Seeking Alpha

Cobalt Miners News For The Month Of August 2019

Summary

Cobalt spot prices rose strongly in the month of August.

Cobalt market news - Cobalt miners Glencore and CTT plan to cut cobalt production due to low prices.

Cobalt miners news - Jervois Mining completes mergers with both eCobalt and M2 Cobalt. Aeon Metals achieves strong drill results.

Welcome to the August 2019 cobalt miner news. The past month saw cobalt prices rise strongly, and several companies announce they are terminating or cutting back cobalt production due to low prices. This follows on from ERG's decision to cut cobalt output earlier in the year, and many DRC artisanal miners switching from cobalt to copper. Experts see the cobalt supply cut backs as positive for cobalt prices.

Cobalt price news

As of August 21, the cobalt spot price was US$14.29/lb, up from US12.93/lb last month. The LME cobalt price is US$30,500/tonne. LME Cobalt inventory was 836 tonnes, a slight fall in August. More details on cobalt pricing (in particular the more relevant cobalt sulphate), can be found here at Fast Markets MB.

Cobalt spot prices - 1-year chart - USD

1 Year Cobalt Prices - Cobalt Price Chart

Source: InfoMine.com

On August 19 Mining MX reported:

Cobalt price surges 30% in wake of Glencore decision to mothball Mutanda. “The silver lining being that this move (putting Mutanda on care and maintenance) will likely have significant positive consequences for cobalt pricing with Mutanda providing 15% of the global cobalt market,” the bank said in a report.

Cobalt demand and supply

On August 8 Reuters reported:

Glencore's cobalt stock overhang contains prices despite mine suspension. Cobalt prices have started to firm after Glencore announced plans to freeze output at the world’s largest mine of the battery material, but traders say an overhang of stock held by the commodity trader and miner will inevitably cap gains. Prices have ticked up about $2,000 a tonne this week but traders are wary because Glencore is holding 10,300 tonnes of cobalt, according to its half-year report published this week.

On August 16 Metal Bulletin reported:

CTT cuts cobalt production in August, September on low prices. Compagnie de Tifnout Tiranimine (CTT) cut cobalt production at its operations in Morocco at the beginning of the August and will continue to operate at a lower rate in September as a result of low cobalt prices.

On August 16 Argus Media reported:

Huayou (Cobalt) terminates investment in DRC cobalt mine. Prices for cobalt products and their profitability have fallen sharply in the past year. The termination is designed to improve the firm's capital use efficiency....

Source

Cobalt market news

On August 2 Reuters reported:

Indian firms set up JV to mine for lithium, cobalt overseas. Three Indian state-run companies are to form a joint venture to buy mining assets overseas that have minerals such as lithium and cobalt, which are used in the manufacture of batteries for electric vehicles. The new joint venture “will help in building partnerships with other mineral rich countries like Australia and those in Africa and South America,” the mines ministry said.

On August 7 Investing News reported:

Mutanda closure “changes outlook considerably” for cobalt. This week’s announced closure of the Mutanda copper-cobalt mine in the Democratic Republic of Congo is going to significantly shake up the depressed cobalt market, according to Benchmark Mineral Intelligence analyst Caspar Rawles. “Prices are likely to rise, and early indications that we have picked up from the market are that they have already started to react,” he said. Rawles also said that the decision to place the Mutanda mine — which is the largest single source of cobalt globally — into care and maintenance at the end of 2019 is likely to help other producers, though the broader market is already steeped in uncertainty. It will help prices, which is good from a producer perspective, but it places more uncertainty on the cobalt supply chain,” he said.

On August 9 Mining.com reported:

China Molybdenum seeks opportunities to beef up battery metals business. Fresh from closing a $518 million acquisition, metals firm China Molybdenum Co (CMOC)remains open to deals that would boost business in the booming electric vehicle battery sector, the company’s chief executive said on Friday. “I’m a believer,” Li ‘Steele’ Chaochun, Chief Executive Officer of CMOC, told a mining club luncheon in Melbourne. “We are talking about (demand trends for) 20, 30, 40 years. That’s a structural change and in a structural change we think there is a long-term opportunity.

