Cobalt Miners News For The Month Of August 2023

Welcome to the August 2023 cobalt miners news.

The past month saw continued weak cobalt prices and news that Glencore may reduce production or stockpile cobalt. Jervois Global has its projects on hold showing at current cobalt prices there is minimal incentive for juniors to start up production. These are usually the signs of a bottoming market as we saw in 2019 and 2020. We will see what happens in 2024. Looking out to the second half of the decade cobalt demand is expected to outstrip supply.

Cobalt price news

As of August 24, the cobalt spot price was at US$14.84/lb, about the same as US$14.85/lb last month. The LME cobalt price is US$32,470/tonne. LME Cobalt inventory is 93 tonnes, the same as the 93 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 14.85 (source)

Cobalt demand v supply forecasts

Cobalt supply and demand forecast - Deficits growing from ~2025/26 (forecast as of 2023 by Cobalt Blue, Benchmark Mineral Intelligence, & Rho Motion) (source)

Trend Investing v IEA demand forecast for EV metals (Trend Investing) (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

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)

Cobalt market news

On August 9 Reuters reported:

Glencore stockpiled cobalt in first half to support prices......."There is still a surplus in the market," Nagle told analysts in a call after the company's half-year results. "Taking action is something we have done before and it is something we will consider in the future...(It) could be lower production or stockpiling for a period of time or a combination."

On August 15 Reuters reported:

Surpluses, low prices to remain a feature of cobalt market. Surging supplies of cobalt from Indonesia and Africa are forecast to outpace demand from electric vehicles, generating large surpluses over the next few couple of years which will keep prices of the metal under pressure. Throwing the spotlight on the deteriorating outlook was London-listed miner Glencore (GLEN.L), which last week said it would consider adding to its cobalt stockpiles and cut production to support cobalt prices.

Cobalt company news

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

On August 8, Glencore announced:

2023 half-year report... Adjusted EBITDA of $9.4 billion, cash generated by operating activities of $8.4 billion and Net income attributable to equity holders of $4.6 billion... Net debt finished the period at $1.5 billion...

On August 8, Glencore announced:

Share buy-back programme... of an aggregate value of USD1.2 billion (the "Programme"), subject to market conditions, with intended completion by the time of the Group's full year results announcement in February 2024. The Programme will be effected in accordance with the terms of the authority granted by shareholders at the 2023 AGM. The Programme's purpose is to reduce the capital of the Company. It is currently intended that any Shares purchased will be held in treasury.

On August 9 Reuters reported: "Glencore stockpiled cobalt in first half to support prices..."

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

No significant news for the month.

Zheijiang Huayou Cobalt [SHA:603799]

On August 10, Zheijiang Huayou Cobalt announced:

Huayou Cobalt and LG Energy Solution join forces to establish battery closed-loop partnership.....With the aim of creating an unbroken closed-loop system spanning the entire lifecycle of lithium batteries and fostering stronger collaboration along the industrial chain.......

Jinchuan Group International Resources [HK:2362]

On August 8, Jinchuan Group International Resources announced:

Operational update for the six months ended 30 June 2023.....In 2023 1H, the Group's mining operations produced 30,200 tonnes of copper content included in copper cathode, copper concentrate and copper-cobalt concentrate (six months ended 30 June 2022 ("2022 1H"): 28,789 tonnes of copper content included in copper cathode and copper concentrate) and 1,364 tonnes of cobalt content included in cobalt hydroxide and copper-cobalt concentrate (2022 1H: 2,603 tonnes of cobalt content included in cobalt hydroxide).....The Group's mining operations generated revenue from sales of copper of approximately US$221.0 million (2022 1H: approximately US$234.5 million), representing approximately 6% year-on-year decrease compared to 2022 1H, and generated revenue from sales of cobalt of approximately -US$1.5 million (including approximately US$3.6 million from sales of cobalt in the 2023 1H and a downward revision of provisional price previously recognised of approximately US$5.1 million due to the drop in Metal Bulletin ("MB") cobalt price in 2023 1H) (2022 1H: US$130.8 million). Moreover, the revenue generated from trading of externally sourced mineral and metal products amounted to approximately US$107.6 million, representing a decrease of approximately 38% as compared to approximately US$174.1 million in 2022 1H.

