Cobalt Miners News For The Month Of September 2019

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Welcome to the September 2019 cobalt miner news. The past month saw cobalt prices recover strongly, and a quieter month for news flow.

Cobalt price news

As of September 18, the cobalt spot price was US$16.56/lb, up significantly from US14.29/lb last month. The LME cobalt price is US$36,500/tonne. LME Cobalt inventory was 834 tonnes, about the same from last month. 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 – USD16.56

1 Year Cobalt Prices - Cobalt Price Chart

Source: InfoMine.com

Cobalt demand and supply

On August 28 Mining Review reported:

Global cobalt mine supply at risk of disappearing. According to Benedikt Sobotka, CEO of Eurasian Resources Group (ERG)….At the current price, between 20-30% of global cobalt mine supply is at risk of disappearing in 2020…..He adds that in order to regain lost supply in the short-term, a sustained price in excess of $15 per pound is needed. In the long-term, $20 per pound and above is required to attract much-needed capital to the industry. With more than 18 million new energy vehicles forecast to be produced globally over the next three years, it is forecast that there will be an almost two-fold increase in cobalt demand by 2025.

On September 20 Stockhead reported:

Benchmark forecasts stronger cobalt prices going into 2020…..The battered cobalt market could return to balance in 2021 — a lot earlier than expected — following well publicised production cuts by global major Glencore……“In 2020 we think the market will be supplied from ongoing production and stockpiles, but from 2021 onwards there is a question about how well supplied the market will be,” Rawles says.

Source: Bloomberg New Energy Finance

Cobalt market news

On September 10, Reuters reported:

Electric car boom to turbocharge battery metal producers: Moody’s. Demand for metals used in battery electric vehicles could rise sixfold if electric cars reach 8% of road traffic by the mid-2020s, delivering huge dividends for producing countries like Democratic Republic of Congo, Moody’s said on Tuesday. The credit ratings agency said a worldwide shift to electric vehicles would likely drive up demand for cobalt, of which DRC is the world’s number one producer, as well as lithium, nickel and copper.

On September 12, Africa Confidential reported:

The China Price. Facing corruption probes and resource nationalism, Western mining companies are quitting the Copperbelt. Producing 70% of the world’s cobalt, an essential component of electric car batteries and mobile phones, Africa’s Copperbelt is in the midst of a sweeping transformation. Seeking to expand their access to the metal, China’s mining companies are eyeing the potential sale of assets such as Vedanta’s Konkola Copper Mines [KCM] in Zambia and Glencore’s mothballed Mutanda mine in Congo-Kinshasa. Buying up those assets and consolidating political ties with Lusaka and Kinshasa would enable China’s companies to extend their control of supply chains in the high-tech sector and reshape the region’s mining sector at the same time…..Eurasian Resources Group (ERG) has signalled its intention to sell its Frontier copper mine and other assets in Congo-K following a drop in value due to the mining code and a dip in commodity prices. Several Chinese suitors are queuing up……Glencore’s Zambian mine Mopani may also be ready for the auction block. Some industry insiders say Glencore’s two majority-owned Congo-K companies, Mutanda and Toronto-listed Katanga Mining, which operates the Kamoto Copper Project, are also being prepared for sale.

On September 19 Reuters reported:

Exclusive: London Metal Exchange to delay ban on tainted metal until 2025 – sources. The London Metal Exchange (LME) will postpone plans to ban metal tainted by human rights abuses until 2025, giving producers three more years to comply with guidelines and the exchange time to rethink its approach, industry sources said.

Cobalt company news

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

On September 5, Glencore announced: “Notice to holders of the U.S.$625 million non-dilutive cash-Settled Guaranteed Convertible Bonds due 2025 issued by Glencore Funding LLC [the “Bonds”, ISIN: XS1799614232].”

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

No significant news for the month.

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

On August 27, China Molybdenum announced: “Interim results announcement for the six months ended 30 June 2019.” Highlights include:

  • “Operating revenue amounted to RMB9.979 billion, a decrease of 29.03% year on year, and an increase of 22.83% as compared with the first quarter of 2019; net profit amounted to RMB773 million, a decrease of 78.52% year on year, and an increase of 102.65% as compared with the first quarter of 2019…..
  • Net cash inflow from operating activities amounted to RMB2.230 billion, and total EBITDA amounted to RMB3.6 billion, the balance of cash and bank exceeded RMB24.2 billion; gearing ratio was 51.87%; Despite the cyclical fluctuations of the market, the Company maintained strong cash flow generation ability and relatively stable asset liability structure.
  • ……During the reporting period, the Company’s capital expenditure amounted to RMB1.077 billion, representing a year-on-year increase of 18.53%.”

