Australian (ASX) Stock Market Forum

COB - Cobalt Blue Holdings

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Cobalt is having a bit a resurgence in the few years with Cobalt Blue (COB) seemingly having the biggest untapped aka mined resource outside of the Congo (DRC).

Plus, with the DRC deeming this a "strategic" resource in their country, higher prices and the importance of this element in the modern battery and metallurgy industries, price action, at least in the short term, seems a given.

COB now has a big multi-national taking an interest boosting the blue sky somewhat. Interesting times ahead for Aussie cobalt and in particular, cobalt sulfate producers and potential producers.

Question. Some years ago, I'm fairly certain I read somewhere (maybe in the FRW) that the USA considers cobalt a "military metal" giving cobalt special status. Now then, how important is cobalt in the grand scheme of things?

Disclaimer: I hold COB among others...
 
Cobalt price coming off highs so is COB SP
 
COB has been performing well in the last month with a clear uptrend in place between early August and the beginning of September. However, it really started to move north yesterday and that bullishness has continued today.

On 22 August the company advised that it has received notice of proposed grant for Exploration Licence Application 5805 (ELA5805). The tenement application will increase COB's strategic exploration footprint in the Broken Hill region by over 50% on grant. The application area is dominated by stratigraphy of the Willyama Supergroup, including the prospective Thackaringa Group successions known to host the Thackaringa Cobalt deposits.

However, I can't see any catalyst for the strong moves north yesterday and today. There has been nothing price sensitive announced since 22 August, so I suspect that either someone is taking a rather large position in COB, or there is important news coming.

Whatever the case, I expect to see an ASX Price and Volume query shortly requesting an explanation from the company.

big.chart-COB.gif
 
… which will probably be answered by some shoulder shrugging explanation … and then nothing further.
Do they investigate further, as to who is buying?
 
From 24 Aug 2020 announcement reads in part:

Pilot Plant Update – 2nd Delivery of Major Equipment Received
KEY POINTS:
Major items of equipment continue to arrive at our Broken Hill plant site. COB has taken delivery of a 2nd tranche of Pilot Plant equipment – including reactors, tanks, filters, pumps and spirals.
The Pilot Plant will inform Broken Hill Cobalt Project (BHCP) Feasibility Studies as well as supply cobalt product samples to the COB global sample partner program.
The Pilot Plant will be modular and will be sized upwards to a Demonstration Plant (1:1,000 to full commercial size) by Q3 2021.

Side note: In our local fish wrapper Saturday I was reminded again that this project has been marked as "significant" by the NSW govt.
 
Craton said:
From 24 Aug 2020 announcement reads in part:

Pilot Plant Update – 2nd Delivery of Major Equipment Received
KEY POINTS:
Major items of equipment continue to arrive at our Broken Hill plant site. COB has taken delivery of a 2nd tranche of Pilot Plant equipment – including reactors, tanks, filters, pumps and spirals.
The Pilot Plant will inform Broken Hill Cobalt Project (BHCP) Feasibility Studies as well as supply cobalt product samples to the COB global sample partner program.
The Pilot Plant will be modular and will be sized upwards to a Demonstration Plant (1:1,000 to full commercial size) by Q3 2021.

Side note: In our local fish wrapper Saturday I was reminded again that this project has been marked as "significant" by the NSW govt.
Click to expand...
Interesting https://www.asx.com.au/asxpdf/20200910/pdf/44mjbmyj5j62mk.pdf
 
Miner, I don't have the details to hand but I think that coincides with the SPP ending 31 Aug 2020.
 
From 21 Dec 2020

BHCP Pilot Plant
Following successful development of the COB Process Technology at the laboratory scale, COB is building a Pilot Plant to test the
process on a continuous basis. The throughput rates are nominally 1-2 t per hour for the concentrator circuit and 100-150 kg per
hour for the leaching circuit. COB will process up to 90 t of ore (RC Chips) through the plant, using existing samples collected in
previous drilling campaigns.
The Pilot Plant will allow COB to produce varying specifications of cobalt products (including mixed hydroxides and sulphates) and
represents a significant milestone for our business. Our commercial aim is to make battery ready cobalt sulphate from this facility on
a scale sufficient to provide test samples (~10 kgs) for global commercial partners.
The Pilot Plant data will be used to define a larger Demonstration Plant activity scheduled for 2H 2021. The Demonstration Plant
will include all unit operations for the proposed BHCP at nominally a 1:500 to 1:1000 scale. The Demonstration Plant will focus on
calcining cobalt-pyrite concentrate for production of sulphur, and an integrated hydrometallurgical circuit for leaching calcine and
recovery of cobalt and sulphur.
The data collected from operations will be used in the BHCP Feasibility Study to confirm the process recoveries of cobalt and
sulphur. As part of these activities, larger sample cobalt and sulphur products will be generated for commercial assessment.
COB is currently working with 15 global partners who have expressed interest in receiving cobalt samples, with a view to qualifying
COB as a supplier to the global battery industry. To date LG International, Mitsubishi Corporation and Sojitz Corporation have
become named partners. The battery industry is investing approximately US$200Bn (source: Benchmark Mineral Intelligence -
2020) with 160 global manufacturing facilities (“Giga Factories”) identified to date. This is a very exciting period for our business.

