Seeking Alpha

Cobalt Miners News For The Month Of November 2019

Matt Bohlsen
Investment advisor, portfolio strategy, growth at reasonable price
Summary

Cobalt spot prices were moved sideways in the month of November. Cobalt hydroxide price are up 55% in the past three months.

Cobalt market news - Pallinghurst and Traxys to invest $2bn in battery materials.

Cobalt miners news - Katanga Mining to raise an estimated CDN$7.6 billion under discounted rights offering. China Moly joins Huayou in Indonesia nickel project.

Welcome to the November 2019 cobalt miner news. The past month saw cobalt prices move sideways, and plenty of news from the cobalt miners. The biggest news/shock for the month was the massive Katanga Mining C$7.6b discounted rights offering to pay back debt owed to Glencore. Clearly this has a very large dilution impact on shareholders. On a more positive note many of the cobalt juniors continue to make good progress.

Cobalt price news

As of November 21, the cobalt spot price was US$16.10/lb, exactly the same as the US16.10/lb from last month. The LME cobalt price is US$35,000/tonne. LME Cobalt inventory was 690 tonnes, slightly down from last month (711 tonnes). More details on cobalt pricing (in particular the more relevant cobalt sulphate), can be found here at Fast Markets MB.

Cobalt spot prices - 5-year chart - USD 16.10 5 Year Cobalt Prices - Cobalt Price Chart

Source: InfoMine.com

As reported in August 2019 by Reuters quoting UBS: "We expect the cobalt price to increase around 60 percent over the next 18 months back to $20 a pound."

On November 12 Mining.com reported: "Cobalt hydroxide price up 55% in three months."

Cobalt demand and supply

On November 6 Reuters reported:

Global cobalt mine output growth forecast to slow in 2020: Antaike. Cobalt production in 2020 forecast to rise by 5,000 tonnes, Antaike nickel analyst Joy Kong said. That would be a 3.5% increase to the 143,600 tonnes produced this year.

On November 6 Fastmarkets reported:

Adequate domestic cobalt supply, languishing demand dampen Chinese appetite for imported metal - sources. Chinese buyers’ appetite for imported cobalt metal is likely to shrink in the near future because domestic supply is increasing and there is little room for demand to increase, market participants told Fastmarkets. Cobalt production in China is estimated to reach 9,300 tonnes in 2019, up 17% from last year.

Source: Bloomberg New Energy Finance

Cobalt market news

On November 12 The Financial Times reported:

Pallinghurst and Traxys to invest $2bn in battery materials. The Pallinghurst-Traxys Battery Materials joint venture will look to take controlling stakes in lithium, graphite and cobalt projects in developed countries and invest in associated facilities that process and improve ore…“The electric vehicle and energy storage revolution is gaining pace. The future demand for the critical battery grade materials is set for explosive growth,” said Arne Frandsen, co-founder of Pallinghurst…The companies will not be targeting investments in continents such as resource-rich Africa and Latin America through the venture but only projects in North America, Europe and Australasia.

On November 13 Investing News reported (video):

"Caspar Rawles: Will cobalt see a reversal of fortunes in 2020?" Caspar discusses the megafactories (now over 100), battery chemistry, and cobalt in 2020. He sees a more positive cobalt price outlook in H2, 2020.

On November 18 Euractiv reported:

Breaking new ground: The EU’s push for raw materials sovereignty......“We have identified with the Member States that there are 10 potential mining projects for lithium that, if developed, could allow the EU to move from 1 to 30% of the world production by 2030,” he said. It appears to have worked. The bank’s energy lending policy, rubber stamped last week, is the first to include mention of critical raw materials.

Cobalt company news

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

On October 25 Reuters reported:

Glencore's cobalt output rises 21%, copper drops 4%. Glencore reported a 21% rise in year-to-date cobalt production on Friday, helped by a ramp-up at its Katanga mine in the Democratic Republic of Congo, while copper output dropped 4% as it prepared to shutter its Mutanda operation in the country. The commodity miner and trader, which will place the Mutanda copper and cobalt mine in the DRC on “care and maintenance” from the end of this year, said nine-months cobalt production stood at 34.4 kilo tonnes and copper output at 1 million tonnes.

