Trend Investing: Cobalt Miners News For The Month Of May 2023

Welcome to the May 2023 cobalt miners news.

The past month saw continued low cobalt prices, but some optimism towards the mid to long-term outlook. It was also reported that Germany plans to dedicate $2.2 billion to secure supply of critical commodities.

Cobalt price news

As of May 24, the cobalt spot price was at US$15.53/lb, flat from US$15.54/lb last month. The LME cobalt price is US$33,985/tonne. LME Cobalt inventory is 96 tonnes, down from the 109 level from last month. More details on cobalt pricing (in particular the more relevant cobalt sulphate), can be found here at Benchmark Mineral Intelligence or Fast Markets MB.

Cobalt spot prices – 5-year chart – USD 15.53 (source)

Mining.com

Cobalt demand vs. supply forecasts

Cobalt supply and demand forecast – Deficits growing from ~2025 (as of April 2022) by Cobalt Blue and Wood Mackenzie (source)

Cobalt Blue and Wood Mackenzie

BMI 2022 forecast for cobalt – Deficits building starting from 2024

BMI

Trend Investing vs. IEA demand forecast for EV metals (Trend Investing) (IEA)

Trend Investing and the IEA

2021 IEA forecast growth in demand for selected minerals from clean energy technologies by scenario, 2040 relative to 2020 – Increases Of Lithium 13x to 42x, Graphite 8x to 25x, Cobalt 6x to 21x, Nickel 7x to 19x, Manganese 3x to 8x, Rare Earths 3x to 7x, And Copper 2x to 3x

IEA

2022 – BMI forecasts we need 330+ new EV metal mines from 2022 to 2035 to meet surging demand – 62 new 5,000tpa cobalt mines (drops to 38 if include recycling).

BMI

Cobalt market news

On April 26 Kitco reported:

Germany to dedicate $2.2 billion to secure supply of critical commodities – report… The goal is to expand access and rely less on China. The raw materials Germany would be interested in securing include copper, cobalt, lithium, silicon, and rare earths. Germany is developing “a raw materials fund to support raw materials projects at home and abroad…”

On May 3 Reuters reported:

US Senator Rubio seeks probe of Ford’s Chinese partnership on nickel plant. U.S. Senator Marcio Rubio on Wednesday asked the Biden administration to investigate Ford Motor Co’s (F.N) plan to partner with PT Vale Indonesia (INCO.JK) and China’s Zhejiang Huayou Cobalt in a $4.5 billion nickel processing plant in Indonesia. Rubio…said the venture threatens U.S. national security and asked the Justice, State, Treasury, Commerce, Homeland Security departments as well as the Securities and Exchange Commission to investigate the plan.

On May 11 Investing News reported:

Cobalt to remain key EV raw material despite substitution threat. The Cobalt Institute’s 2022 market report shows that cobalt will continue to play a key role in the energy transition, with demand doubling by 2030… Last year, demand for cobalt saw a slight increase compared to 2021, rising by 21,000 tonnes to 187,000 tonnes… Cobalt supply reached close to 198,000 tonnes in 2022, up 21 percent year-on-year… All in all, the outlook for cobalt remains strong, with demand expected to double by 2030… “Despite the rising share of lithium-iron-phosphate, cobalt-containing cathode chemistries (nickel-cobalt-manganese, nickel-cobalt-aluminum and lithium-cobalt-oxide) will remain as the preferred technology choice for battery applications – accounting for 59 percent of total cathode demand in 2030,” the report states… Supply is also expected to increase significantly by 2030, jumping from more than 200,000 tonnes this year to about 318,000 tonnes.

On May 22 Fastmarkets reported:

Key takeaways from Cobalt Congress 2023… Oversupply and weak demand across the supply chain has pressured the cobalt metal price over the past 12 months… Fastmarkets’ research analysts forecast cobalt will reach an oversupply of 4,000 tonnes in 2023, with the surplus increasing to 14,000 tonnes in 2024… Nickel cobalt manganese oxide (NCM) looks to remain a popular battery chemistry outside of China amid the growing market share of lithium iron phosphate (LFP) batteries, according to analysts at the conference… Investment needed in cobalt refining capacity… The US has yet to have an operational cobalt refinery, although projects were scheduled to be up and running in the next couple of years. The EU was further forward in that regard, with the EU and Turkey accounting for 9% of global refining capacity… “First and foremost in the cobalt market, the bottleneck is refining”… Market participants expect investment to be incentivized by grants made available from the US via the Inflation Reduction Act (IRA).

