Cobalt Miners News For The Month Of June 2020

Cobalt Miners News For The Month Of June 2020

Welcome to the June 2020 cobalt miner news. The past month saw cobalt prices slightly lower and a not so busy month for the cobalt producers but plenty of good news from the cobalt juniors.

Cobalt price news

As of June 19, the cobalt spot price was US$13.09/lb, slightly lower than US13.38/lb last month. The LME cobalt price is US$28,850/tonne. LME Cobalt inventory is 602 tonnes, about the same as last month (603 tonnes). 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 13.09

5 Year Cobalt Prices - Cobalt Price Chart

Source: InfoMine.com

Cobalt demand and supply

On June 16 Investing News reported:

Top Cobalt production by country….. According to the latest US Geological Survey numbers, global supply decreased in 2019, down slightly to 140,000 metric tons [MT] from 148,000 MT the previous year.

  • DRC – 100,000 MT
  • Russia – 6,100 MT
  • Australia – 5,100 MT
  • Philippines – 4,600 MT
  • Cuba – 3,500 MT
  • Madagascar – 3,300 MT
  • Papua New Guinea – 3,100 MT
  • Canada – 3,000 MT
  • S Africa – 2,400 MT
  • Morocco – 2,100 MT”

On June 19 Mining Weekly reported:

Electric vehicle rally to maintain demand for battery metals despite Covid-19. Although subdued as a result of Covid-19, demand for battery metals, including cobalt, lithium and copper, will remain strong as a result of growth in the global electric vehicles [EVs] market, business intelligence company CRU UK cobalt, lithium and battery markets senior analyst George Heppel said this week……However, Heppel pointed out that, interestingly, although the automotive market as a whole had been hit hard by Covid-19, the EV sector had actually had a few good months, all things considered.

Cobalt market news

On May 25 Smart Company reported:

Bill Gates and Richard Branson have their sights on the mining sector — and investment opportunities for startups abound. Among those leading the charge are tech billionaires Bill Gates, Jeff Bezos and Richard Branson — all backers of technology fund Breakthrough Energy Ventures [BEV]. Last year, BEV joined forces with hedge fund a16z to invest in mineral exploration company KoBold Metals and its search for ‘ethical’ cobalt. The billion-dollar fund was also instrumental in raising $20 million in Series A funding for Lilac Solutions, a mining technology company focused on transforming lithium production.

On June 4 Reuters reported:

Australian, India, sign joint deal on critical minerals. The agreement focuses on ways to increase bilateral trade, investment and research and development in critical minerals…… Australia is broadening its push to supply minerals such as lithium and rare earths to strategic trade partners after it signed several similar agreements with the United States in the past two years, most recently in November. Resources Minister Keith Pitt said in a statement that Australia has the potential to be one of the top suppliers of cobalt and zircon to India, being in the top three for global production of these minerals.

On June 15 Argus Media reported:

EV sales in 2020 to match 2019 despite Covid-19: IEA. Demand for battery metals such as lithium, nickel and cobalt will increase sharply. Demand is also expected to increase for other metals used in drive trains such as rare earths and metals used in charging stations, such as copper and steel.

Cobalt company news

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

On June 16 BNN Bloomberg reported:

Glencore Plc will sell cobalt to Tesla Inc. for use in vehicles being produced at new car plants in China and Germany, according to a person with knowledge of the matter. The deal could involve Glencore supplying as much as 6,000 tons of the metal a year for lithium-ion batteries that power electric cars. The agreement is in line with other recent contracts the trading giant-cum-miner has struck, including a four-year deal in February to supply as much as 21,000 tons to battery producer Samsung SDI Co. Ltd……Glencore last year agreed multi-year plans to sell about 30,000 tons of cobalt to SK Innovation Co. and at least 61,200 tons to China’s GEM Co. BMW AG also agreed to buy cobalt directly from Glencore’s Murrin Murrin mine in Australia.

On June 19, Glencore announced:

Investigation by the Office of the Attorney General of Switzerland. Glencore has today been informed by the Office of the Attorney General of Switzerland [OAG] that it has opened a criminal investigation into Glencore International AG for failure to have the organizational measures in place to prevent alleged corruption in the Democratic Republic of Congo currently under investigation by the OAG.