On October 25 Glencore announced:

Third quarter 2019 production report. Own sourced cobalt production of 34,400 tonnes was 5,900 tonnes (21%) higher than the comparable prior period, primarily reflecting Katanga’s ramp-up.

On October 25 Glencore announced: "Glencore one of seven mining, metals companies to partner on responsible sourcing with World Economic Forum."

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

On October 25 Engineering News reported:

Glencore’s DRC subsidiary progressing cobalt plant upgrades. TSX-listed Katanga Mining expects cobalt debottlenecking projects at its 75%-owned Kamoto Copper Company’s (KCC’s) mine, in the Democratic Republic of Congo, to continue throughout next year. KCC produced 59,424 t of copper cathode in the third quarter, compared with the 52,514 t produced in the second quarter. The production of cobalt contained in hydroxide increased to 4,763 t in the third quarter, compared with 2,607 t in the second quarter.

On November 7 Katanga Mining announced: "Katanga Mining announces rights offering backstopped by Glencore to fund debt repayment." Highlights include:

  • "Company to raise an estimated CDN$7.6 billion under discounted rights offering.
  • Glencore to provide full standby commitment.
  • US$5.8 billion in debt owed to Glencore to be repaid with approximately US$1.5 billion residual debt to Glencore to remain outstanding until 2023.
  • New NI 43-101 technical report filed."

On November 7 Katanga Mining announced:

Katanga Mining announces 2019 third quarter financial results. Cobalt revenue increased to $27.5 million in Q3 2019 from $20.9 million in Q2 2019. Cobalt revenue decreased to $48.2 million in Q3 2019 YTD from $323.0 million in Q3 2018 YTD. The increase in cobalt revenue in Q3 2019 versus Q2 2019 was due to increased sales volumes with a focus during Q3 2019 on exporting dried material which has a higher cobalt contained value compared to Q2 2019 where a mixture of high moisture and dried material was sold. The decrease in cobalt revenue in Q3 2019 YTD versus Q3 2018 YTD is due to the effect of the temporary suspension of export and sale of cobalt from November 6, 2018 to April 15, 2019 as well as sales deferrals due to the mechanical breakdown of the dryers noted earlier.

On November 20 Katanga Mining announced:

Katanga Mining announces change in CEO position. Katanga Mining Limited today announces that the board of directors has approved the appointment of Mr. Mark Davis to the position of Chief Executive Officer of the Company, effective as of November 19, 2019. Mr. Davis was designated to act as CEO by Glencore International AG ("Glencore") pursuant to the management services agreement between the Company and Glencore entered into in January 2019. Mr. Davis replaces Mr. Jeff Gerard as CEO and has assumed Mr. Gerard's seat on the Company's board of directors.

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

On November 10 Reuters reported:

China Moly joins Huayou in Indonesia nickel project. China Molybdenum Co said it planned to take an indirect 30% stake in an Indonesian nickel project as it looks to increase its exposure to the growing market for battery metals. China Moly, which already operates one of the world’s biggest cobalt mines in the Democratic Republic of Congo, said it would initially acquire a 21% interest in the Huayue Nickel Cobalt joint venture, which plans to produce 60,000 tonnes a year of mixed nickel hydroxide cobalt. Huayou President Chen Hongliang said last Tuesday he expected the Huayue project to start up within two years.

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 October 28 Eurasian Group announced:

Eurasian Resources Group one of seven mining and metals companies partner on responsible sourcing with world economic forum. Eurasian Resources Group (ERG)....have joined forces to accelerate the responsible sourcing of raw materials with the World Economic Forum (the Forum). Alongside with ERG, Antofagasta Minerals, Glencore, Klöckner & Co, Minsur SA, Tata Steel Limited, and Anglo American/De Beers (Tracr) are founding members.

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

On October 24 Umicore announced:

Umicore announces strategic supply agreement with Samsung SDI for NMC cathode materials. Umicore has signed a multi-year strategic agreement with Samsung SDI for the supply of close to 80,000 metric tonnes of high-performance NMC (Nickel Manganese Cobalt) cathode materials starting in 2020.

Note: This follows last months announced LG Chem multi-year supply deal.

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

On November 8 Sumitomo Metal Mining Co. announced:

Fy2019 capital expenditure and total investment plans. Sumitomo Metal Mining Co., Ltd. [SMM] plans to undertake a total of 65.9 billion yen on capital expenditures, on a group wide basis during the 2019 fiscal year (April 1, 2019—March 31, 2020). The total investment represents a 39% increase from that of FY2018.