Cobalt company news

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

On May 9 Glencore announced: “Glencore and Li-Cycle announce joint study to develop a European recycling hub, repurposing an existing Glencore metallurgical facility to be the largest source of recycled battery grade lithium as well as recycled nickel and cobalt in Europe.” Highlights include:

• “…..”Expected new Hub processing capacity of 50,000 to 70,000 tonnes of black mass input per year.
• Definitive Feasibility Study to commence in mid-2023 and will leverage Li-Cycle’s leading technology and extend first-mover advantage to Europe….”

On May 22 Glencore announced: “Glencore publishes 2022 Sustainability Report.”

CMOC Group Limited [HKSE:3993] [SHE:603993] (OTCPK:CMCLF) (formerly China Molybdenum)

On April 28 Market Screener reported:

CMOC Group Limited reports earnings results for the first quarter ended March 31, 2023. CMOC Group Limited reported earnings results for the first quarter ended March 31, 2023. For the first quarter, the company reported sales was CNY 44,283.52 million compared to CNY 44,524.84 million a year ago. Revenue was CNY 44,283.52 million compared to CNY 44,524.84 million a year ago. Net income was CNY 317.12 million compared to CNY 1,792.06 million a year ago. Basic earnings per share from continuing operations was CNY 0.015 compared to CNY 0.084 a year ago. Diluted earnings per share from continuing operations was CNY 0.015 compared to CNY 0.083 a year ago.

On April 28 Market Screener reported: “CMOC Group’s January to March profit falls 82.3%…”

Zheijiang Huayou Cobalt [SHA:603799]

On April 27 Market Screener reported:

Zhejiang Huayou Cobalt Co., Ltd reports earnings results for the first quarter ended March 31, 2023. Zhejiang Huayou Cobalt Co., Ltd reported earnings results for the first quarter ended March 31, 2023. For the first quarter, the company reported sales was CNY 19,110.27 million compared to CNY 13,211.98 million a year ago. Revenue was CNY 19,110.27 million compared to CNY 13,211.98 million a year ago. Net income was CNY 1,024.1 million compared to CNY 1,206.31 million a year ago. Basic earnings per share from continuing operations was CNY 0.64 compared to CNY 0.76 a year ago. Diluted earnings per share from continuing operations was CNY 0.64 compared to CNY 0.76 a year ago.

On May 4 Market Screener reported: “Huayou Cobalt in talks to form Battery Materials Project with South Korea’s POSCO Future…

Jinchuan Group International Resources [HK:2362]

No news for the month.

Chemaf (subsidiary of Shalina Resources)

No news for the month.

GEM Co Ltd [SHE:002340]

On April 29 GEM Co Ltd announced: “GEM announces results for the first quarter of 2023.” Highlights include:

• “The Company achieved an operating revenue of RMB 6.129 billion, representing a decrease of 12.03% year-on-year. The main reason is that the sales volume of precursors decreased due to the destocking of China’s NEV industry chain and the decline in market demand for 3C electronic consumer products.
• The Company achieved a net profit attributable to shareholder of the listed company of RMB 17.245 million, with a year-on-year decrease of 48.01%, mainly affected by the decline in operating income during the reporting period.
• Power battery recycling has become a new growth point for the Company. In the first quarter of 2023, the company recycled 0.66GWh of power batteries, a year-on-year increase of 65%, achieved sales revenue of RMB 194 million, a year-on-year increase of 149%, and net profit increased by 335% year-on-year. We plan to recycle 35,000 tons of power batteries in 2023 and achieve sales revenue of more than RMB 2 billion.”

Investors can read more about GEM Co in the Trend Investing article: “A Look At GEM Co Ltd – The World’s Largest Battery Recycling Company.”

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)

On April 27 Umicore SA announced:

Umicore update on trading conditions and outlook… Mathias Miedreich, CEO of Umicore commented: “Umicore posted a solid start of the year despite a challenging market environment. We keep a sharp focus on the execution of our 2030 RISE strategy and our efforts have already resulted in additional proof points such as the confirmation of our technology leadership in Automotive Catalysts and the continued ramp-up of high nickel CAM volumes in Rechargeable Battery Materials…

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

On May 10 Sumitomo Metal Mining Co. announced:

FY2023 Capital Expenditure and Total Investment Plans… Sumitomo Metal Mining Co., Ltd. (SMM) plans a total 198.0 billion yen of capital expenditures on a consolidated basis during the fiscal year 2023 (April 1, 2023 – March 31, 2024). The total investment represents a 41% increase from that of FY2022.