Katanga Mining [TSX:KAT] (OTCPK:KATFF)(To be amalgamated into Glencore)

On June 3, Katanga Mining announced:

Katanga Mining completes amalgamation transaction. Pursuant to the Amalgamation, Shareholders other than Glencore International AG (“GIAG”) are entitled to receive C$0.16 in cash for each pre-Amalgamation common share of the Company (“Common Share”), for aggregate consideration of C$52,722,015.68. As a result of the Amalgamation, the Company is now wholly-owned, directly or indirectly, by GIAG.

Note: In April 2020 it was announced that Glencore would take Toronto-listed Katanga Mining private, with an offer of C0.16 per share.

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

No news for the month.

Zheijiang Huayou Cobalt [SHA:603799]

On May 28 The Financial times reported:

China’s top cobalt producer halts buying from Congo miners…..China’s biggest cobalt producer is to stop buying from individuals in the Democratic Republic of Congo, bowing to pressure from customers and rights groups concerned about child labour in the country’s informal mining sector……In December it was named alongside technology companies including Apple, Dell and Microsoft in a US class-action lawsuit filed on behalf of families of children killed or injured while mining cobalt in the central African nation……Most of the DRC’s cobalt is shipped to China to be refined and processed. Up to 20 per cent of its output comes from individual miners, who dig for the metal by hand without safety protection. Despite the pullback, Huayou aims to produce 30,000 tonnes of cobalt this year, mainly from its industrial mines in the DRC but also through recycling used batteries.

Jinchuan Group International Resources [HK:2362]

On June 18, Jinchuan Group International Resources announced: “Poll result of the annual general meeting held on 18 June 2020.”

Chemaf (subsidiary of Shalina Resources)

No news for the month.

GEM Co Ltd [SHE: 002340]

No cobalt related news for the month.

Investors can read more about GEM Co in my 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 June 15, Umicore SA announced:

EIB grants €125 million loan to support Umicore’s European rechargeable battery materials activities. Umicore has concluded a € 125 million loan agreement with the European Investment Bank [EIB]. The proceeds of the loan, which has a maturity of eight years, will finance part of Umicore’s investment in the cathode materials plant in Nysa, Poland. Once completed, this greenfield plant will supply the European operations of Umicore’s global battery cell and automotive customers.

On June 15, Umicore SA announced:

Umicore launches an offering of €500 million in convertible bonds due 2025……The net proceeds of the offering will be used for general corporate purposes and to fund Umicore’s strategic developments in the areas of clean mobility materials and recycling. This offering will further strengthen and diversify Umicore’s funding structure by complementing the €1.1 billion of medium- and long-term, fixed-rate private placement debt secured in recent years.

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

On June 12, Sumitomo Metal Mining Co. announced:

Towards the creation of a Solar Energy Society for 2050 start of initiatives based on a vision co-creation partnership with Tohoku University.

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

On May 31, MMC Norilsk Nickel announced:

Clean-up underway after accidental diesel spill at Norilsk nickel’s Heat and Power Plant №3…..HHP-3 is operated by Norilsk Nickel’s subsidiary, Norilsk-Taymyr Energy Company [NTEC].

On June 19, MMC Norilsk Nickel announced:

Nornickel disposes of Honeymoon Well nickel project in Australia. Nornickel……announces that through its Australian subsidiary, MPI Nickel Pty Ltd, it has entered into a definitive agreement with BHP Billiton Nickel West Pty Ltd (“BHP” or “the Buyer”), a wholly owned subsidiary of BHP Group Limited, to sell its Honeymoon Well Nickel Project (“the Project”) for an undisclosed amount.

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

On June 10, Sherrit International announced:

Sherritt announces amendments to its transaction to improve its capital structure and additional noteholder support.

Conic Metals Corp. [TSXV:NKL]

Conic Metals was formed from the Cobalt 27 spin-out. Conic Metals offers broad exposure to nickel and cobalt through a 8.56% JV interest in Ramu, 11 royalty investments, and an equity share of ~7% of Giga Metals Corporation.

No news for the month.

Investors can view my CEO interview here.