On November 18 Sumitomo Metal Mining Co. announced: "2nd quarter of fy2019 progress of business strategy."

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

On October 28, MMC Norilsk Nickel announced:

PJSC MMC Norilsk Nickel successfully places a USD 750 million Eurobond offering maturing in October 2024.....with an annual coupon rate of 3.375%. The proceeds from the issue will be used for general corporate purposes.

On October 31, MMC Norilsk Nickel announced: "Norilsk nickel group announces preliminary consolidated production results for nine months 2019." (Cobalt is not shown, being a by-product of nickel production).

On November 5, MMC Norilsk Nickel announced: "UNIDO and RUSSIA’s PJSC Norilsk Nickel to collaborate on environmentally-sound technologies."

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."

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

On October 30 Sherritt International announced: "Sherritt reports financial results for Q3 2019." Highlights include

  • "Sherritt’s share of finished nickel and cobalt production at the Moa Venture (Moa JV) in Q3 2019 were 4,139 tonnes and 436 tonnes.
  • Excluding $77.3 million of cash and cash equivalents held by Energas, Sherritt ended Q3 2019 with cash and cash equivalents of $92.0 million. Sherritt’s consolidated cash position of $169.3 million at the end of Q3 was down from $176.8 million at the end of Q2 2019. The change in Sherritt’s liquidity was due to a combination of factors, including interest paid on outstanding debentures and the lower receipt of Cuban energy payments.
  • Excluding the impact of stock-based compensation and depreciation, administrative expenses declined by 6% to $28.6 million on a year-to-date basis from $30.3 million for the nine-month period of 2018.
  • Received $11.6 million in dividend distributions from the Moa JV, indicative of strengthening nickel and cobalt prices in the quarter.
  • Terms of Sherritt’s syndicated revolving-term credit facility were amended to lower the minimum cash balance requirement to $60 million, less undrawn credit, through the end of 2019......
  • Received US$18.8 million in Cuban energy payments during the quarter, including US$9.8 million received in accordance with the overdue receivable agreement ratified in June and US$7.5 million accepted in Cuba to support local Cuban costs relating to Sherritt’s Oil and Gas operations.
  • Q3 2019 Adjusted EBITDA(1) was $21.1 million, the highest quarterly total since Q3 2018 when $37.7 million was generated. The year-over-year decline was driven by the 61% decrease in realized cobalt prices.
  • Consistent with its strategy to focus oil and gas operations in Cuba, Sherritt sold its working interest in a natural gas field in Pakistan."

Possible mid-term producers (after 2022)

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

On November 6 RNC Minerals announced: "RNC announces strong third quarter 2019 results including production of 24,216 oz [gold], adjusted earnings of $8 million and reiterates second half 2019 guidance." Highlights include:

  • ".....AISC2 of US$1,183/oz. Announced second half 2019 production and cost guidance of 42,000 – 49,000 ozs at AISC of US$1,150–US$1,250 per oz."

On November 14 RNC Minerals announced: "RNC delivers continued strong production of 7,769 oz during the month of October."

Upcoming catalysts include:

  • 2019/20 - Gold & Nickel production results for Beta Hunt.
  • Q4 2019 - A Beta Hunt reserve estimate to be announced.
  • 2020 - Any partner/funding decisions on the Dumont Ni-Co Project.

Jervois Mining [ASX:JRV] [TSX-V: JRV] (OTC: JRVMF) [FRA: IHS] (merger with eCobalt Solutions [TSX:ECS] (OTCQX:ECSIF))

On October 30 Jervois Mining announced: "Jervois Mining quarterly activities Report to 30 September2019." Highlights include:

  • "Bankable Feasibility Study (“BFS”) for Idaho Cobalt Operations (“ICO”) commenced with completion end March 2020; DRA Global and M3 Engineering selected as lead engineers and Wood appointed to complete scoping study on a cobalt refinery.
  • 2019 drill programme at ICO now complete; exploration holes discovered previously undrilled/unknown copper-cobalt mineralisation beyond current RAM resource–“Blacktail North”.
  • Initial drilling at Bujagali, Uganda targeting Waragi cobalt/copper anomalies identified several shallow high-grade intercepts; Q4 drilling (budgeted 2,500 metres) at Waragi has now commenced; with plans including initial drilling (2,500 metres) on copper/gold targets in Kilembe area.
  • After quarter end completion of sale of Bulla bulling gold royalty for A$3.1 million, with group cash on closure at A$17.0 million.
  • Jervois shares commence trading on United States OTC exchange.
  • Executive team expanded....."