On May 10 Sumitomo Metal Mining Co. announced: “Consolidated financial results for the year ended March 31, 2023…”

On May 17 Sumitomo Metal Mining Co. announced: “FY2022 Progress of Business Strategy.”

Profit before Tax Analysis: FY2023 Forecast vs. FY2022 Results (source)

Sumitomo Metal Mining Co.

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

No significant news for the month.

OZ Minerals [ASX:OZL] (OTCPK:OZMLF)

On April 28 OZ Minerals announced: “First quarter report 2023 for the three months ending March 2023.”

On May 2 OZ Minerals announced:

Implementation of Scheme. OZ Minerals is pleased to advise that the scheme of arrangement pursuant to which it was proposed that BHP Lonsdale Investments Pty Ltd (“BHP”), a wholly owned subsidiary of BHP Group Limited (ASX:BHP), would acquire 100% of the shares in OZ Minerals (“Scheme”) has today been implemented. OZ Minerals Shareholders (“OZ Minerals Shareholders”) will today be paid: $1.75 for each OZ Minerals share they held on the Special Dividend Record Date (being 7.00pm (Melbourne time) on Friday, 21 April 2023); and $26.50 for each OZ Minerals share they held on the Scheme Record Date (being 7.00pm (Melbourne time) on Monday, 24 April 2023).

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

On May 10 Sherritt International announced: “Sherritt reports Q1 results and successful implementation of the cobalt swap.” Highlights include:

Selected Q1 2023 Developments

• “Net earnings from continuing operations was $13.6 million, or $0.03 per share in Q1 2023, compared to net earnings from continuing operation of $16.4 million, or $0.04 per share, in Q1 2022…
• In accordance with the Cobalt Swap: The Moa JV distributed 1,280 tonnes (100% basis) of the 2,082 annual maximum volume (61%) of finished cobalt…
• Filed a National Instrument 43-101 technical report for the Moa JV which indicates that current reserves estimates are sufficient to extend the life of mine to 2048 with an after-tax NPV (8%) of US$1.5 billion (100% basis) in the alternative case based on recent analyst nickel, cobalt and input commodity price forecasts.
• Sherritt’s share of finished nickel and cobalt production at the Moa Joint Venture (Moa JV) was 3,483 tonnes and 367 tonnes, 10% and 18% lower, respectively, than the prior year quarter.
• Net direct cash cost (NDCC)(1) was US$6.46/lb in Q1 2023 compared to US$3.42/lb in Q1 2022 primarily due to materially lower realized cobalt prices, placing Sherritt in the second cost quartile for HPAL nickel producers.
• Power production increased 15% to 158 GWh compared to Q1 2022 as a result of additional gas supply…”

Nickel 28 [TSXV:NKL] [GR:3JC] (OTCPK:CONXF)

On May 3 Nickel 28 announced: “Nickel 28 releases Ramu Q1 2023 operating performance and provides update on Shareholder Engagement.” Highlights include:

• “Nickel 28 confirms receipt of largest ever cash distribution from Ramu joint venture of US$9.7 million.
• Concurrent with cash distribution, Nickel 28’s Ramu construction debt reduced by US$18.1 million leaving a balance of approximately US$55.8 million as of January 2, 2023.
• Nickel 28 provides update on shareholder engagement efforts.”

On May 9 Nickel 28 announced:

Nickel 28 rejects Pelham’s latest zero premium take-over attempt. Pelham’s purported “settlement offer” would leave Nickel 28 without vital expertise or a credible plan to drive shareholder value. Nickel 28’s Board and management team has positioned the Company to become a leading cash generating battery metals investment vehicle…

On May 17 Nickel 28 announced: “Nickel 28 announces fiscal 2023 financial results.” Highlights include:

The Company’s principal asset, an 8.56% joint-venture interest in the Ramu Nickel-Cobalt (“Ramu”) integrated operation in Papua New Guinea, had another outstanding year in terms of production, sales and cash flow. Highlights from Ramu and the Company during the year include:

• “Full year debt repayment of US$21.3 million, with a remaining construction debt balance of US$55.8 million as at January 31st, 2023.
• Production of 34,302 tonnes of contained nickel and 2,987 tonnes of contained cobalt in mixed hydroxide precipitate (MHP) placing Ramu as one of the top producers of MHP globally.
• Total Ramu project revenue of over US$820 million.
• Average cash costs for the year, net of by-product sales, of US$3.37/lb. of contained nickel.
• Total net and comprehensive income of US$6.1 million or US$0.07 per share.”

