COB - Cobalt Blue Holdings

[Craton]

From COB website:

Broken Hill Cobalt Project​

This project is unique, globally, for very important reasons. We have an enormous deposit of cobalt in pyrite at Broken Hill, which is extremely rare, anywhere in the world. What’s more, Cobalt Blue has created the world’s first process that can extract the cobalt and create a commercial, battery-ready product on site.

Yes, I hold a few parcels.

 

[Tropico]

Well up (<20%) on todays announcement.
Even made ABC News:

Cobalt Blue's $560m Broken Hill mining project receives 'major project status'

Cobalt Blue receives "major project status" from the federal government for its plans to produce almost 17,000 tonnes of high quality cobalt sulphate a year near Broken Hill.

www.abc.net.au

High at a minor resistance and closed at minor support.

https://invst.ly/xjjc9

 

[Craton]

Cracked a 100 cents. As of 4th of Apr 2022, finished up 7.85% at a buck and three cents.

 

[JohnDe]

The ultimate prize is the cobalt that will be extracted from the rock. For decades unloved, cobalt is now at the heart of the green economy. It is an essential component of batteries in phones, laptops and electric cars, which are now the biggest source of demand. The authors of an imf paper published last year predicted that consumption of cobalt could increase six-fold by 2050

An investment opportunity, or 'pie in the sky'?

Cobalt has become a necessity for battery production, previously, a relatively ignored mineral with low profit and ignored by the major miners. This allowed poor workers in third word countries to dig out a niche and supply the world. It also upend up the market to unscrupulous miners and local leaders, paying the poor and children a pittance to mine Cobalt in dangerous environments.

And then there was a seismic change. Ethics, ethical financing, Covid, China, EV's and battery storage popped up. Cobalt is now deemed as a major part of the electrification and decarbonizing of the world, but companies do not want to be associated with child labour, environmentally and dangerous mining practices, or reliant on China.

Can Australia supply large quantities of Cobalt?
What fluctuations in Cobalt pricing will we see as more miners come on board and clean up their act.

How the world depends on small cobalt miners
The metal is key to the global energy transition. But its artisanal market is broken

Part of the reason why the lot of small-scale miners has not improved is because of the way they are pushed to the margins of the industry. In Congo artisanal mining is meant to be confined to dedicated sites. In practice, it is tacitly allowed on parts of the huge industrial mines in Kolwezi. Though some sites have been dug for decades, miners are vulnerable. In 2019 the army evicted 5,000-8,000 miners from the Tenke Fungurume Mine which is owned by China Molybdenum. Still, people returned to the mine, roughly 100km from Kolwezi, even in the face of violence. “Security is chasing us, beating us, breaking our basins,” says Generose Yandaya, who washes rocks to support her orphaned grandchildren. “I want them to go to school. The problem is there is no money and mining is the only job.”

Cobalt Blue is big news in the cobalt world – it is the only large-scale, non-African, greenfield (that is, new) primary cobalt project in the world. In fact, the company describes itself as “the only pure-play cobalt producer in the listed world,” because virtually every other listed cobalt company produces cobalt as a by-product of nickel or copper mining. Cobalt Blue’s Broken Hill Cobalt Project (BHCP) will have cobalt as its only product.

The BHCP has been granted Major Project Status from the federal government. If everything goes according to plan, the BHCP could come onstream in 2025, and produce more than 3,500 tonnes of cobalt metal a year, over 20 years. BHCP has a projected all-in sustaining cost an all-in sustaining cost (AISC) – a figure that incorporates not only the “cash cost” of production but all the costs that allow production to be sustained – of US$12 a pound. At present cobalt prices at more than $US37 a pound, which would give the project very healthy margins – in fact, it would make money at historically low cobalt prices.

This year, Cobalt Blue is focusing on running its demonstration plant and delivering large-scale samples to potential offtake partners. It says its potential customers want to engage in longer-duration offtake agreements of up to about eight years, to support their EV production runs. COB says “non-African sustainably sourced cobalt” is becoming a premium material, as EV makers react to their consumer and legislative requirements, and seek to influence upstream sourcing. The company hopes to finalise all project approvals and a bankable feasibility study (BFS will be finalised by the end of this year, ready for a final investment decision (FID) on the project by the end of the first quarter of 2023.)

COB has doubled in a year, and the only analyst following the stock sees it as having run past fair value. But the BHCP is a very interesting project.

 

[JohnDe]

Thanks for moving. I did a search for Cobalt and COB and nothing came up.

 

[Craton]

Thanks for moving. I did a search for Cobalt and COB and nothing came up.

In the Search function, did you use the "Search titles only" option?
Thanks to @Joe Blow for reminding me of this tip some time ago. Typing COB and selecting the Search titles only option brings up:

COB - Cobalt Blue Holdings​

 

[Joe Blow]

I won't take this thread off topic but I will just briefly expand upon @Craton's post.

If you are looking for a word or ASX code in a thread title, then always check the "Search Titles Only" box.

If you are looking for where a word, phrase or ASX code is mentioned in individual posts then don't check that box.

I do "Title Only" searches about 99% of the time because I am almost always looking for specific threads.

 

[JohnDe]

In the Search function, did you use the "Search titles only" option?
Thanks to @Joe Blow for reminding me of this tip some time ago. Typing COB and selecting the Search titles only option brings up:

COB - Cobalt Blue Holdings​

Thanks for the tip ?

 

[Tropico]

COB still looks like it is in an uptrend despite the pullback over the last couple of weeks. Hopefully it has found support now and the trend will continue.
Upside: 0.85, 0.95 and >1.00.
Downside: 0.70 and <0.57.

 

[Craton]

Going with the upside theory hence my Oct 2022 Stock Tipping Comp tip.

 

[Craton]

Sticking with COB for the Nov 2022 tipping comp.

Demonstration Plant: Concentrator Circuit Update - Phase One Complete​

The concentrator circuit has now completed testwork on 500 t of ore with a further 2,500 – 3,000 t of ore to be finalised shortly.​

The circuit has upgraded cobalt in ore to ~4,300 ppm in concentrate (with 75% mass rejection) – representing an ~5x upgrade. The Kiln circuit has now been commissioned, with leach and MHP production circuits to follow shortly.

 

[Craton]

COB is again also in my 2023 FY stock tips.

Cobalt: The miracle metal.

Cobalt Blue is about to become one of the world’s largest ethical suppliers of cobalt, a battery-ready product, for use in utility-scale renewable energy storage, for thousands of home energy storage systems, and millions of electric vehicles.

 

[frugal.rock]

COB trying to put in a bottom.
Up 13.6% or 3 cent today.

 

[Dona Ferentes]

COB trying to put in a bottom.

well and truly established ... 20 per cent today, no news

 

[Country Lad]

Broke out from my favourite P&F pattern (black magic to most here) on Monday so bought next day. Quite some momentum today. Let's see if it goes on with it in the medium term.