On August 18, Jinchuan Group International Resources announced: "....interim results for the six months ended 30 June 2023....." (the result was a net loss of ~US$10m)

Chemaf (subsidiary of Shalina Resources)

On August 2 Bloomberg reported: "Trafigura's $600 million cobalt play faces cash crunch in Congo." Highlights include:

• "Trading house is seeking new funds for flagship Chemaf project.
• Cobalt prices have slumped and project has overshot its budget."

GEM Co Ltd [SHE:002340]

No significant news for the month.

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 July 28 Umicore SA announced: "Half year results 2023." Highlights include:

• "Revenues of € 2.1 billion (0%).
• Adjusted EBITDA of € 519 million (-14%).
• Adjusted EBIT of € 373 million (-19%).
• EBIT adjustments of - € 13 million.
• ROCE of 15.2% (compared to 20.8% in first half 2022).
• Adjusted net profit (Group share) of € 233 million and adjusted EPS of € 0.97.
• Cashflow from operations of € 409 million, including a € 26 million increase in working capital requirements; free cashflow from operations of € 60 million.
• Capital expenditure amounted to € 335 million (+77%).
• R&D expenditures of € 147 million (+4%).
• Interim dividend of € 0.25 per share on 22 August 2023.
• Net debt / LTM adj. EBITDA ratio of 1.30x with net debt at € 1,390 million."

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

On August 7, Sumitomo Metal Mining Co. announced: "Consolidated financial results for the first quarter ended June 30, 2023 [IFRS]....."

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

On August 2, MMC Norilsk Nickel announced: "Nornickel reports 1H 2023 interim consolidated IFRS financial results." Highlights include:

• "Consolidated revenue decreased 20% y-o-y amounting to USD 7.2 billion following the decline of prices for all key metals despite higher physical sales of PGMs and gold.
• Successful diversification of metal sales resulted in Asia becoming the largest market with a revenue share of almost 50% for the first time in the Company's history.
• EBITDA decreased 30% y-o-y to USD 3.4 billion owing to lower revenue while EBITDA margin remained at healthy 47%.
• Cash operating costs decreased 12% y-o-y to USD 2.7 billion mostly driven by the management focus on operating efficiencies that allowed to mitigate inflationary pressure on expenditures in spite of higher repair and maintenance costs aimed at improvement of industrial safety.
• CAPEX decreased 19% y-o-y to USD 1.5 billion.....
• Net working capital decreased 20% year-to-date to USD 3.2 billion driven mostly by devaluation of ruble and decrease in receivables.
• Net debt decreased 8% y-o-y to USD 9.1 billion with net debt/EBITDA ratio as of June 30, 2023 slightly increasing to 1.2x.
• The Company continued the optimization of its debt portfolio to adapt to changing debt market reality and new lending terms. In May 2023,

  Nornickel placed five-year RUB 60 billion exchange-traded bonds."

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

On July 26, Sherritt International announced: "Sherritt reports Q2 results and strong liquidity from Cobalt Swap." Highlights include:

• "Available liquidity in Canada of $125 million largely driven by the successful completion of the first year of the Cobalt Swap.
• Final 802 tonnes of cobalt dividend required to fulfill the 2,082 tonne annual maximum volume received;
• Cash dividend of US$48.5 million ($64 million) received as a top-up payment as the total in-kind value of cobalt received did not meet the annual dollar minimum of US$114 million (US$57 million per partner);
• General Nickel Company's [GNC] 50% share of the cobalt and cash dividends, collectively US$57 million ($76 million) was redirected to Sherritt as payment towards the GNC receivable; and
• Sherritt sold 1,064 tonnes, $38.4 million, of cobalt (1,760 tonnes, $68.2 million for the year to date) and has received $35.1 million in cash from sales ($53.9 million for the year to date).
• Sherritt's share of finished nickel and cobalt production at the Moa JV was 3,268 tonnes and 331 tonnes, 12% and 16% lower, respectively, than the prior year quarter.
• Net direct cash cost (NDCC)(1) was US$7.22/lb in Q2 2023 compared to US$2.19/lb in Q2 2022 primarily due to 63% lower cobalt and 35% lower fertilizer realized prices. Sherritt revised its 2023 NDCC guidance range from US$5.00 - US$5.50 to US$6.75 - US$7.25 per pound of nickel sold.
• Power production increased by 29% compared to Q2 2022 primarily from the receipt of gas from two new wells and improved equipment availability. Sherritt updated its 2023 annual production guidance range from 575 - 625 GWh to 650 - 700 GWh and reduced its unit operating cost guidance range from $28.50 - $30.00/MWh to $27.25 - $28.75/MWh.
• Net earnings from continuing operations was $0.3 million, or $nil per share in Q2 2023, compared $81.5 million, or $0.21 per share, in Q2 2022...."