Investors can view the company presentations here.

Electra Battery Materials [TSXV:ELBM] (ELBM)

On May 2 Electra Battery Materials announced: “Electra and First Nation-Owned Three Fires Group sign MOU to recycle lithium-ion battery waste in Ontario…”

On May 10 Electra Battery Materials announced: “Electra reports Q1 2023 results and provides update on Cobalt Refinery Project and Black Mass Recycling Trial.” Highlights include:

Electra Q1 2023 Highlights and Developments

• “Net loss for the period was $21.8 million or $0.61 per share. Included in the net loss was the impact of a debt offering transaction completed in the period involving a non-cash settlement of 2026 Notes in exchange for 2028 Notes at a loss of $19.9 million. Results for Q1 2023 compare to net income of $2.3 million or $0.08 per share for Q1 2022, which was driven by a gain of $4 million on the fair value of the embedded derivative liability portion of Electra’s convertible debt.
• Held cash and marketable securities of $12.9 million as at March 31, 2023, up from $8.4 million as at December 31, 2022. Electra’s cash balance at the end of Q1 2023 does not include the remaining $5.1 million of government investments expected to be received.
• Successfully completed the first plant-scale recycling of black mass material in North America and confirmed the recovery of critical metals, including lithium, nickel, cobalt, copper, manganese, and graphite, needed for the EV battery supply chain using Electra’s proprietary hydrometallurgical process.
• Disposed of non-core exploration assets in the Canadian Cobalt Camp to Kuya Silver Corporation for 2.7 million shares of Kuya valued at $1 million. Electra retained a two percent royalty on net smelter returns from all commercial production derived from the assets.
• Closed a private placement offering for the issuance of US$51 million principal amount of 8.99% senior secured convertible notes (“Note Offering”) due February 2028…
• Issued its inaugural Sustainability Report and committed to net-zero greenhouse emissions by 2050.
• Released an updated mineral resources estimate (“MRE”) for the Iron Creek Cobalt-Copper project located in Idaho…”

On May 11 Electra Battery Materials announced:

Electra provides update on Refinery Project and Black Mass Economics; Launches Strategic Review Process… To date, Electra has produced quality nickel-cobalt mixed hydroxide, graphite, and lithium carbonate products in its black mass recycling trial. The Company expects to begin commercial shipments of product to customers in Q2 2023. Electra completed an desktop scoping study to evaluate the potential economics of developing a standalone black mass process plant within its refinery complex capable of processing 2,500 tonnes of black mass material per annum. The Phase 1 facility could be scaled over time as the market for battery recycling expands. Highlights from Electra’s desktop scoping study include: Capital spend is estimated at approximately US$6 million. The internal rate of return is estimated at 127%. EBITDA is estimated to be in the range of US$9.6 to US$12.6 million per year beginning in the first full year of operations. The payback period is estimated at between 1 and 2 years.

Upcoming catalysts include:

• H1 2023 – Target to have their Ontario cobalt refinery operational with ore feed from Glencore.

Investors can view the company presentations here and a recent Trend Investing article on Electra here.

Possible mid-term producers (2024 onwards)

Jervois Global Limited [ASX:JRV] [TSXV: JRV] (OTCQX:JRVMF) [FRA: IHS] (formerly Jervois Mining)

On April 24 Jervois Global Limited announced: “U.S. Export-Import Bank confirms ICO’s eligibility for domestic financing initiatives.”

On April 24 Jervois Global Limited announced: “Jervois submits an ATVM loan application to the U.S. Department of Energy… “

On April 27 Jervois Global Limited announced: Jervois Global quarterly activities report to 31 March 2023.” Highlights include:

Jervois Finland:

• “Positive cash flow from operations of US$1.3 million resulting from business stabilization and working capital improvements.
• Q1 2023 cobalt sales of 1,558 metric tonnes, representing a +15% increase compared to prior quarter; revenue US$58 million.
• Q1 was final quarter where high priced 2022 raw material purchases impacted financial results; Kokkola refinery expansion Bankable Feasibility Study pivoted to the U.S.”