Cobalt company news

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

On July 31 Glencore released their Half Year Production report stating: Own sourced copper production of 663,000 tonnes was 33,200 tonnes (5%) lower than H1 2018. Own sourced cobalt production of 21,300 tonnes was 4,600 tonnes (28%) higher than H1 2018..... As previously advised, Katanga is conducting a comprehensive business review which is expected to indicate lower production levels for 2019. The review is nearing completion and updated guidance, with accompanying presentation material, is expected to be provided next month, upon release of our interim financial statements. In H1 2019, Katanga produced 109,700 tonnes of copper and 6,100 tonnes of cobalt in hydroxide.

On August 7 Glencore released their Half Year Report stating:

At Mutanda, we are planning to transition the operation to temporary care and maintenance by year end, reflecting its reduced economic viability in the current market environment, primarily in response to low cobalt prices.

Company wide CEO Ivan Glasenberg, commented:

Our performance in the first half reflected a challenging economic backdrop for our commodity mix, as well as operating and cost setbacks within our ramp-up/development assets. Adjusted EBITDA declined 32% to $5.6 billion.

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

On July 31 Mining Weekly reported:

Katanga plans to commission ion exchange plant in 2020. The boards of TSX-listed Katanga Mining and its subsidiary Kamoto Copper Company (KCC) have approved the construction of an ion exchange plant and, subject to obtaining the required authorisations, plan to commission the plant in the second quarter. Katanga’s output of cobalt contained in hydroxide decreased to 2,607 t in the second quarter ended June 30, from the 3,511 t produced in the first quarter.

On August 6 Katanga Mining announced:

Katanga Mining announces 2019 second quarter financial results. Gross loss increased to $94.8 million in Q2 2019 from $92.5 million in Q1 2019. Gross loss increased to $187.3 million in Q2 2019 YTD from $70.3 million gross profit in Q2 2018 YTD.

You can also read my original article from January 1, 2017, "Katanga Mining is a potential turnaround story" (at C$0.13) or my recent article "Katanga Mining looks better value again."

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

On July 25 China Molybdenum announced:

Completion of the very substantial acquisition of the target company which holds IXM. The metal trading business will become an important part of the Company’s businesses, which will optimize the resource allocation and strategic decision-making of the Company and improve the international competitiveness and influence in the industry of the Company.

Eurasian Resources Group ("ERG") - private

ERG own the Metalkol facility in the DRC where ERG processes cobalt and copper tailings with a capacity of up to 24,000 tonnes of cobalt pa.

On August 5 Eurasian Resources Group announced: "New smelting furnace commences production at Aksu Ferroalloy plant."

On August 12 Eurasian Resources Group announced:

ERG’s Metalkol RTR announces inaugural clean cobalt performance report. Eurasian Resources Group (“ERG” or “The Group”), a leading diversified natural resources group, is pleased to announce the release of Metalkol RTR’s inaugural performance report as part of the Clean Cobalt Framework, an innovative initiative launched at the Metalkol RTR operation in the DRC in 2018.....It is critical to us and our supply chain that we can assure the responsible production of cobalt for battery technologies and at the same time work with partners to create sustainable impacts locally.” “This is reflected through our clean cobalt goals and partnerships that are especially important to us, from customers and end users to organisations including the Good Shepherd Sisters and Pact. Through a range of initiatives, we support the transition of children out of mining and champion sustainability and responsibility in the cobalt value chain.”

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

On July 31 Umicore SA announced: "Half year results 2019. Robust performance in challenging market conditions and compared to record levels in 2018." Highlights include:

  • "Revenues of €1.6 billion (-3% year on year).
  • Recurring EBITDA of €357 million (-2% year on year).
  • Recurring EBITDA of €240 million (-8% year on year).
  • ROCE of 12.3% (16.6% in the first half of 2018).
  • Recurring net profit (Group share) of €151 million (-8% year on year).
  • Recurring EPS of €0.63 (-9% year on year).
  • Cash flow generated from operations of €308 million (€102 million in the first half of 2018) and free cash flow from operations of €50 million (-€104 million in the first half of 2018) including stable working capital versus end of 2018.
  • Net debt at €1,059 million corresponding to an average net debt/recurring EBITDA ratio of 1.34."