Investors can read about the merger with Jervois Mining here.

Upcoming catalysts include:

  • 2019 - Drill results, off-take agreements, project financing.

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

On November 21 Fortune Minerals announced: "

Fortune Minerals signs access agreement with the Tlicho Government for the NICO Project access road......that supports the development of the NICO cobalt-gold-bismuth-copper project (“NICO Project”) in Canada’s Northwest Territories. The NICO Project is one of the few mineral development assets outside of the Democratic Republic of Congo positioned to service the accelerating demand for cobalt in lithium-ion batteries as the global automotive industry transitions to electric vehicles. The NICO Mineral Reserves also contain more than one million ounces of gold.

Investors can read the latest company presentation here.

Upcoming catalysts include:

  • 2019/20 - 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 October 29, Clean TeQ announced: "Quarterly activities report-September 2019." Highlights inlucde:

  • "Sunrise Project design and engineering works progressing.
  • Project execution to transition to EPCM.
  • Fluor Australia to work with Clean TeQ to deliver Project Execution Plan.
  • Commissioning underway of three commercial-scale continuous ion-exchange metal recovery and water purification plants in DRC, Australia and Oman.
  • $14.6 million R&D rebate received in July."

On November 11, Clean TeQ announced:

Clean TeQ achieves successful customer acceptance of world first CIF® plant in Oman. Sam Riggall, Clean TeQ CEO, stated “Achieving successful customer acceptance of commissioning and handover of the world’s first ever commercial scale CIF® plant for this application is a moment of great significance for Clean TeQ. Confirmation from the customer that the plant is performing to expectations is strong validation of our proprietary continuous ion exchange technology....."

Investors can also read the latest company presentation here.

Upcoming catalysts include:

2019/20 - Further off-take agreements and project funding/partnering.

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

On November 4, 4-traders reported:

Australian Mines Limited:-Sconi Project offtake agreement with SK Innovation.....Australian Mines advises that SK Innovation has not issued an agreed pre-payment/ finance letter to the Company and as a result the Offtake Agreement has automatically terminated.

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.

On October 31, Ardea Resources announced: "Quarterly operations report for the quarter ended 30 September 2019." Highlights include:

Corporate

  • "Cash position at end of Quarter $10.7M."

Development

Goongarrie Nickel Cobalt Project [GNCP]

  • "Strategic Partner process continues with ongoing interest from international groups, including battery producers and end-users that need to secure long-term supplies of nickel and cobalt.
  • High grade open pit optimisations incorporating in-pit neutraliser completed, with robust results.
  • Approvals Studies ongoing with independent experts and Kalgoorlie staff completing critical process water investigations-base load water from pit de-watering, plus external bore-field targets generated."

On November 19, Ardea Resources announced:

Godolphin Resources IPO to close early. The boards of Ardea Resources Limited [Ardea] and Godolphin Resources Limited (Godolphin) are pleased to announce that commitments in excess of the Minimum Subscription for the initial public offer [Godolphin IPO] of $4.5 million have been received. Godolphin has elected to close the Ardea Priority Offer and General Offer on Monday 25th November.

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

Upcoming catalysts include:

  • Q4 2019 - Godolphin Resources spin off and IPO.
  • 2019 - Possible off-take partner and funding for the KNP Project.

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.

No news for the month.

Upcoming catalysts include:

  • Soon - Expert and a final determination to the COB/BPL feud.
  • 2019/20 - Optimisation improvements on the PFS, drill results.