Idaho Cobalt Operations (“ICO”), United States (“U.S.”):

• “Final construction and commissioning suspended due to cobalt market conditions and U.S. inflationary impacts; restart to occur with higher cobalt prices.
• In-fill and expansion drill holes all intersected RAM’s main mineralized horizon.
• Updated Mineral Resource Estimate for RAM deposit offers opportunity to extend ICO mine life.
• U.S. Government (Department of Defense) grant for drilling and to assess construction of a U.S. cobalt refinery.”

São Miguel Paulista (“SMP”) Nickel and Cobalt Refinery, Brazil:

• “Initial supply contract secured from Gordes plant in Turkey (marketed by Traxys Europe SA); up to 25% SMP nickel capacity for three years.
• Refinery restart pace moderated pending financing.”

Corporate:

• “Mercuria increased its shareholding to 8.8%.
• Jervois ends March 2023 quarter with US$50 million in cash, US$66 million physical cobalt inventories in Jervois Finland, and total drawn debt of US$170 million.”

Upcoming catalysts include:

• Any announcements regarding Jervois Global’s ATVM loan application to the U.S. Department of Energy
• Restart of final construction at ICO. News regarding the refinancing of the restart of the São Miguel Paulista Refinery.

Sunrise Energy Metals Limited [ASX:SRL](OTCQX:SREMF)(formerly Clean TeQ)

Sunrise Energy Metals has 132kt contained cobalt at their Sunrise project.

On April 28 Sunrise Energy Metals Limited announced: “Quarterly activities report.” Highlights include:

• “The Company continues to progress discussions with potential equity funding and offtake partners for the Sunrise Battery Materials Complex (Sunrise Project). Ongoing work streams to advance the fully integrated Sunrise Project continued…
• Field exploration activities continued to advance during the quarter with a focus on expanding our understanding of the geological potential of our large tenement package in the Macquarie Arc, New South Wales (NSW)…Commencement of planning for FY24 exploration activities.”

Upcoming catalysts include:

• 2023 – Possible off-take agreements and project funding/partnering.

Investors can also read the latest company presentation here.

Ardea Resources [ASX:ARL] (OTCPK:ARRRF)

In total, Ardea has 5.9mt of contained nickel and 380kt of contained cobalt at their KNP Project near Kalgoorlie in Western Australia. Ardea is also exploring for gold and nickel sulphide on their >5,100 km2 of 100% controlled tenements in the Eastern Goldfields region of Western Australia.

On April 27 Ardea Resources announced:

Quarterly operations report for the quarter ended 31 March 2023. $14.5M cash-at-bank, supportive share register seeking development of the Kalgoorlie Nickel Project (KNP)…

Upcoming catalysts include:

• 2023 – Possible off-take partner and funding for the GNCP Project. Further potential exploration results including also for lithium, rare earths, and nickel sulphide.

Investors can read the latest company presentation here.

Cobalt Blue Holdings [ASX:COB] (OTCPK:CBBHF)

Cobalt Blue has 81.1kt of contained cobalt at their 100% owned Broken Hill Cobalt Project [BHCP] (formerly Thackaringa Cobalt Project) in NSW, Australia. LG International is an equity strategic partner.

On April 27 Cobalt Blue Holdings announced:

March 2023 quarterly activities report… COB’s activities primarily relate to the exploration and evaluation of the BHCP. There were no activities related to production or development. During the quarter, COB incurred1 $6.7m on exploration and evaluation activities, primarily relating to technical services, including drilling programs, demonstration plant operations and other Definitive Feasibility Study works.

Upcoming catalysts include:

• 2023/24 – Possible off-take agreements. Feasibility Study & project approvals. Final Investment decision. Potential project funding.

Investors can watch a CEO interview here and a recent presentation here.