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

On July 26, Nickel 28 announced: "Nickel 28 releases Ramu Q2 2023 operating performance." Highlights include:

• "Production of 7,784 tonnes of contained nickel and 717 tonnes of contained cobalt in mixed hydroxide precipitate ("MHP") during the second calendar quarter, continuing to place Ramu as one of the top producers of MHP globally.
• Sales of 9,078 tonnes of contained nickel and 822 tonnes of contained cobalt in MHP during the second calendar quarter.
• LME average nickel price of US$10.16/lb. in Q2 2023, a decline of 23% from the same period last year. The average H1 2023 LME nickel price was $10.99/lb. compared to an average LME nickel price of $12.50/lb. for H1 2022.
• Fast Markets average cobalt price of US$15.07/lb. in Q2 2023, a decline of 61% from the same period last year. The average H1 2023 Fast Markets cobalt price was $16.03/lb. compared to an average Fast Markets cobalt price of $36.93/lb. for H1 2022.
• Actual cash cost, net of by-product credits of $3.92/lb. of nickel produced as MHP, representing a 29% increase from the same period last year. H1 2023 cash cost, net of by-product credits of $3.49/lb. of nickel representing an increase of 57% from the same period the prior year."

Investors can view the company presentations here.

Electra Battery Materials [TSXV:ELBM] (ELBM)

On August 11, Electra Battery Materials announced:

Electra closes private placements for gross proceeds of $21.5 million, including exercise of over-allotment option.....

On August 17, Electra Battery Materials announced:

Electra reports Q2 2023 results and provides update on Cobalt Refinery Project and Black Mass Recycling Trial."

Highlights include:

• Net income for the period was $12.0 million or $0.33 per share. The totals were driven by a gain of $14.4 million of fair value adjustments relating to the 2028 Notes and unrealized derivative financial liability gain.

• Operating loss for Q2 2023 was $4.5 million, up from $3.9 million for Q2 2022. The increase was driven by higher compensation costs due to more staff and higher legal and professional fees, and partially offset by lower exploration costs for Iron Creek.

• Held cash and marketable securities of $7.4 million as at June 30, 2023, down from $12.9 million as at March 31, 2022......

• Progressed with the first plant-scale recycling of black mass material in North America using Electra's proprietary hydrometallurgical process. Progress in Q2 was marked by high recoveries of critical metals, including lithium, nickel, cobalt, copper, manganese, and graphite, needed for the EV battery supply chain, and the production of high-quality nickel-cobalt mixed hydroxide, graphite, and lithium carbonate products.

• Released highlights of a desktop scoping study[1] focused on evaluating the economics of developing a modular process plant initially capable of processing 2,500 tonnes of black mass material per year. The scoping study determined that:

  • The capital spend is estimated at $8.1 million ($US6 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 with the first full year of operations.
  • The payback period is estimated at between one and two years.

• Released highlights of a re-baseline engineering report focused on determining the capital spend requirements for completing construction of a cobalt refinery complex capable of producing 5,000 tonnes of cobalt contained in sulfate per year.....The total capital spend for completing the refinery project is currently estimated at $155 to $167 million of which $81.7 million of capitalized development costs have been incurred to date.

• Signed a memorandum of understanding with the First Nation-owned Three Fires Group to form a joint venture focused on the recycling of lithium-ion battery waste in Ontario......"

Highlights Subsequent to Quarter End

• "......Made the first customer shipment of nickel-cobalt produced at the Company's refinery complex north of Toronto from recycled battery material."