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

On August 8 Sumitomo Metal Mining Co. announced: "Consolidated Financial Results for the First Quarter Ended June 30, 2019." Diluted earnings per share for the Three months ended June 30, 2019 was 51.9 Yen compared to 105.21 Yen a year ago.

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

On July 31 Sherritt International announced: "Sherritt reports higher nickel and cobalt production at Moa JV in Q2 2019." Highlights include:

Summary of key Q2 developments

  • "Sherritt’s Cuban partners ratified an overdue receivables agreement for the repayment of US$150 million from Energas S.A., and made US$5.4 million in payments under the plan through June 30, 2019.
  • Received $13.5 million in dividend distributions from the Moa Venture (“Moa JV”) and US$32.1 million in Cuban energy payments, a total that included early payments on amounts scheduled to be paid to Sherritt in Q3 2019.
  • Sherritt ended Q2 2019 with cash, cash equivalents and short-term investments of $176.8 million, down slightly from $177.3 million at the end of Q1 2019. The decrease was due to the timing of capital expenditures and interest paid on outstanding debentures, partly offset by positive changes to working capital due to the receipt of Cuban energy payments and Moa JV distributions. Sherritt’s liquidity position at the end of Q2 2019 included $75.7 million of cash and cash equivalents held by Energas in Cuba.
  • Filed a National Instrument 43-101 technical report on SEDAR that confirmed the Moa JV’s current Mineral Reserves and outlined increased Mineral Resources with the potential to extend Moa’s mine life.
  • Sherritt’s share of finished nickel production at the Moa JV in Q2 2019 was 3,969 tonnes, up 6% from last year, while finished cobalt was 415 tonnes, up 7% compared to Q2 2018.
  • Q2 2019 Adjusted EBITDA(1) was $9.5 million, down from $40.6 million in Q2 2018. The decrease was largely driven by the 12% and 64% year-over-year declines in realized nickel and cobalt prices, respectively.
  • Implemented a number of austerity measures, including the elimination of discretionary expenditures, the deferral of non-critical projects and limiting the number of new hires, aimed at preserving liquidity.
  • Sir Richard Lapthorne, CBE, was named Chairman of Sherritt’s Board of Directors following the Company’s 2019 Annual Meeting of shareholders."

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

On July 31 MMC Norilsk Nickel announced: "Nornickel announces preliminary consolidated production results for 1Н 2019." No cobalt production was mentioned due to cobalt being a by-product.

On August 20 MMC Norilsk Nickel announced: "Nornickel reports 1H2019 consolidated IFRS financial results." Highlights include:

  • "Consolidated revenue increased 8% y-o-y to USD 6.3 billion owing to output growth of all key metals and higher palladium price.
  • EBITDA expanded 21% y-o-y to USD 3.7billion owing to higher metal revenue and the ramp-up of the Bystrinsky copper project, with EBITDA margin reaching 59%.
  • CAPEX was almost unchanged from last year amounting to USD 0.5 billion. The Company made final investment decisions on strategic growth projects such as the expansion of the Talnakh concentrator [TOF-3 project] and the South Cluster mining project, with the active construction phase scheduled to start in 2H19.
  • Net working capital temporarily increased to USD 1.3 billion as a result of scheduled amortization of advance payments for delivered metals from customers.
  • Free cash flow amounted to USD 2.2 billion.
  • Net debt/EBITDA ratio decreased to 0.8x as of June 30, 2019.
  • Cash interest paid decreased 23% to USD 202 million owing to the ongoing optimization of debt portfolio.
  • On February 12, 2019, Moody’s upgraded the Company’s credit rating to “Baa2” with a “Stable” outlook in the wake of raising Russia's sovereign ceiling for foreign currency debt to “Baa2” and upgrade of Russia’s sovereign rating to investment grade level of “Baa3” with “Stable” outlook.
  • On July1, 2019, the Company paid final dividend for 2018 in the amount of RUB 792.52 (approximately USD 12.56) per ordinary share for the total amount of approximately USD 2.0billion.
  • On August 20, 2019, the Company’s Board of Directors recommended to the General Meeting of shareholders [EGM] to approve interim dividend for the first half of 2019 in the amount of RUB 883.93 per share (USD 13.27 at the RUB/USD exchange rate the Russian Central Bank as of August 20, 2019) for the total amount of USD 2.1 billion. The Board of Directors set the date of the EGM on September 26, 2019...."