On September 5 China Molybdenum announced: “Interim Report 2019.” Include in the 162 page report was China Moly’s market review and outlook. On cobalt the Company stated:

Lower prices through the first half of the year were related to a supply imbalance and destocking by metal producers although there was significant restocking of the supply chain and a subsequent price rebound at the end of the first quarter before further downward market softening at the end of the June. The market continues to be dominated by supply dynamics in the intermediate cobalt chemical market as well as overall demand by the up and coming EV and HEV markets. Changes to the Chinese electric vehicle subsidy policy and other general delays in the role out of the auto industry’s EV programs are reducing near term demand through the supply chain including the demand for metal.

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.

No news for the month.

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

No news for the month.

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

On September 5, Sumitomo Metal Mining Co. announced:

Receipt of the fy 2019 national mining society award by Sierra Gorda S.C.M. in the Republic of Chile Sierra Gorda S.C.M. (SGSCM, Headquarters: Santiago, Republic of Chile), in which KGHM Polska Miedź S.A., Sumitomo Metal Mining Co., Ltd. and Sumitomo Corporation have an interest, was given the FY2019 National Mining Society Award by the Sociedad Nacional de Mineria [SONAMI], the Chilean mining industry association.

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

No significant news for the month.

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

No news for the month.

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 September 6, RNC Minerals announced:

RNC Minerals announces August gold production of 8,104 ounces and update to bought deal financing…..Paul Andre Huet, Chairman & CEO, commented: “August gold production of 8,104 ounces is further evidence of a strong start to the second half of the year, with total July-August production of 15,977 ounces.

Upcoming catalysts include:

  • 2019 – Gold & Nickel production results for Beta Hunt. 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 August 26, Jervois Mining announced:

Jervois Mining commences trading on OTCQB in the US. Jervois Mining Limited is pleased to announce its shares are now listed for trading on the OTCQB Venture Market in the United States under the symbol JRVMF.

On September 2, Jervois Mining announced:

Jervois announces expiration of its royalty sale agreement with Franco Nevada. Jervois Mining Limited announces that its sale agreement with Franco Nevada for the A$3.6 million cash sale of its remaining royalties to Franco Nevada has expired without the sale closing.

On September 9, Jervois Mining announced: “Jervois Mining receives rock chip results from Kilembe Area, Uganda.” Highlights include:

  • “Detailed soil grid completed and all results received over Cu-Au mineralization within Kilembe area (2,265 soil and 441 rock chip samples). Cu-Au mineralization discovered has strike length over 1.7km along parallel structures identified from ground geophysics and is open to SW and NE.
  • 43 rock chip samples contain greater than 0.75 grams per tonne gold (“g/t Au”), including 17 samples with greater than 5.03 g/t Au and 7 samples with greater than 10.45 g/t Au (up to 18.15 g/t Au). As well, 25 rock chip samples contain greater than 0.11 percent copper (“% Cu”), including 11 samples greater than 1.46 % Cu (up to 37.8% Cu).
  • From soil samples, 621 contain greater than 11 parts per billion gold (“ppb Au”). Samples range up to 2.76 g/t Au, including 30 samples with greater than 51 ppb Au and 7 samples with greater than 0.2 g/t Au.
  • Jervois Board has approved US$1.5 million Ugandan exploration programme in Q4 2019, including US$0.9 million for initial drilling in Kilembe at the Senator, Eagle and Bond Cu-Au showings, and US$0.6 million for further drilling at Bujagali.
  • Initial drilling has concluded at Bujagali, which targeted copper and cobalt anomalies.”

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] (OTCQX:FTMDF)

On August 26, Fortune Minerals announced:

Northwest Territories Government holds ground breaking ceremony for Tlicho all-season road to Whati. Construction of the road expected to start in September and open for public use in 2022.

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.

No significant news for the month.

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)

No news for the month.

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 September 3, Ardea Resources announced:

Lewis Ponds resource update. A new JORC 2012 Mineral Resource for the Volcanic hosted massive sulphide [VHMS] Lewis Ponds Project comprises Indicated and Inferred Mineral Resources. Total resource is: 20.24 Mt at 0.5g/t Au, 33.3g/t Ag, 1.5% Zn, 0.7% Pb, and 0.1% Cu. Total contained metal is over 326,000 oz gold, 21.6 million oz silver, 290,000 t zinc and 135,000 t lead.

Updated Lewis Ponds Resource estimate

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 September 2, Cobalt Blue Holdings announced:

Update on progress with independent expert determination. Cobalt Blue Holdings Limited and Broken Hill Prospecting Limited have been advised by the Independent Expert that he has yet to complete his determination on the Thackaringa Joint Venture dispute. COB will update the market when it has received and considered the determination.