Possible mid-term producers (after 2022)

First Cobalt [TSXV:FCC] (OTCQB:FTSSF)

No news for the month.

Upcoming catalysts include:

  • Late 2021 or 2022 – Possible to have their North American cobalt refinery operational with ore feed from Glencore.

Investors can view the company presentations here.

Jervois Mining [ASX:JRV] [TSX-V: JRV] (OTC: JRVMF) [FRA: IHS] (merged with eCobalt Solutions [TSX:ECS] (OTCQX:ECSIF))

On June 4 Jervois Mining reported: “Jess Birtcher appointed acting CFO, based in United States.”

Upcoming catalysts include:

  • Q2 2020 – BFS due.
  • 2020 – Off-take agreements, project funding.

Fortune Minerals [TSX:FT] (OTCQB:FTMDF)

On June 8, Fortune Minerals announced: “Fortune Minerals announces COVID-19 cost saving measures and resumption of Tlicho all-season road construction.”

Investors can read the latest company presentation here.

Upcoming catalysts include:

  • 2020 – 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.

On June 19, Clean TeQ announced:

Clean TeQ Sunrise Project Update……Project Execution Plan: The Company has been progressing the Project Execution Plan [PEP] in conjunction with Fluor Australia Pty Ltd, part of the Fluor global engineering group headquartered in Irving, Texas. Financing Update: The partnering process the Company has been running, with the support of Macquarie Capital, remains on-going. Although good interest has been expressed by a number of parties through that process, and engagement across the EV supply chain continues, to date the Company has not been able to secure an investment partner for the Project.

Investors can also read the latest company presentation here.

Upcoming catalysts include:

2020 – Possible further off-take agreements and project funding/partnering.

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

On June 12, Australian Mines announced: “S&P Dow Jones indices announces June 2020 quarterly rebalance of the S&P/ASX indices.” Australian Mines was removed from the All Ordinaries Index.

On June 19, Australian Mines announced:

Sconi offtake sample production runs completed. Advanced battery materials development company Australian Mines Limited can confirm the production runs to supply battery-grade cobalt sulphate and nickel sulphate to potential offtake partners…..have been completed……the ongoing negotiations to secure binding offtake agreement [s] and financing for Australian Mines’ 100%-owned Sconi Cobalt-Nickel-Scandium Project in North Queensland, Australia. These negotiations continue to make good progress but are now expected to extend into the second half of calendar year 2020, as a consequence of the disruption caused by the COVID-19 pandemic.

Investors can read my update article here, my CEO interview here, or view the latest company presentation here.

Upcoming catalysts include:

  • 2020 – Thackaringa drill results. Possible Sconi off-take partners or financing.

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 May 28, Ardea Resources announced:

KNP R&D advances. Ardea Resources Limited [Ardea] is developing its Kalgoorlie Nickel Project [KNP], starting with the flagship Goongarrie Nickel Cobalt Project [GNCP] which is a “state-of-the-art” battery metals and new technology minerals project. Innovative Research and Development [R&D] is a key pillar of the metallurgical programs completed by Ardea. The quality of the KNP/GNCP research has been recognised with a $2 million R&D Tax Offset being received from the Federal Government Australian Tax Office.

Investors can view their latest company presentation here, my update Ardea article here, and CEO interview here.

Upcoming catalysts include:

  • 2020 – Possible off-take partner and funding for the KNP Project.

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

In total Cobalt Blue currently has 79.5kt 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 June 2 Cobalt Blue published:

Australia’s opportunity in the global cobalt industry – featuring Cobalt Blue…..The company’s sights are set on becoming a pioneer for Australia’s domestic battery industry through its Broken Hill cobalt project in New South Wales. Broken Hill is designed to operate as both a cobalt mine and refinery that produces battery-ready cobalt sulphate, which will give the company significant advantages and control over its resource, according to Cobalt Blue chief executive Joe Kaderavek. “We are working collaboratively via a three-year partnership with the Australian Government’s Future Battery Industries Project and major domestic lithium, nickel and manganese producers to assess whether Broken Hill cobalt can supply a future Australian battery industry,” Kaderavek tells Australian Mining.