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

On April 27 Australian Mines announced: “Quarterly activities report for period ended 31 March 2023.” Highlights include:

• “Sconi Project Studies – Following the technical and financial review of the business and the change in strategic direction to advance the Sconi project as a Nickel and Cobalt Sulphate Project, Australian Mines has been advancing this strategy along numerous fronts. Australian Mines submitted an Impact Assessment Statement with the Department of Environment and Sciences (DES) as a voluntary EIS with the application being accepted. Surface sampling exploration works continue on-site to identify additional resource expansion potential for further exploration drilling programs. Environmental seasonal monitoring and surface and ground water monitoring has commenced. Discussions with the Department of Resources are advancing regarding the granting of mining lease for the Greenvale MLA10368, which complements the granted Mining Leases at Lucknow (ML 10366) and Kokomo (ML 10342). The Company remains committed to assisting our current offtake partner LG Energy Solution (“LGES”) to meet its future cobalt and nickel requirements. Discussions are continuing regarding the required amendments to the Offtake Agreement. We are also seeking partners to fund the project to Final Investment Decision. The Company will update the market in due course with respect to such amendments and collaboration on finalization…
• Advancing Solid State Hydrogen Storage Metal Hydride project – Following positive progress made on the Research and Development program targeting onboard Solid-State Hydrogen Storage solutions for light-duty vehicles, the Company is progressing with a program of intellectual property protection.”

Investors can read the latest company presentation here.

Upcoming catalysts include:

• End of 2025 – FID for the Sconi Project.

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-gold-cobalt project (optioned to Oz Minerals), as well as a potentially large iron ore project at Grants. Havilah’s 100% owned Kalkaroo copper-gold-cobalt deposit contains JORC Mineral Resources of 1.1 million tonnes of copper, 3.1 million ounces of gold and 23,200 tonnes of cobalt.

On May 9 Havilah Resources announced: “Deep Well drilling returns encouraging new copper & critical minerals results.” Highlights include:

Three reverse circulation (RC) drillholes over an approximately 1 km strike length returned the highest combined grades of copper and critical minerals ever found at Deep Well, as follows:

• “KKRC0631 19 metres of 0.42% copper and 206 ppm cobalt from 163 metres downhole, including 3 metres of 1.64 g/t gold from 170 metres downhole.
• KKRC0639 37 metres of 0.25% copper from 28 metres downhole, including 22 metres of 0.09% molybdenum from 43 metres downhole.
• KKRC0630 110 metres of 0.12% copper from 62 metres downhole, including 29 metres of 0.26% copper and 460 ppm cobalt from 130 metres downhole.”

On May 17 Havilah Resources announced: “Johnson dam prospect positive drilling results.” Highlights include:

• “Appreciable copper, critical minerals (cobalt and rare earth elements) and uranium mineralisation identified at the Johnson Dam prospect by Strategic Alliance drilling.
• The gossan* targeted by the drilling is the surface expression of an up to 30-40 metres thick, southeast-dipping pyrite-rich horizon that may be correlated with the Kalkaroo deposit host unit.
• Favourable aspects of the Johnson Dam prospect include the lack of overburden, proximity to the Kalkaroo deposit, more than 3 km of unexplored strike and the mix of valuable commodities.”

Upcoming catalysts include:

• 2023 – Progress towards the OZ Minerals option to buy Kalkaroo. Mutooroo exploration results.

Investors can learn more by reading the Trend Investing article “Havilah Resources Has Huge Potential and/or the update article. You can also view a CEO interview here, and the company presentation here.

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

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

On April 28 Aeon Metals announced: “Quarterly activities report.” Highlights include:

• “Global Copper Rich resource now potentially Australia’s highest grade, substantial and primary cobalt deposit (33.6 Mt at 0.15% Co), including Amy (8.3 Mt at 0.22% Co).
• Approximately 61.4% of updated Global Mineral Resource in higher confidence Measured and Indicated classifications.
• Approximately 52 km of prospective new target strike areas identified.
• Planning for 2023 exploration program well advanced, drilling targeted from early June.
• OCP loan facility limit increase of A$5 million and repayment maturity extended to 17 December 2024.”

