 19 First Cobalt announced:

First Cobalt files preliminary base shelf prospectus. First Cobalt Corp. announces it has filed a preliminary short form base shelf prospectus with the securities regulators in the Provinces of Alberta, British Columbia and Ontario. When made final or effective, this filling will allow the Company to make offerings of common shares, subscription receipts, warrants or any combination thereof of up to C$20 million during the 25-month period that the base shelf prospectus is effective.

Investors can view the company presentations here.

Cruz Cobalt [CUZ] (OTCPK:BKTPF)

On December 19 Cruz Cobalt announced:

Cruz Cobalt completes drill program at the Hector Cobalt Property in Cobalt, Ontario. Cruz President, James Nelson, stated “We are very excited to complete our drill program on the Hector Cobalt Prospect in Ontario that we’ve been working towards over the past two years. This region has been one of the most prolific cobalt districts in the world and we look forward to receiving results from our initial drill program in the new year. We feel that 2019 is setting up to be a year of accelerated growth for the company.”

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

On November 26 Bankers Cobalt announced:

Bankers reports adding 943 km² license to high potential Kamanjab Namibia Project. Bankers Cobalt Corp., is pleased to announce entering a two year option agreement to acquire a 70% interest in an additional 943 km² permit showing high potential for copper, cobalt and other metals including silver and gold adjoining the recently acquired Kamanjab Project in Namibia.

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

Alloy Resources [ASX:AYR]

No news for the month.

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.

No significant news for the month.

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] (OTC:GMRSF), 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.

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

Conclusion

Cobalt spot prices were flat in December. The past month has been another rough month for investors, despite ever improving tailwinds from electric vehicles still setting record sales each month. There are several reasons for the poor sentiment such as the trade war, the US market correction, and cobalt price weakness in H2 2018 due to increased DRC supply. The cobalt juniors are no doubt feeling the impact of the poor sentiment. If the macro issues can improve in 2019 then we should see a recovery in sentiment and recovery for the beaten down cobalt miners. The cobalt demand fundamentals remain intact with ~2.5x more cobalt needed by end 2025. Meanwhile the new Congo 10% cobalt royalty should serve to demotivate miners from expanding their Congo operations and hopefully keep a lid on supply. Time will tell.

Highlights for the month were:

  • Chris Berry - "I think you could see a refined cobalt chemical market that is 2.5X larger in 2025 than it is today overall."
  • UBS - "The global market for electric vehicle [EV] batteries in 2025 could be 10 times bigger than in 2018."
  • Congo declares battery metal cobalt ‘strategic’ in move that triples royalties from 3.5% to 10%.
  • In 2018 the market saw a large artisanal supply-side response out of the Democratic Republic of Congo [DRC].
  • China removes high-energy density requirement for new EV battery projects.
  • Sumitomo Metal Mining - Acquisition of interest in Quebrada Blanca Copper Mine in Chile.
  • Cobalt Blue - Thackaringa JV dilution triggered.
  • Aeon Metals - Further high grade copper-cobalt assay results at Walford Creek Project.
  • Havilah Resources signs a Native Title Mining Agreement for their Kalkaroo copper-cobalt-gold project in South Australia.

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], CASSINI RESOURCES (ASX:CZI) , HAVILLAH RESOURCES [ASX:HAV], CONICO LTD [ASX:CNJ], CRUZ COBALT CORP [TSXV:CUZ], POSEIDON NICKEL [ASX:POS], CASTILLO COPPER (ASX:CCZ), 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: The information in this article is general in nature and should not be relied upon as personal financial advice.
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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