Disclaimer.
Yes, I hold this stock.
 
signs of life for COB.... It is still there on my Cobalt watchlist, (one of three remaining after three years; others are AML and AUZ). But the big story must still be: Will Cobalt be an integral part of battery composition?

COB Three year chart; weekly
1609295476930.png
 
Dona Ferentes said:
signs of life for COB.... It is still there on my Cobalt watchlist, (one of three remaining after three years; others are AML and AUZ). But the big story must still be: Will Cobalt be an integral part of battery composition?

COB Three year chart; weekly
Click to expand...


and now, 34c. No news . Speeding ticket.
 
The company today advised that it was “not aware of any explanation for the price change and increase in volume in the securities of Cobalt Blue, other than as referred to in previous ASX announcements”.

However, COB noted there were a number of factors that could explain investor interest in Cobalt Blue securities:
  • The company said that cobalt was a critical ingredient for high-performance lithium-ion batteries, which in turn are used globally to power electric vehicles (EV) and energy storage systems (ESS).
  • As many countries move towards clean energy, more subsidies on EV vehicles are being rolled out. These are significant, effectively subsidising between 20% to 35% of the purchase price of EVs in the European Union, for example ... and turning the bloc into the largest global market in EV.
  • The company also said that the upcoming Biden Clean Energy plan in the United States includes a US$400 billion investment supporting the roll out of 25 million EVs, which will be another tailwind for the company.
  • In addition, the cobalt market has increased significantly from US$12/lb in April 2020, to more than US$19/lb at this time. It believes the cobalt price is on track to retrace its four-year longer term average price of US$25/lb.
  • And finally, Cobalt Blue says that its Broken Hill based Pilot Plant is on track to operate from February 2021, as already announced to the market on 21 December 2020.
1610403952721.png
 
whoosh-ka. Someone is keen.

1610941670701.png


Speeding ticket on 11/01... pause
Chairman's address on 13/01...
Looking forward, we expect to deliver significant developmental updates shortly. These updates will include details of the calcination of approximately seven tonnes of BHCP concentrate, from which we will produce feedstock for the Pilot Plant. In parallel, the Pilot Plant is being finalised, and remains on track for commissioning during February with first product shortly after. We have begun local hiring of plant personnel and look forward to continuing our long and fruitful relationship with the Broken Hill community. The Pilot Plant will supply both MHP and cobalt sulphate test samples for commercial partners.
Click to expand...
The sample programme (ranging from 100 to 200 kgs and from 2 to 3 tonnes for the later Demonstration Plant) is, from COB’s knowledge, one of the largest undertaken within the global cobalt market, where typical project testwork normally ranges from 1–20 kgs. The facility will prove up the processing technology that COB has developed and de-risk the project for future investors
Click to expand...
 
KEY POINTS
  • Cobalt Blue Holdings (ASX:COB) is pleased to announce its wholly owned subsidiary, Broken Hill Cobalt Project Pty Ltd, has received notice of the proposed grant of Exploration Licence Application 6151 (‘ELA6151’).
  • The tenement application comprises approximately 67 km² with COB’s strategic exploration footprint in the Broken Hill region increasing by some 70%.
  • Advanced exploration targeting reinforces long term exploration opportunity for the Broken Hill Cobalt Project.
interest renewed. ... need a lot of ground, it would seem.

1612755728454.png
 
From 11th Feb 2021 ASX announcement

Pilot Trial – Calcine test work underway

KEY POINTS
Pilot Trial scale treatment of pyrite concentrate commenced. Calcine product to be processed for cobalt recovery in COB’s Pilot Plant at Broken Hill.

COB Pilot Plant construction well advanced.

Pilot Plant commissioning on schedule for late February, with subsequent samples to be sent to prospective partners as part COB’s global Cobalt Sample Program.

COB’s CEO Joe Kaderavek, said:

“With calcine testwork to be completed shortly, our Pilot Plant on target, and the
global cobalt market tightening nicely, we expect our Cobalt Sample Program to
generate significant global attention.”
 
Received an invite to attend a viewing of COB's Pilot Plant demonstration mid next month. Will no doubt find out more on the day however the cobalt supply/demand and the use of cobalt in battteries (EVs etc) will be the big factors on the SP.

Disclaimer. Obtained a holding from the BPL spin-off a few years ago.
 
Bah, couldn't get out to the pilot plant demo yesterday due to work but note that there is an announcement re. same dated 17th May 2021.
 
One thing I did note on the COB website is that the company is touting a "green energy technology" focus. Will this translate to the big ethical investors coming on board?
I suspect they are already taking nibbles.
 

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