Investors can view the company presentations here and a 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 July 27, Jervois Global Limited announced: "Jervois Global Limited quarterly activities report to 30 June 2023." Highlights include:

Jervois Finland:

• "Adjusted EBITDA1 of US$2.6 million and cash flow from operations of US$31.9 million in the quarter.
• Q2 2023 cobalt sales of 1,602 metric tonnes.
• Awarded conditional €12.0 million grant to partially fund a potential expansion of cobalt refining capacity in Kokkola."

Idaho Cobalt Operations ("ICO") in the United States ("U.S."):

• "Completed ICO demobilisation and transition to suspension mode.
• Entered agreement for US$15.0 million, to be received by Jervois under Defense Production Act Title III, to accelerate ICO resource drilling and advance a bankable feasibility study for a U.S.-located cobalt refinery.
• U.S. Export Credit Agency, EXIM confirms ICO eligibility for domestic financing."

São Miguel Paulista ("SMP") nickel and cobalt refinery in Brazil:

• "Partner financing advancing with multiple parties engaged in due diligence."

Corporate:

• "Jervois ended the quarter with US$32.2 million in cash, US$48.6 million physical cobalt inventories at Jervois Finland, and total drawn debt of US$157.5 million.
• US$50.0 million capital raising in July: US$25.0 million unsecured convertible note ("UCN") in 2 tranches; and fully underwritten US$25.0 million non-renounceable entitlement offer.
• Cash balance of US$53.4 million at 25 July 2023 (2nd tranche of US$5.1 million UCN expected late August) and US$148.9 million drawn debt."

On August 2, Jervois Global Limited announced: "Jervois commences drilling on its Sunshine deposit adjacent to ICO; costs refundable by the U.S. Department of Defense." Highlights include:

• "Jervois commences US$2.4 million surface drilling campaign at Sunshine deposit, fully-refundable by the United States ("U.S.") Government per the previously announced Department of Defense ("DoD") Defense Production Act ("DPA") Title III US$15.0 million funding agreement.
• Sunshine is an historic resource adjacent to Jervois' 100% owned ICO deposit; work will focus on delineating it to modern geological standards.
• ICO's mineral resource and reserve is the largest and highest grade confirmed cobalt orebody in the U.S....."

On August 2, Jervois Global Limited announced: "Jervois commences U.S. cobalt refinery site selection; costs refundable by U.S. Department of Defense."

On August 18, Jervois Global Limited announced: "Interim condensed financial report for the half-year ended 30 June 2023....."

On August 21 Fastmarkets reported:

Jervois Global 'moderates' Sao Miguel Paulista refinery restart; moves to re-align project portfolio...... Jervois Global has decided to consider purchase offers for its Nico Young nickel and cobalt project located in New South Wales, Australia, as part of an ongoing portfolio review....... "The full reactivation of the [SMP] restart project is to be expected once we have a confirmed funding pathway".......The cost guidance of the SMP project is unchanged considering the restart decision, estimated at $65 million.......Bryce Crocker, chief executive officer of Jervois Global, has previously stated that the restart of ICO would look to only be considered if the cobalt metal price heads above $25 per lb.

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 July 25, Sunrise Energy Metals Limited announced: "Quarterly activities report." Highlights include:

• "Ongoing work streams to advance the Sunrise Project continued with activities focussed on: Advancing work on the electrical transmission line work scope. Progression of the detailed Oversize Transportation Corridor Study. Completion of test work and process development assessing opportunities for recycling of spent battery materials; and Ongoing drilling of water bores for Project water supply.
• The Company has filed a patent application in order to protect the intellectual property relating to the LiB cathode chemistry which was developed utilising the Sunrise sulphate formulation.
• The Company continues to progress discussions with potential equity funding and offtake partners for the Sunrise Project.
• 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. Key developments include: Limestone 2023 RC Drilling Program final report completed and submitted. Targeting & field work undertaken at the Minore tenement. ELA6627 application was submitted, and work plan drafted."

On August 22, Sunrise Energy Metals Limited announced: "Annual report 2023....."