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."

Possible mid-term producers (after 2022)

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

On July 30 RNC Minerals announced: "RNC Minerals June 2019 quarterly production and operations update-25% reduction in milling costs achieved as a result of HGO acquisition."

On August 15 RNC Minerals announced:

RNC announces second quarter 2019 results; Integration of Higginsville Gold operations proceeding on target. The updated feasibility study delivered a US$920 million Net Present Value ("NPV") based on a large scale, low-cost, long-life project with initial nickel production in concentrate of 33ktpa, ramping up to 50ktpa in the Phase II expansion. Production is expected to be approximately 1.2 million tonnes (2.6 billion pounds) of nickel in concentrate, over a 30-year life with an initial capital expenditure of US$1.0 billion. Phase I C1 cash costs of $2.98/lb ($6,570/t). The study estimated Life-of-mine C1 cash costs $3.22/lb ($7,100/t Ni) and AISC of $3.80/lb ($8,380/t) of payable nickel (low 2nd quartile of cash cost curve).

On August 21 RNC Minerals announced: "RNC Minerals produces 7,873 ounces of gold in July 2019."

Upcoming catalysts include:

  • 2019 - Gold and Nickel production results for Beta Hunt. Any partner/funding decisions on the Dumont Ni-Co Project.

Jervois Mining [ASX:JRV] [GR:IHS] (merger with eCobalt Solutions [TSX:ECS] (OTCQX:ECSIF))

On July 31 Jervois Mining announced: "Jervois Mining quarterly activities report to 30 June 2019." Highlights include:

  • "Merger with M2 Cobalt Corp completed following approvals from M2 Cobalt shareholders and the British Columbia (Canada) Supreme Court.
  • Merger with eCobalt completed following approvals from eCobalt and Jervois shareholders and the British Columbia Supreme Court.
  • Jervois raised A$16.5 million after quarter end to finalise the feasibility study (“FS”) for Idaho Cobalt Operations and to advance exploration in Uganda.
  • Ugandan prospects continue to progress with grid soil sampling underway at Kilembe and drilling at Bujagali, with results expected by September 2019.
  • Jervois commenced trading on TSX-Vin Canada, advanced OTC listing application in the United States.
  • eCobalt’s former CEO Michael Callahan and Chairman Scott Hean appointed Non-Executive Directors of Jervois."

On August 6 Jervois Mining announced: "Jervois Mining commences drilling at Idaho Cobalt operations."

Investors can read about the merger with Jervois Mining here.

Upcoming catalysts include:

  • 2019 - Updated FS, off-take agreements, project financing. Note these may be subject to change due to the merger.

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

No news for the month

Investors can read the latest company presentation here.

Upcoming catalysts include:

  • 2019 - Updated Feasibility Study capital and operating costs.
  • 2019 - Possible off-take or equity partners, project financing.

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

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

On July 26 Clean TeQ announced: "Quarterly activities report–June 2019." Highlights include:

  • Clean TeQ Sunrise front end engineering and design progressing steadily, approximately 43% complete.
  • Fluor appointed Project Management Contractor for Sunrise Project.
  • Macquarie Capital appointed to initiate Sunrise partnering process.
  • Construction complete, with commissioning underway, of three world first commercial-scale ion-exchange metal recovery and water purification plants in DRC, Australia and Oman.
  • $14.6 million R&D cash rebate received in July 2019.

Investors can also read the latest company presentation here.

Upcoming catalysts include:

2019 - Further off-take agreements and project funding/partnering.

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

On July 26 Australian Mines announced: "Quarterly activities report period ended 30 June 2019." Highlights include:

Sconi Cobalt-Nickel-Scandium Project

  • "Updated mine plan, Ore Reserve Estimate and financials for the Sconi Project, which significantly improved the already favourable economics for the project; Planned Life of Mine of the Project has increased to at least 30 years. The NPV8 (pre-tax) has increased to $1.47 billion. Total free cash flow after tax has increased to $5 billion.
  • The Company’s Queensland-based Mineral Resources, including Sconi, Bell Creek and Minnamoolka, now exceed 115 million tonnes, following a new Mineral Resource Estimate for the Bell Creeks at ellite deposit. Equates to 738,359 tonnes of contained nickel and 71,575 tonnes of contained cobalt.
  • Working toward finalizing along form off-take agreement with SK Innovation for 100% of the cobalt sulphate and nickel sulphate produced from the Sconi Project, whilst separately advancing project financing."