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:

  • Soon – Expert and a final determination to the COB/BPL feud.
  • 2019 – Optimisation improvements on the PFS, drill results.
  • ~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 September 16, Aeon Metals announced: “Marley zone drilling update.” Highlights include:

  • “Further assay results confirm significant mineralised intervals and continuity within the Marley Resource area.
  • Recent new intersections include: WFDH443:19m @ 1.67% Cu and 0.25% Co from 179m. WFDH446:10m @ 1.18% Cu and 0.10% Co from 194m WFDH453: 17m @ 1.39% Cu and 0.12% Co from 176m.”

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)

On August 26, First Cobalt announced: “Glencore and First Cobalt sign definitive agreement.” Highlights include:

  • “US$5 million loan from Glencore will assess the suitability of the First Cobalt Refinery to treat Glencore material under a long-term supply agreement to produce cobalt sulfate for the North American electric vehicle market.
  • Phase 2 of the work plan envisions a recommissioning of the Refinery at 12 tpd in late 2020 and Phase 3 is an expansion to 55 tpd in 2021 using the existing site buildings and infrastructure.
  • An Ausenco scoping study previously estimated that if the First Cobalt Refinery operated at 55 tpd, it could produce 5,000 tonnes per annum of contained cobalt in sulfate assuming cobalt hydroxide feed grading 30% cobalt.
  • First Cobalt is concluding a RFP process for the feasibility study, metallurgy and environmental work with a view to commencing field work in September.”

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 31, Havilah Resources announced: “Quarterly Report-1 May 2019-31 July 2019.” Highlights include:

  • “Funding of up to $100.000 million secured, subject to shareholder approval, from GFG Alliance for work programs on Havilah’s Mutooroo Copper-Cobalt District and iron ore assets.
  • Release of positive Kalkaroo PFS project economics supporting a large scale open pit copper-gold mine.
  • Kalkaroo MLs and MPLs granted by the Department for Energy and Mining
  • Kalkaroo PFS supplementary metallurgical program has several positive outcomes including improved gold recoveries in saprolite ore.
  • High resolution airborne EM survey completed over Mutooroo area.
  • 488m iron ore intersection confirmed in Grants Basin diamond drill hole.
  • $4.000 million received from CMC in accordance with the revised terms of the North Portia Divestment.”

On September 12, Havilah Resources announced:

Results of extraordinary General Meeting. Havilah Resources Limited advises that the resolution for the approval of the proposed investment in Havilah of up to $100 million (Proposed Transaction) by OneSteel Manufacturing Pty Ltd [SIMEC], a member of the GFG Alliance (together GFG), has not been passed by shareholders at the Extraordinary General Meeting [EGM].

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 cobalt related news for the month but you can read the Company’s “Financial report 2019” here.

Investors can read a company investor presentation here.

Castillo Copper [ASX:CCZ]

On August 26, Castillo Copper announced:

Enforceable undertaking accepted: exploration and trading to resume. Castillo Copper Limited (CCZ or the Company) is pleased to announce the enforceable undertaking agreement [EUA] with the NSW Resources Regulator [NSWRR] has been accepted, paving the way for a resumption in exploration activities and trading in CCZ shares following the completion of the capital raising of up to £300,000 (circa A$537,000) announced on 9 August 2019.

On August 29, Castillo Copper announced: “Geological review identifies potential mineralisation extending from producing mine into Mkushi project.” Highlights include:

  • CCZ’s independent geologist–conducting a review on the acquisition of five Zambia assets–indicates that the mineralised structure extends along strike into the priority Mkushi project from Shi & Yan Group’s3 [SYG] Munshiwenba Copper Mine [MCM]: A key finding is contiguous geological structures that host copper mineralisation along the same south-west trending shear zone between the Mkushi project and southern part of SYG’s 55km2 mining lease where MCM is situated. SYG commenced mining operations in 2018, while earlier work from the previous owner in 2011 confirmed a non-JORC compliant resource at 31.6Mt @ 0.62% Cu1,4 – calculated by Snowden Group5 based on an extensive drill-hole database. Overall, the Mkushi project has the potential to deliver significant exploration upside and step up targets to aid expediting an inaugural drilling program.
  • The Board will keep shareholders informed of developments in Zambia and the two Australian pillars (Cangai Copper Mine & Mt Oxide project) as they materialise.”

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 August 28, Cassini Resources announced: “West Musgrave–Pre-feasibility study progress update.” Highlights include:

  • “Pre-feasibility study assessing a 10 Mtpa scenario aligned to the further Scoping Study with an extended mine life.
  • Original Pre-feasibility Study timeline extended for detailed evaluation of a range of potential value-add opportunities.
  • Further update and maiden Ore Reserve planned for release early 2020.”