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 6.1Mt of contained nickel and 386,000t 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 July 27, Ardea Resources announced:

Quarterly operations report for the quarter ended 30 June 2023..... $10.6M cash-at-bank, no debt, tight capital structure, and supportive share register seeking development of the Kalgoorlie Nickel Project (KNP).....The KNP Goongarrie Hub Pre-Feasibility Study [PFS] was completed during the Quarter and announced concurrently with a non binding Memorandum of Understanding [MOU] with the Consortium of Sumitomo Metal Mining Co., Ltd, Mitsubishi Corporation, and Mitsui & Co., Ltd (Ardea ASX announcements 5 July 2023).

Upcoming catalysts include:

• 2023 - Possible off-take partner agreement (MOU already signed) 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 July 31, Cobalt Blue Holdings announced: "June 2023 quarterly activities report." Highlights include:

Strategy Update

Broken Hill Cobalt Project (BHCP) Activities

• "Definitive Feasibility Study update.
• Demonstration Plant operations.
• Permitting - Environmental Impact Statement."

Cobalt in Waste Streams Project (CWSP) Update

• "Cobalt Trends.
• Prices bouncing off the bottom.
• Cobalt's demand recovery - key to price recovery."

Corporate

• "Commercial Partner Update.
• Investor and marketing presentations.
• Expenditure and grants."

On August 3, Cobalt Blue Holdings announced: "Demonstration Plant success. Refinery Development Program launched." Highlights include:

• "BHCP Demonstration Plant: Successful operations continue with targeted continuous runs completed. Operations over recent weeks have delivered Mixed Hydroxide Precipitate (MHP), ranging from smaller samples for analysis and assessment to larger samples for use in engineering studies needed to evaluate and specify equipment for the Broken Hill Cobalt Project (BHCP) processing facility. Samples produced continue to be evaluated internationally as part of our partner program.
• Refinery Development Program: COB is commencing a raw materials testing program, sourcing a broad range of cobalt rich materials representing global cobalt supply. The intention is to trial up to 5 tonne samples from third-party suppliers and produce cobalt sulphate on a 1:50 scale basis.
• Refinery Permitting: COB has commenced discussions with West Australian Government regulators on the permitting pathway for the cobalt sulphate refinery.
• Strategic alignment of refinery business: COB is aiming to be one of the first critical minerals projects to deliver directly into the Allied Supply Chain created by the US Inflation Reduction Act (IRA) and EU Critical Raw Minerals Act (CRMA)."

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 July 28, Australian Mines announced: "Quarterly activities report for period ended 30 June 2023." Highlights include:

Sconi Battery Minerals Project:

• "Granting of ML 10368: Australian Mines Limited wholly owned subsidiary Sconi Mining Operations Pty Ltd was granted Mining Lease 10368 for the Greenvale mining area by the Queensland Government Department of Resources on 4 July 2023, subsequent to the quarter end. This mining lease, combined with the Lucknow and Kokomo mining leases, forms the critical battery minerals Sconi Nickel-Cobalt-Scandium Project in North Queensland.
• Environmental Impact Statement: The Queensland Department of Environment and Science [DES] approved the Environmental Impact Statement [EIS] process following the submission of the Initial Advice Statement [IAS] in Q1, as the pathway to environmental approval for the Sconi Battery Minerals Project.....
• Permitting: AUZ has drafted applications for additional lease areas for infrastructure and haul road connections at the Sconi Project area. These additional permits will form part of the greater Sconi Battery Minerals Project area and a pre-lodgment meeting was held with the Queensland Department of Resources (DoR).
• Exploration: Field-based surface rock and soil sampling exploration activities were conducted on prospective ground previously identified by an independent review at the Sconi mining and exploration leases to potentially identify additional nickel, cobalt and scandium mineral deposits. Drill programs and schedules are being developed to further test this ground for potential resource addition.
• Strategic Collaborative Partner: AUZ continues discussions to secure a Strategic Collaborative Partner to assist in driving the project deliverables as we work towards our goal of FID by the end of 2025/early 2026....."

On August 16, Australian Mines announced:

Organisational change. Australian Mines Limited (ASX: AUZ) (Australian Mines or the Company) advises that its CEO Michael Holmes has tendered his resignation from Australian Mines effective 13 October 2023 to pursue other interests.

Investors can read the latest company presentation here.

Upcoming catalysts include:

• End of 2025/early 2026 - FID for the Sconi Project.