On August 6 Australian Mines announced:

Long-form off-take agreement signed with SK Innovation for Sconi Project. SK Innovation has agreed, subject to the satisfaction of certain conditions precedent, to purchase 100% of the battery-grade cobalt sulphate and nickel sulphate produced from Australian Mines’ wholly-owned Sconi Cobalt-Nickel-Scandium Project in North Queensland (“Sconi Project”) for an initial seven-year period (which may be extended by mutual agreement for up to a further six years).

On August 12 Australian Mines reported:

Cobalt mineralisation footprint tripled at Flemington Project; mineralisation continues to remain open along strike.

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

Upcoming catalysts include:

  • 2019 - First drill results for Thackaringa.

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

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

No cobalt related news for the month; however they did announce: "Visible high-grade gold at surface atGundagai, NSW", and a "Yeoval Copper-Gold Resource Update."

Investors can view their latest company presentation here, my update Ardea article here, and CEO interview here.

Upcoming catalysts include:

  • 2019 - Possible off-take partner and funding.
  • Mid 2019 - DFS results - KNP Cobalt Project.
  • 2022/23 - Possible production start.

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

In total Cobalt Blue currently has 79.5kt of contained cobalt at their Thackaringa Cobalt Project in NSW, Australia.

On August 5 Cobalt Blue Holdings announced:

Diggers and Dealers conference....The project testwork undertaken in the Pre-Feasibility Study released in July 2018, is now being validated through larger-scale pilot tests, which will lower the risks associated with scaling up the metallurgical process for commercial operation. Similarly, further exploration has given rise to a significant increase in the size of the Mineral Resource. We are looking forward to progressing the Broken Hill Cobalt Project through a suite of comprehensive studies in 2019/20.”

On August 22 Cobalt Blue Holdings announced: "Cobalt Blue strengthens Broken Hill exploration footprint." Highlights include:

  • "Cobalt Blue Holdings [ASX:COB] is pleased to announce it has received notice of proposed grant for Exploration Licence Application 5805 (‘ELA5805’). The tenement application comprises 11 units with COB’s strategic exploration footprint in the Broken Hill region to increase by over 50% on grant.
  • ELA5805 for Group 1 Minerals, inclusive of cobalt and sulphur, is unencumbered by the Thackaringa Joint Venture.
  • The application area is dominated by stratigraphy of the Willyama Supergroup, including the prospective Thackaringa Group successions known to host the Thackaringa Cobalt deposits."

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:

  • September 2, 2019 - Expert and a final determination to the COB/BPL feud.
  • 2019 - Optimisation improvements on the PFS, drill results.
  • ~End 2020 - BFS to be released. Project approvals completed.
  • 2023 - Possible producer.

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

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

On July 26 Aeon Metals announced: "High-grade Vardy drilling results." Highlights include:

  • "High-grade intersections within infill resource drilling at Vardy expected to increase Resource volume, grade and confidence levels and potentially extend preliminary open pit dimensions.
  • Best intercept of 37m at 1.27% Cu, 0.17% Co and 41g/t Ag from 285m, including 24m at 1.69% Cu, 0.20% Co and 41g/t Ag from 288m (hole WFDH419)."

On July 29 Aeon Metals announced: "Amy exploration update. Two further diamond holes within the Amy zone have hit strong base metals mineralisation within the PY3 horizon."

On July 30 Aeon Metals announced: "Bioleach selected for process flowsheet."

On August 6 Aeon Metals announced: "Vardy drilling update." Highlights include:

  • "Drilling in central Vardy area continues to deliver shallow, high-grade copper and cobalt mineralisation adjacent to the Fish River Fault (NYSE:FRF).
  • Impressive shallow intersections include: WFDH445 -13m @ 4.64% Cu and 32g/t Ag from 37m. WFDH440 -21m @ 3.56% Cu and 28g/t Ag from 21m. WFDH426 -12m @ 1.38% Cu and 0.36% Co from 76m. WFDH441 -16m @ 2.01% Cu and 0.32% Co from 52m."