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

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

On October 29 Aeon Metals announced: "Quarterly activities report for the period ending 30 September 2019." Highlights include:

  • "Walford Creek Project Scoping Study released post quarter end–excellent technical and economic outcomes.
  • High-grade intersections within infill drilling at Vardy/Marley; expected to increase Resource volume, grade and confidence levels, and potentially extend open pit dimensions.
  • Best Vardy/Marley intercept during quarter of 34m @ 2.13% Cu and 0.31% Co from 47m [hole WFDH438].
  • Further definition of previously under-drilled Amy Resource with mineralisation characteristics similar to that seen in the Vardy and Marley Resources.
  • Best Amy intercept during quarter of 40m @ 1.05% Cu, 0.11% Co, 2.21% Pb, 1.42% Zn and 39g/t Ag from 416m (hole WFDH466).
  • Extension in strike length of Walford Creek deposit with known mineralisation now stretching for 12.5km from the eastern extent of Vardy through to Hedley’s Creek.
  • Updated Resource estimates expected in December 2019 quarter."

On November 21 Aeon Metals announced: "Final 2019 Walford drilling results." Highlights include:

  • "Results from final 7 holes drilled at Marley/Vardy; better intercepts included: 12m @ 2.25% Cu and 0.12% Co [WFDH480]; and 18m @ 2.82% Cu and 0.14% Co [WFDH481].
  • Results from final 7 holes drilled at Amy:§Bestinterceptof40m @ 0.65% Cu and 0.13% Co [WFDH472]. Continuity of copper mineralisation along entire Amy zone.
  • Updated Walford Creek Project resource estimates expected in 4Q 2019.
  • Updated resource estimates, particularly at Amy, expected to deliver significant upside potential to Walford Creek PFS (targeted for completion in 2Q 2020)."

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:

  • December 2019 - Walford Creek Resource upgrade
  • Q2 2020 - PFS due.

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

On October 30, First Cobalt announced: "First Cobalt samples high grade cobalt more than 1 km from Iron Creek." Highlights include:

  • "Cobalt mineralization exposed in southern portion of First Cobalt’s property across a 295 metre strike extent, located 1.5 km from the current Iron Creek deposit.
  • Sampling along 146 metres of the exposure returned several high-grade values, such as: 10.7m of 0.24% Co, including 1.5m of 0.48% Co. 7.6m of 0.26% Co.
  • The newly named Ruby Zone is geologically similar to mineralization at Iron Creek and may be a structural offset to Iron Creek or a separate stratigraphic unit.
  • Ruby Zone is untested beyond surface sampling thus drilling and geophysical surveys will determine size and grade resource potential."

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 November 6 Havilah Resources announced: "Jupiter MT anomaly gravity survey." Highlights include:

  • "Jupiter is an exciting conceptual copper-gold target with independent corroborative indicators from regional gravity, aeromagnetic and MT geophysical surveys.
  • A detailed gravity survey is planned before year end over Jupiter to assist drill targeting."

On November 14 Havilah Resources announced: "Bassanio drilling commenced." Highlights include:

  • "Benagerie Gold & CopperPty Ltd [BGC] has commenced the first diamond drillhole on the promising Bassanio iron oxide copper-gold [IOCG] target.
  • This follows rigorous 3D modelling of the detailed gravity and aeromagnetic data to determine optimum drilling locations."

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.

On October 29 GME Resources announced: "Quarterly activities report September 2019." Highlights include:

  • "Continued engagement with potential strategic partner/offtake parties prior to progressing the Definitive Feasibility Study [DFS] for the NiWest Project.
  • Conceptual pit optimisation study in progress for high grade nickel development opportunity at Waite Kauri deposit within the NiWest Project.
  • Review of existing gold projects for potential for small tonnage, high-grade, open pit developments with toll treatment pathways, similar to the Devon Gold Project."

Investors can read a company investor presentation here.

Castillo Copper [ASX:CCZ]

On October 29 Castillo Copper announced: "September quarterly activities report." Highlights include:

  • "To progress the three pillared strategic intent to transform CCZ into a mid-tier copper group, announced plans to acquire highly prospective assets in Zambia and seek a dual listing on the London Stock Exchange.
  • Geological reviews on the Zambia assets released which highlights key salient points and enhancement to exploration upside.
  • Encouraging assays for historic stockpiles at Cangai Copper Mine [CCM] released.
  • Separate Investor Presentations on Mt Oxide and CCM released to provide more detailed overview on each project’s dynamics....."

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 October 28 Cassini Resources announced: "Activities report for the quarter ended 30 September 2019." Highlights include:

Corporate

  • "Strengthened relationship with strategic partner and shareholder, Tinci Materials."