Investors can read the latest company presentation here.

Upcoming catalysts include:

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 August 30, Nzuri Copper announced:

Scheme of arrangement-update on permit transfer condition. 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.

On September 2, Nzuri Copper announced:

Scheme of arrangement–PRC regulatory approvals. The Scheme remains subject to the satisfaction of a number of conditions precedent. One of the remaining conditions is the receipt by Xuchen of certain regulatory approvals in the People’s Republic of China.

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.

No cobalt related news for the month.

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 September 9, Barra Resources Ltd. announced: “Mt Thirsty resource upgrade…..The change equates to a 4.7% increase in contained metal.

Mt Thirsty Resource upgrade

Source: ASX.com

Investors can view the company presentations here.

Cruz Cobalt [CUZ] (OTCPK:BKTPF)

No news for the month.

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

No significant cobalt news for the month.

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

Alloy Resources [ASX:AYR]

On August 26, Alloy Resources announced: “Horse Well JV revised gold mineral resources now over 250,000 ounces.”

On September 3, Alloy Resources announced:

Horse Well JV gold targets for growth and development…..High-grade shoot targets identified under 1km long Warmblood-Filly SW corridoor. Mineralisation open beneath such intercepts as: 7m @ 7.79 g/t, 12.6m @ 6.75 g/t and 7m @ 22.49 g/t Au. Palomino high-grade shoot inadequately tested at depth, beneath best intercepts of: 4m @ 10.85 g/t, 4m @ 12.49 g/t Au.

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 August 28, Cobalt 27 Capita Corp. announced:

Leading independent proxy advisory firm, ISS, recommends that Cobalt 27 shareholders vote for the plan of arrangement with Pala investments.

On September 9, Cobalt 27 Capita Corp. announced:

Cobalt 27 announces 2019 Q2 production update for Ramu nickel-cobalt operation. Cobalt 27 Capital Corp., is pleased to announce quarterly production results from its 8.56% direct equity interest in the world class Ramu integrated nickel and cobalt operation (“Ramu”). In the quarter ending June 30, 2019 Ramu produced 22,490 tonnes of mixed hydroxide product (“MHP”) containing 8,767 tonnes of Ni and 793 tonnes of Co. Year to date production at Ramu is 16,430 tonnes of contained nickel and 1,497 tonnes of contained cobalt. “The Ramu operation continues to demonstrate that it is a top tier nickel asset. Cash costs continue to be in the bottom quartile with annual production consistently at or above design capacity. Production remains on track to produce 34,000 tonnes of Ni and 3,300 tonnes of Co in 2019. With nickel prices now trading around $8.00 per pound, Ramu is generating significant free cash flow which will enable the Company’s attributable 8.56% share to be used to repay its debt.” commented Anthony Milewski, Chairman and Chief Executive Officer of Cobalt 27.

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 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), 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: 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

September saw a significant rise in cobalt prices.

Highlights for the month were:

  • ERG: “At the current price, between 20-30% of global cobalt mine supply is at risk of disappearing in 2020” Global cobalt mine supply at risk of disappearing, needs a sustained price above US$15/lb, and US$20/lb to encourage new miners.
  • Benchmark Mineral Intelligence – The battered cobalt market could return to balance in 2021 — a lot earlier than expected.
  • Moody’s – “Demand for metals used in battery electric vehicles could rise sixfold if electric cars reach 8% of road traffic by the mid-2020s.”
  • Facing corruption probes and resource nationalism, Western mining companies are quitting the Copperbelt (including the DRC).
  • London Metal Exchange to delay ban on tainted metal until 2025 – sources.
  • China Molybdenum reports “net profit amounted to RMB773 million, a decrease of 78.52% year on year, and an increase of 102.65% as compared with the first quarter of 2019.” China Moly sees lower short term demand for cobalt due to changes to the Chinese electric vehicle subsidy policy and delays to auto industry’s EV programs.
  • Ardea Resources spin off (Godolphin Resources) – Lewis Ponds Resource update – Total contained metal is over 326,000 oz gold, 21.6 million oz silver, 290,000 t zinc and 135,000 t lead.
  • First Cobalt – US$5 million loan from Glencore will assess the suitability of the First Cobalt Refinery to treat Glencore material under a long-term supply agreement to produce cobalt sulfate for the North American electric vehicle market.
  • The Havilah- GFG Alliance $A100m deal was not approved by shareholders.
  • Castillo Copper enforceable undertaking accepted and recommencing trading.
  • Barra Resources Resource Update at Mt Thirsty – The change equates to a 4.7% increase in contained metal.
  • Alloy Resources – Horse Well JV revised gold mineral resources now over 250,000 ounces.

As usual all comments are welcome.

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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.

Editor’s Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these stocks.



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