On Mar 19 Aeon Metals announced: “Walford Creek exploration strategy.” Highlights include:

• “Fieldwork commenced at Walford Creek focused on combined geophysical and geochemical anomalies with work including: LAG sampling supported by onsite portable XRF analysis. Detailed geological mapping.
• Drilling contractor retained and drilling expected to commence during June…”

Alliance Nickel Limited [ASX:AXN] (Formerly GME Resources)

Alliance Nickel 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 April 24 Alliance Nickel Limited announced: “Quarterly activities report March 2023.” Highlights include:

• “Advancement on schedule of the Definitive Feasibility Study (“DFS”) with engineering partner Ausenco and other key consultants across a wide range of workstreams.
• Preparation and commencement of aircore and diamond drilling at the Mt Kilkenny deposit targeting an increased Ore Reserve and to support DFS work programs including geotechnical studies.
• Signing of a non-binding MOU with VinES in relation to future offtake of battery grade nickel and cobalt sulphate products from NiWest and project financing.
• Progress in negotiations with Stellantis towards a binding agreement in relation to future offtake of battery grade nickel and cobalt sulphate products from NiWest.”

On May 1 Alliance Nickel Limited announced: “Alliance Nickel executes Binding Offtake Agreement and Cornerstone Equity Investment with Stellantis N.V.” Highlights include:

• “Alliance Nickel and Stellantis N.V. execute Binding Offtake Agreement for approximately 40% of future annual forecast NiWest nickel and cobalt sulphate production for an initial term of 5 years.
• Share Subscription Agreement for A$15 million giving Stellantis an 11.5% shareholding in Alliance and the right to nominate one director to the Alliance Board.
• The partnership strengthens Stellantis’ value chain for electric vehicle battery production and strongly supports the NiWest Definitive Feasibility Study and the future project funding and development pathway.”

On May 3 Alliance Nickel Limited announced: “Alliance Nickel receives $12.7 million from first Tranche of Strategic Placement to Stellantis N.V…”

Investors can read a company investor presentation here.

Global Energy Metals Corp. [TSXV:GEMC][GR:5GE1] (OTCQB:GBLEF)

On April 27 Global Energy Metals Corp. announced: “Global Energy Metals Consolidates 100% Ownership in Lovelock Mine and Treasure Box Projects, Two Growth-Stage Strategic Battery Metal Projects in Nevada, USA.” Highlights include:

• “GEMC to consolidate 100% ownership of the Lovelock and Treasure Box projects.
• The Transaction will increase the current interest in the Projects from the current 85% to 100%.
• GEMC holding 100% ownership of the Project will simplify decision-making and provides the optimal structure to oversee the rapid exploration and development of key U.S. based critical minerals projects.
• Consolidation of 100% of the Projects’ ownership will de-risk the funding pathway and enhance GEMC’s ability to source capital for the development of the Projects from a wider range of providers when compared with the existing joint venture ownership structure.
• Consideration will be paid in GEMC shares, subject to TSX Venture Exchange approval, vesting over 12 months thereby allowing the shareholders of the vendor to retain exposure to the Projects.”

Giga Metals Corp. [TSXV:GIGA][FSE: BRR2] (OTCQX:HNCKF) (Turnagain Nickel Deposit now held via Hard Creek Nickel Corporation [TSXV:HNC] (OTCQX:HNCKF)

No news for the month.

The Metals Company (TMC)

On May 11 The Metals Company announced: “The Metals Company provides Q1 2023 corporate update.” Highlights include:

• “Net income and per share amount of $nil for the quarter ended March 31, 2023, after recording a gain on disposition of asset of approximately $14 million.
• Total cash of approximately $28.4 million at March 31, 2023.
• The Company believes that existing cash and liquidity will be sufficient to fund operations for at least the next twelve months.”

Other juniors and miners with cobalt

Happy to hear any news updates from commentators. Tickers of cobalt juniors we will also be following include:

21st Century Metals (CSE: BULL) (OTCQB:DCNNF), African Battery Metals [AIM:ABM], Alloy Resources [ASX:AYR], Artemis Resources Ltd [ASX:ARV] (OTCQB:ARTTF), Aston Minerals [ASX:ASO] (formerly European Cobalt), Auroch [ASX:AOU] [GR:T59], Azure Minerals [ASX:AZS] (OTCPK:AZRMF), Bankers Cobalt [TSXV:BANC] [GR:BC2] (NDENF), Battery Mineral Resources [TSXV:BMR], BHP Group Limited (BHP), Blackstone Minerals [ASX:BSX], Brixton Metals Corporation [TSXV:BBB], (OTCQB:BBBXF), Canada Nickel [TSXV:CNC], Canada Silver Cobalt Works Inc [TSXV:CCW] (OTCQB:CCWOF), Canadian International Minerals [TSXV:CIN], Capstone Copper Corp. [TSX:CS], Carnaby Resources [ASX:CNB], Castillo Copper [ASX:CCZ], Celsius Resources [ASX:CLA] [GR:FX8], Centaurus Metals [ASX:CTM], CBLT Inc. [TSXV:KBLT] (OTCPK:CBBLF), Cobalt Power Group [TSX:CPO], Cohiba Minerals [ASX:CHK], Corazon Mining Ltd [ASX:CZN], Cruz Battery Metals Corp. [CSE:CRUZ][FSE: A2DMG8] (OTCPK:BKTPF), Cudeco Ltd [ASX:CDU] [GR:AMR], DLE Resources [TSXV:DLP], Dragon Energy [ASX:DLE], Edison Battery Metals [TSXV:EDDY], Electric Royalties [TSXV:ELEC], First Quantum Minerals Ltd. (OTCPK:FQVLF), Fortune Minerals [TSX:FT] (OTCQB:FTMDF), Fuse Cobalt Inc [CVE:FUSE] (WCTXF), Galileo [ASX:GAL], GME Resources [ASX:GME] (OTC:GMRSF), Golden Arrow Resources [TSXV:GRG] (OTCQB:GARWF), High-Tech Metals [ASX:HTM], Hinterland Metals Inc. (OTCPK:HNLMF), Hylea Metals [ASX:HCO], Idaho Champion [CSE:ITKO] [FSE:1QB1] (OTCQB:GLDRF), IGO Limited [ASX:IGO] (OTCPK:IIDDY), King’s Bay Res (OTCPK:KBGCF) [TSXV:KBG], Latin American Resources, M2 Cobalt Corp. (TSXV: MC) (OTCPK:MCCBF), MetalsTech [ASE:MTC], Meteoric Resources [ASX:MEI], Mincor Resources (OTCPK:MCRZF) [ASX:MCR], Namibia Critical Metals [TSXV:NMI] (OTCQB:NMREF), Pacific Rim Cobalt [BOLT:CSE], PolyMet Mining [TSXV:POM] (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), Queensland Pacific Metals [ASX:QPM] (OTCPK:QPMLF), Regal Resources (OTC:RGARF), Resolution Minerals Ltd [ASX:RML], Sienna Resources [TSXV:SIE], (OTCPK:SNNAF), Stillwater Critical Minerals Corp. [TSXV:PGE] (OTCQB:PGEZF), and Victory Mines [ASX:VIC].

Conclusion

May saw cobalt spot prices flat and LME inventory lower.

Highlights for the month were:

• Germany to dedicate $2.2 billion to secure supply of critical commodities – report.
• Cobalt to remain key EV raw material despite substitution threat.
• Fastmarkets’ research analysts forecast cobalt will reach an oversupply of 4,000 tonnes in 2023, with the surplus increasing to 14,000 tonnes in 2024. NCM looks to remain a popular battery chemistry outside of China.
• Glencore and Li-Cycle announce joint study to develop a European recycling hub to produce lithium, nickel and cobalt.
• CMOC Group’s January to March, 2023 profit falls 82.3%. Negative impact due to lower cobalt prices and DRC problems.
• Huayou Cobalt in talks to form Battery Materials Project with South Korea’s POSCO Future.
• Gem Co reports Q1, 2023 net profit decrease of 48.01% YoY.
• BHP Group completes OZ Minerals takeover.
• Nickel 28 confirms receipt of largest ever cash distribution from Ramu joint venture of US$9.7 million. Rejects Pelham’s latest zero premium take-over attempt.
• Electra successfully completed the first plant-scale recycling of black mass material in North America and confirmed the recovery of critical metals, including lithium, nickel, cobalt, copper, manganese, and graphite.
• Jervois submits an ATVM loan application to the U.S. Department of Energy. Jervois Global Kokkola refinery expansion BFS pivoted to the U.S.
• Aeon Metals Walford Creek global copper rich resource now potentially Australia’s highest grade, substantial and primary cobalt deposit (33.6 Mt at 0.15% Co).
• Alliance Nickel executes Binding Offtake Agreement and cornerstone equity investment with Stellantis N.V.
• Global Energy metals Corp. to consolidate 100% ownership of the Lovelock and Treasure Box projects.

As usual all comments are welcome.

Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.

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