On August 21 Aeon Metals announced: "Vardy drilling update." Highlights include:

  • "Drillingin western Vardy area continues to deliver high-grade copper and cobalt mineralisation.
  • Recent impressive intersections include: WFDH420: 19m @ 1.38% Cu and 0.24% Co from 269m. WFDH438: 34m @ 2.13% Cu and 0.31% Co from 47m."

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 the latest company presentation here.

Upcoming catalysts include:

  • 2019 - Further drilling and drill results, further upgrades to the resource.

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

No news for the month.

Investors can view the company presentations here.

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

Havilah 100% own the Mutooroo copper-cobalt project about 60km west of Broken Hill in South Australia. They also have the nearby Kalkaroo copper-cobalt project, as well as a potentially large iron ore project at Grants.

On August 12 Havilah Resources announced: "Mutooroo AEM survey identifies strong conductors." Highlights inclde:

  • "Airborne EM survey to explore for Mutooroo style massive sulphide mineralisation within the Mutooroo Copper-Cobalt District completed.
  • A number of priority anomalies identified for ground EM follow-up.
  • Scorpion Prospect confirmed as Priority One type target."

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

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 an estimated 830,000 tonnes of nickel metal and 52,000 tonnes of cobalt.

No news for the month.

Investors can read a company investor presentation here.

Castillo Copper [ASX:CCZ]

On July 31 Castillo Copper announced: "June quarterly activities report." Highlights include:

  • "Revised strategic intent published which highlighted the Board’s plans to transform CCZ into a mid-tier copper group, with assets in Australia – Cangai Copper Mine (CCM) and Mt Oxide – and emerging Africa.
  • New South Wales Resources Regulator (NSWRR) grants approval for exploration work at CCM to resume but trading in CCZ shares to remain suspended pending formalizing an enforceable undertaking agreement.
  • Plans to seek a dual listing on the London Stock Exchange underway, with the appointment of SI Capital –a leading UK corporate finance advisory firm with a strong track record in the resources and mining sector......
  • Subsequent to the period close: Proposed acquisition of five prospective copper assets in Zambia and launch of the three pillars strategy. Update on three pillared strategy that outlines building blocks in place and release of new corporate video likely to be finalized."

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 in Western Australia. The company also has several other promising projects.

On July 30 Cassini Resources announced: "Activities report for the quarter ended 30 June 2019." Highlights include:

West Musgrave Project

  • "Optimal process throughput rate confirmed.
  • New process flowsheet to add value.
  • Resource infill drilling continues.
  • Excellent results from One Tree Hill Prospect highlights potential for new discovery.
  • Pre-Feasibility update in the September Quarter."

Corporate.

  • "A$7.0M raised via placement to strategic and sophisticated investors."

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.

On July 30 Nzuri Copper announced: "June 2019 quarterly activity report.....Democratic Republic of Congo ministerial approval received for Chengtun transaction...."

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.

On July 31 Celsius Resources announced:

Quarterly activities report June 2019. Opuwo Cobalt Project, Namibia (CLA 95%). During the quarter, the company completed and finalized the in-progress phases of work with respect to the Opuwo Cobalt Project, since taking the decision to slow evaluation on the project in March 2019, primarily due to the continuing low cobalt price.

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. Barra is has two promising gold projects in Western Australia.

No cobalt related news for the month.

Investors can view the company presentations here.

Cruz Cobalt [CUZ] (OTCPK:BKTPF)

On July 25 Cruz Cobalt announced: "Cruz Cobalt Corp. announces final approval of CSE listing and delisting from TSXV."

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

No significant cobalt news.

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

Alloy Resources [ASX:AYR]

On July 30 Alloy Resources announced: "Paterson Rio Tinto JV exploration update...Heritage surveys and site access arrangements progressed in preparation for drill testing of six initial target areas. RC drilling program currently planned to be completed by November2019."

On July 31 Alloy Resources announced: "June 2019 quarterly activities report." Highlights Include:

Horse Well Gold Project JV (51% - earning 60%)

  • "300% increase in mineral resources to 238,000 ozs.
  • Focus on high-grade mineral resources at Horse Well."