Havilah Resources [ASX:HAV] [GR:FWL] (OTCPK:HAVRF)

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 July 31, Havilah Resources announced: "Havilah-BHP Kalkaroo Work Program update." Highlights include:

• "BHP's recently completed interim assessment of the Kalkaroo copper-gold-cobalt project (Kalkaroo or the Project) has largely substantiated Havilah's previous pre-feasibility study [PFS] conclusions.
• First phase works are complete including a 31 hole diamond drilling program on the Kalkaroo mining lease.
• Multiple technical workstreams are being consolidated by the BHP Think & Act Differently (TAD) Study team to de-risk the Project and increase confidence in the key value drivers of metal recovery, operating costs and capital costs.
• Analysis of intersections for twinned drillholes indicated no systematic bias in the data for copper, but gold was roughly 20% higher in the BHP diamond drillholes as compared to the Havilah aircore and reverse circulation drillholes."

Upcoming catalysts include:

• 2023 - Progress towards the OZ Minerals (now owned by BHP Group) 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 July 23 Aeon Metals announced: "Quarterly activities report." Highlights include:

• "Fieldwork completed at Walford Creek focussed on overlaying identified geophysical and geochemical anomalies with further technical surveys including....
• Waanyi People #3 Native Title claim covering Walford Creek tenements registered triggers formal change in Traditional Owners for cultural heritage matters.
• Drilling program for 2023 field season remains pending establishment and undertaking of new cultural heritage monitoring agreement."

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 July 28, Alliance Nickel Limited announced: "Quarterly activities report June 2023." Highlights include:

• "Entered into a binding offtake agreement and share subscription agreement with Stellantis N.V. (Stellantis) in relation to future offtake from the NiWest Nickel Cobalt Project.
• Tranche 1 of Strategic Placement (the Placement) completed with Stellantis subscribing for A$15 million in new equity for 70.6 million shares at a subscription price of A$0.18 per share representing a 90% premium to the 30 day VWAP trading at that time.....
• Key Definitive Feasibility Study [DFS] work programs progressing to plan and on budget with expected delivery of the NiWest DFS in Q4 2023....."

On August 4, Alliance Nickel Limited announced: "Stellantis Receives FIRB approval for second Tranche Strategic Placement to Alliance." Highlights include:

• "Tranche 2 new equity proceeds of A$2.3 million expected in September 2023.
• Completion will increase Stellantis' total equity investment in Alliance (at A$0.18 per share) to A$15 million."

Investors can read a company investor presentation here.

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

On August 8, Global Energy Metals Corp. announced: "Global Energy Metals JV partner identifies strongly conductive zones in geophysics at the Ranbogen Prospect, Rana Nickel-Copper-Cobalt Project, Norway."

• ".......Target "Rånbogen 02" correlates well with historical drilling on the northern margin of the conductive anomaly which returned a best intercept of 17.5 metres @ 0.53 % Ni, 0.12 % Cu, and 0.05 % Co from 101 metres (SH004), including 2.5 metres @ 1.13 % Ni, 0.24 % Cu, and 0.10 % Co (see ASX announcement dated 18 January 2023)......"

Giga Metals Corp. [TSXV:GIGA][FSE: BRR2] (OTCQX:GIGGF) (Turnagain Nickel Deposit now held via Hard Creek Nickel Corporation [TSXV:HNC]. Giga Metals [TSXV:GIGA] retained a 85% interest in Hard Creek Nickel.

On July 24 Giga Metals Corp announced:

Giga Metals announces symbol change on OTC Markets to GIGGF......The Corporation will continue to trade on the TSX Venture Exchange ("TSX.V") in Canada under the symbol "GIGA.V" and on the Frankfurt Stock Exchange ("FSE") under the symbol "BRR2".

The Metals Company (TMC)

On July 31, The Metals Company announced:

Congressional Leaders urge President Biden and the Department of Defense to consider polymetallic nodules for U.S. critical mineral supplies and national security.....

