Robust electrical automobile (EV) gross sales have been driving up demand for key battery uncooked supplies in recent times. EVs require lithium-ion batteries to run, and every battery might comprise as much as 15 kilograms of cobalt.
Which means that as demand for EVs will increase, so too will demand for cobalt — and, as one of many high 4 cobalt-producing nations on the earth, Australia finds itself able to capitalise on this demand.
About 74 % of world cobalt output comes from the Democratic Republic of Congo (DRC). Nevertheless, Australia is proving to be a strong contender; although it’s only liable for 2 % of the world’s cobalt manufacturing, it holds about 15.5 % of world reserves. Furthermore, whereas the DRC’s labour and mining practices have typically been labeled unethical and unsustainable, Australian miners are targeted on safer, extra environmentally pleasant practices.
Whereas cobalt costs have not recovered from their fall in early 2023, EV demand is anticipated to be robust in the long run.
Relating to getting publicity to the Australian market, giant gamers could also be a superb place to start out. Learn on for a take a look at the most important cobalt shares on the ASX sorted by market cap. All market cap and share worth information was obtained on October 7, 2024, utilizing TradingView’s inventory screener.
Market cap: AU$74.88 million
Share worth: AU$0.45
Ardea Assets’ major focus is growing its wholly owned Kalgoorlie nickel undertaking, which the corporate says “hosts the most important nickel-cobalt useful resource within the developed world.” Positioned in Western Australia, the undertaking contains the Goongarrie Hub deposit.
A 2023 prefeasibility examine reveals that the Goongarrie Hub has an ore reserve of 194.1 million tonnes at 0.05 % cobalt and 0.7 % nickel, leading to 99,000 tonnes of contained cobalt and 1.36 million tonnes of contained nickel. The examine signifies that this useful resource would help an open-pit mining operation with a 40 yr mine life and annual output of two,000 tonnes of cobalt and 30,000 tonnes of nickel.
In late March, the corporate shared {that a} detailed hydrogeology drilling program had commenced to quantify long-term water provide.
Ardea is now engaged on a definitive feasibility examine (DFS), with funding from its strategic companions Sumitomo Steel Mining Co. (TSE:5713) and Mitsubishi (TSE:8058). The DFS is slated for completion within the second half of 2025.
2. Cobalt Blue Holdings (ASX:COB)
Market cap: AU$37.6 million
Share worth: AU$0.086
Cobalt Blue Holdings focuses solely on cobalt and is enthusiastic in regards to the metallic’s moral and environmental potential inside the renewable power market. The corporate owns the New South Wales-based Damaged Hill undertaking, a cobalt asset that it says adheres to Australian labour and sustainability requirements, and is planning the Kwinana cobalt-nickel refinery.
In November 2023, Cobalt Blue launched the outcomes of its cobalt-nickel refinery examine. Throughout Stage 1, the proposed refinery would course of third-party feedstock and have a capability of three,000 tonnes of cobalt sulphate per yr, together with 1,000 tonnes of nickel sulphate yearly. Stage 2 would have the choice to incorporate potential feedstock from Damaged Hill. The examine initiatives secure margins all through potential cobalt worth fluctuations.
A number of days later, the corporate introduced that its potential associate for the refinery is Iwatani (TSE:8088), a battery minerals dealer. Based on Cobalt Blue, if every part goes by way of as deliberate, the refinery shall be constructed on Iwatani’s property in Western Australia’s Kwinana industrial space.
Cobalt Blue offered one other replace on the refinery in early October, reporting that development is about to start within the first half of 2025, with completion anticipated inside 12 months.
Market cap: AU$35.14 million
Share worth: AU$0.013
Jervois World is targeted on producing battery minerals, with a particular emphasis on cobalt. Jervois boasts operations worldwide and hopes to develop into the one cobalt miner within the US at its Idaho Cobalt Operation (ICO).
In mid-2023, the corporate gained US$15 million from the US Division of Protection (DoD) to fund drilling at ICO in addition to a bankable feasibility examine for development of a US cobalt refinery. Useful resource drilling started on the Sunshine deposit on the ICO undertaking shortly after, whereas work on a bankable feasibility examine for the cobalt refinery was launched final October.
DoD-funded resource-extension drilling on the RAM deposit kicked off in March of this yr. The next month, Jervois accomplished its maiden JORC-compliant useful resource estimate for the Sunshine deposit as a part of its deliverables underneath the DoD funding settlement.
The deposit hosts inferred sources of 520,000 tonnes at 0.5 % cobalt, 0.68 % copper and 0.49 grams per tonne gold at a cut-off-grade of 0.25 % cobalt, for five.75 million kilos of contained cobalt.
In June, Jervois inked a memorandum of understanding with present buyer World Tungsten & Powders to judge the latter probably making a minority fairness funding in Jervois’ proposed US cobalt refinery.
Market cap: AU$13.88 million
Share worth: AU$0.155
Norway-focused Kuniko is focusing on three metals key for the EV trade: cobalt, nickel and copper. Nearly all of its property are in Norway, together with its Skuterud cobalt undertaking, Undal-Nyberget copper undertaking and Ringerike battery metals undertaking. Ringerike hosts the past-producing Ertelien nickel-copper-cobalt goal.
In its quarterly report for September 2023, Kuniko highlighted important developments, together with an funding of AU$7.8 million by Stellantis (NYSE:STLA), which acquired a 19.99 % curiosity in Kuniko and secured a 35 % offtake for future manufacturing of nickel and cobalt sulphate from Kuniko’s Norwegian initiatives for 9 years.
In April, the corporate launched a maiden useful resource estimate for Ertelien exhibiting 23.3 million tonnes of inferred sources containing 49,700 tonnes of nickel, 37,300 tonnes of copper and three,300 tonnes of cobalt, together with high-grade sulphide sources of 4.59 million tonnes at 0.03 % cobalt and disseminated sulphide sources of 18.68 million tonnes of 0.01 % cobalt.
Kuniko undertook a second part growth drill program over the summer season at Ertelien. “Our goal is to show progress in direction of growing a Voisey Bay type useful resource as a possible new supply of essential battery metals for European industries,” Kuniko CEO Antony Beckmand acknowledged. The assay outcomes have been printed in September, and shall be included into an up to date useful resource estimate to be printed in This fall 2024.
Don’t overlook to observe us @INN_Australia for real-time updates!
Securities Disclosure: I, Melissa Pistilli, at present maintain no direct funding curiosity in any firm talked about on this article.
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