Paterson Project – Rio Tinto farm-in

  • "Heritage and general access work partially completed.
  • Revision of planned drilling to an 8-hole deep RC program designed to obtain fresh rock samples from a number of prospects."

Cobalt27 Capital Corp. [TSXV:KBLT] [GR:27O][LN:OUPZ] (OTC:CBLLF) (Pala takeover and to form Nickel28)

Cobalt27 is a listed investment company that offers unique exposure to a portfolio of cobalt and nickel assets - Cobalt metal, cobalt royalties and direct cobalt/nickel properties, and one lithium royalty. Cobalt27 owns 2,905.7 tonnes of cobalt.

On July 24 Cobalt27 Capital Corp. announced:

Cobalt 27 files NI 43-101 technical report on the producing Ramu Nickel-Cobalt Project. Anthony Milewski, Chairman and CEO of Cobalt 27, commented, “We are excited to be releasing additional information on the Ramu asset so that investors can better understand the world-class nature of this operation and the nickel and cobalt exposure it provides to investors. Ramu is a first-quartile project on the global nickel cost-curve, has an extensive mine life, with potential to deliver 30+ years, and compelling exploration upside. The hydroxide product produced at Ramu is optimal for electric vehicles and battery storage markets, in fact already being sold to battery makers, enhancing shareholders’ nickel exposure at a time when global inventory levels are approaching levels not seen since the end of 2012, when nickel was trading at approximately US$8 per pound, on average.”

On August 14 Cobalt27 Capital Corp. announced:

Cobalt 27 files management information circular seeking approval for proposed acquisition by Pala investments for C$5.75 per Cobalt 27 share and creation of Nickel 28.

June's news was "Pala Investments to Acquire Cobalt 27 for C$501 Million; Creation of Nickel 28. Offer of C$5.75 per share, comprised of C$3.57 in cash plus C$2.18 in shares of the newly established Nickel 28."

Other juniors and miners with cobalt

I'm 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), Carnaby Resources [ASX:CNB], 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: OTCPK: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].

Conclusion

August was a month of change with announcements of large cobalt supply withdrawals primarily by Glencore (Mutanda Mine DRC). This resulted in a solid cobalt price rise.

Highlights for the month were:

  • Mutanda closure “changes outlook considerably” for cobalt.
  • Cobalt miners Glencore and CTT plan to cut cobalt production due to low prices. Glencore announces their large DRC Mutanda Copper Cobalt Mine to be put on temporary care and maintenance by year end.
  • China's Huayou pulls out of Congo cobalt mine investment after price slump.
  • Katanga Mining - Gross loss increased to $94.8 million in Q2 2019 from $92.5 million in Q1 2019.
  • Umicore reported a "recurring net profit (Group share) of €151 million (-8% year on year)."
  • Norilsk Nickel - Consolidated revenue increased 8% y-o-y to USD 6.3 billion owing to output growth of all key metals and higher palladium price.
  • RNC Minerals produces 7,873 ounces of gold in July 2019.
  • Jervois Mining completes mergers with both eCobalt and M2 Cobalt.
  • Australian Mines signs off-take agreement (100% of the battery-grade cobalt sulphate and nickel sulphate) with SK Innovation for Sconi Project.
  • Aeon Metals strong drill results: WFDH445 -13m @ 4.64% Cu and 32g/t Ag from 37m. WFDH440 -21m @ 3.56% Cu and 28g/t Ag from 21m.

As usual all comments are welcome.

Disclosure: I am/we are long GLENCORE (LSX:GLEN), KATANGA MINING [TSX:KAT], NORSILK NICKEL (LME:MNOD), AUSTRALIA MINES [ASX:AUZ], FORTUNE MINERALS [TSX:FT], RNC MINERALS [TSX:RNX] , ARDEA RESOURCES [ASX:ARL], COBALT BLUE [ASX:COB], AEON METALS [ASX:AML], HAVILLAH RESOURCES [ASX:HAV], CASTILLO COPPER (ASX:CCZ), CASSINI RESOURCES [ASX:CZI], COBALT27 [TSV:KBLT], CONICO LTD [ASX:CNJ], FIRST COBALT [TSXV:FCC], POSEIDON NICKEL [ASX:POS]. 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.