West Musgrave Project

  • "Pre-Feasibility Study extended to include detailed evaluation of numerous potential value-add opportunities.
  • Further evaluation of opportunities to include: New comminution and float cell technologies. Remote Operations Centre and workforce. Renewable power opportunities and potential partners. Updated Resource and Reserve to inform mine design and schedule.
  • PFS delivery in early 2020."

Investors can read the latest company presentation here.

Upcoming catalysts include:

  • Early 2020 - 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].

On October 31 Nzuri Copper announced: "September 2019 quarterly activity report."

On November 18 Nzuri Copper announced:

Scheme update. Nzuri Copper Limited provides the following update on its proposed scheme of arrangement (Scheme) pursuant to which all of the issued capital in Nzuri is proposed to be acquired by Xuchen International Limited, a subsidiary of Chengtun Mining Co., Ltd. As previously advised to shareholders, the Scheme remains subject to regulatory approval being received in the People's Republic of China (PRC Regulatory Approval). This condition must be satisfied by 8.00am [WST] on the date of the second hearing (Approval Hearing) at the Supreme Court of Western Australia (Court).

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 November 22, Celsius Resources announced: "Opuwo exploration update." Highlights include:

  • "Sampling completed at Chirumbu Gold-Copper Prospect with zones of intense carbonate-quartz veining observed.
  • Exploration for feeder zone for Opuwo Cobalt Project continues with: Multi element geochemical data being modelled by internationally renowned consultant Scott Halley. Suitability of Opuwo Cobalt Project for hard rock seismic survey to be investigated.
  • Environmental Impact Assessment for the PFS commenced with specialist studies and public meetings."

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.

On October 31, Barra Resources Ltd. announced: "SPP and placement raises $1.15 million."

Investors can view the company presentations here.

Alloy Resources [ASX:AYR]

On November 21, Alloy Resources announced: "Alloy earns 60% of Horse Well JV drilling completed." Highlights include:

  • "Alloy has now earned 60% JV interest and current program being sole funded to earn an increased JV interest.
  • 31 Hole - 3,686 metre RC drill program completed.
  • Brownfields prospects target program successfully completed as planned."

Conic Metals [TSXV:NKL]

Conic Metals has been formed from the Cobalt 27 spin-out. Conic Metals offers broad exposure to nickel and cobalt through a 8.56% JV interest in Ramu, 11 royalty investments, and an equity share of ~7% of Giga Metals Corporation.

On November 19 Seeking Alpha reported: "Conic Metals will list at CAD 0.40 with a current market cap of CAD 33.4m, with 83.5m shares outstanding."

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), Bankers Cobalt [TSXV:BANC] [GR:BC2] (NDENF), 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], Cruz Cobalt [CUZ] (OTCPK:BKTPF), 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

November saw cobalt prices move sideways.

Highlights for the month were:

  • Cobalt hydroxide price up 55% in three months.
  • Global cobalt mine output growth forecast to slow in 2020.
  • Adequate domestic cobalt supply, languishing demand dampen Chinese appetite for imported metal.
  • Pallinghurst and Traxys to invest $2bn in battery materials.
  • The EU’s push for critical raw materials sovereignty makes progress.
  • Glencore reported a 21% rise in year-to-date cobalt production on Friday, helped by a ramp-up at its Katanga mine in the Democratic Republic of Congo, while copper output dropped 4% as it prepared to shutter its Mutanda operation in the country.
  • Katanga Mining to raise an estimated CDN$7.6 billion under discounted rights offering. Glencore to provide full standby commitment. US$5.8 billion in debt owed to Glencore to be repaid with approximately US$1.5 billion residual debt to Glencore to remain outstanding until 2023. New CEO appointed.
  • China Moly joins Huayou in Indonesia nickel project.
  • Umicore announces strategic supply agreement with Samsung SDI for NMC cathode materials.
  • Fortune Minerals signs access agreement with the Tlicho Government for the NICO Project access road.
  • Clean TeQ achieves successful customer acceptance of world first CIF® plant in Oman.
  • Australian Mines-SK innovation Offtake Agreement has automatically terminated.
  • Ardea Resources - Godolphin IPO fully subscribed and closed early.
  • First Cobalt samples high grade cobalt more than 1 km from Iron Creek.
  • Conic Metals lists on the TSXV at CAD 0.40.

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], Cassini Resources [ASX:CZI], 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.

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