On August 1, The Metals Company announced: "MC announces corporate update on expected timeline, application costs and production capacity following Part II of the 28th Session of the International Seabed Authority." Highlights include:

• "TMC subsidiary Nauru Ocean Resources Inc. (NORI) intends to submit an application to the ISA for an exploitation contract for NORI Area D following the July 2024 meeting of the ISA. Assuming a one-year review process, NORI expects to be in production in the fourth quarter of 2025.
• NORI and strategic partner Allseas plan for an increased production capacity for the Project Zero Offshore System, using the Hidden Gem vessel, from an estimated 1.3 million wet tonnes to an estimated 3.0 million wet tonnes per annum, an increase of 130%, including an additional 15-meter-wide collector vehicle, a wider diameter riser pipe, larger compressor spread, and improvements to the system designed to further mitigate its environmental impacts.
• The Company estimates that it will require $60 to 70 million of additional cash to submit an application for an exploitation contract following the July 2024 meeting of the ISA.
• TMC had $20M cash on hand and an undrawn $25M unsecured credit facility as of June 30th 2023. Allseas has agreed to extend the maturity date of the $25 million unsecured credit facility provided to the Company through November 30, 2024 on the same terms. In addition, on August 1, 2023, the Company and Allseas entered into an Exclusive Vessel Use Agreement which will give the Company exclusive use of the Hidden Gem in support of the development of the Project Zero Offshore System with 4.15 million common shares to be issued to Allseas as consideration."

On August 14, The Metals Company announced:

The Metals Company announces ~US$27 million registered direct Offering at $2.00 per share plus Class A Warrants.....Each Common Share and the accompanying Class A Warrant to purchase 0.5 Common Shares are being sold at a price of US$2.00. The Class A Warrants have an initial exercise price of US$3.00 per share, subject to certain adjustments therein, are exercisable immediately upon issuance and will expire on December 31, 2027. Gross proceeds to the Company from the offering are expected to be approximately US$27 million, before deducting the financial advisors' fees and other offering expenses payable by the Company. The Company intends to use the net proceeds from the offering on working capital and general corporate purposes.

On August 14, The Metals Company announced: "The Metals Company provides second quarter 2023 corporate update and commentary on ~$27 million capital raise at $2.00 per share with potential upsizing to $38 million." Highlights include:

Q2 2023 Financial Highlights

• "Net loss of $14.1 million and per share amount of $0.05 for the quarter ended June 30, 2023.
• Total cash of approximately $20.0 million at June 30, 2023.......

Chilean Cobalt Corp.

Chilean Cobalt Corp. ("C3") is a critical minerals exploration and development company focused on the La Cobaltera project located in Chile's historic San Juan cobalt district.

On August 14, Market Screener reported:

Chilean Cobalt Corp. reports earnings results for the second quarter and six months ended June 30, 2023. Chilean Cobalt Corp. reported earnings results for the second quarter and six months ended June 30, 2023. For the second quarter, the company reported net loss was USD 0.275722 million compared to USD 0.27393 million a year ago.

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), 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], 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), Chilean Cobalt Corp. (COBA), 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], Galileo [ASX:GAL], Alliance Nickel [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], IGO Limited [ASX:IGO] (OTCPK:IIDDY), Lion Rock Resources (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 Battery Metals [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

August saw cobalt spot prices flat and LME inventory was also flat the past month.

Highlights for the month were:

• Glencore stockpiled cobalt in first half to support prices. Glencore said it would consider adding to its cobalt stockpiles and cut production to support cobalt prices. Glencore announces USD1.2 billion share buyback program.
• Huayou Cobalt and LG Energy Solution join forces to establish battery closed-loop partnership.
• Trafigura's $600 million cobalt play faces cash crunch in Congo - Cobalt prices have slumped and project has overshot its budget.
• Jervois Global 'moderates' Sao Miguel Paulista refinery restart; moves to re-align project portfolio.
• Electra closes private placements for gross proceeds of $21.5 million.
• Cobalt Blue announced Demonstration Plant success. Refinery Development Program launched.
• Alliance Nickel Limited entered into a binding offtake agreement and share subscription agreement with Stellantis N.V. in relation to future offtake from the NiWest Nickel Cobalt Project. Stellantis subscribed for A$15 million in new equity.
• TMC - Congressional Leaders urge President Biden and the DoD to consider polymetallic nodules for U.S. critical mineral supplies and national security.

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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