Upcoming catalysts include:

  • Mid 2020 – Pilot plant commissioning. Ore reserve estimate update.
  • Q1 2021 – Demonstration plant.
  • Q1 2022 – Feasibility Study & project approvals. Final Investment decision.

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 May 26, Havilah Resources announced: “Havilah Resources Limited activities report for the 3 months ended 30 April 2020.

  • Encouraging gold (and rare earth element [REE]) aircore drilling results from West Kalkaroo, including:
  • 20 metres of 6.3 g/t gold in the saprolite gold zone, more than double the average gold grades obtained in saprolite gold intersections in nearby earlier drillholes.
  • 5 metres of 4.56 g/t gold and 3 metres of 5.51 g/t gold from a horizontal clay-hosted base of Tertiary gold layer.
  • Highly elevated total rare earth oxide (TREO) levels of 6,746 ppm over a 10 metre interval.
  • REE discovery potential on Havilah’s extensive tenement holding in the Curnamona Craton was supported by an independent expert, Emeritus Professor Ken Collerson. REE are of particular relevance given the Australian Government’s recent efforts in promoting the strategic importance and development of critical minerals resources within Australia.
  • Memorandum of Understanding signed with Port Augusta Operations Pty Ltd for the potential future use of an iron ore port and transhipment facility on the eastern side of the Spencer Gulf, South Australia. The port facility is well located with respect to Havilah’s iron ore projects and an existing railway line that links Broken Hill with Port Augusta, which would minimise logistics capital expenditure.

On June 1, Havilah Resources announced: “REE collaborative research project with University of South Australia.” Highlights include:

  • “A collaborative research agreement with the University of South Australia (UniSA) will investigate recovery of by-product rare earth elements [REE] from Havilah’s West Kalkaroo saprolite gold ore.
  • Specialised expertise, with relevant experience in recovery of REE by flotation, is available to carry out the experimental work at a well equipped metallurgical research laboratory in South Australia.
  • A successful research outcome could potentially see a new supply of the strategic and critical minerals REE as a by-product of long-term copper-gold mining in northeastern South Australia.”

On June 5, Havilah Resources announced: “New Mutooroo cobalt resource.” Highlights include:

  • “A new cobalt Inferred JORC Mineral Resource for Mutooroo increases total cobalt metal contained in sulphide ore to 20,000 tonnes (144% increase).
  • Expands Havilah’s total cobalt metal inventory to 43,400 tonnes (Kalkaroo + Mutooroo), an increase of 37%, with appreciable upside potential.
  • Cobalt-bearing iron sulphides can be recovered during the copper sulphide concentration process.
  • Confirms Mutooroo as one of the highest grade sulphide cobalt deposits associated with copper in Australia.”

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.

Upcoming catalysts include:

  • 2020 – Kalkaroo – Updated PFS due.

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

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

No news for the month.

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:

  • Q3 2020 – PFS due.

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.

Investors can read a company investor presentation here.

Cassini Resources [ASX:CZI] [GR:ICR] (OTC:CSSQF) – “To be acquired by OZ Minerals [ASX:OZL] (OTCPK:OZMLF)”

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 May 28, Cassini Resources announced: “Yarawindah Ni-Cu-PGE Project exploration update.” Highlights include:

  • “Visually encouraging Ni-Cu sulphide intercepts in first two drill holes.
  • Detailed surface EM and infill soil results further strengthen XC06 target.
  • Drill program re-prioritised to drill XC06 anomaly as soon as possible.”

On June 22, Cassini Resources announced: “OZ Minerals to acquire Cassini Resources.” Highlights include:

  • “OZ Minerals to acquire Cassini Resources via a Scheme of Arrangement, consolidating its ownership of the West Musgrave Project to 100%.
  • Cassini to undertake an inter-conditional demerger of its Yarawindah Brook and Mount Squires assets into a new company, Caspin Resources Limited (”Caspin”) which intends to applyto list on the ASX.
  • Transaction is mutually beneficial: OZ Minerals gains maximum optionality regarding development of the West Musgrave Project. Cassini shareholders receive immediate value for the West Musgrave Project and ongoing exposure to upside from future West Musgrave Project value, as well as Yarawindah Brook and Mount Squires, via Caspin.
  • In addition to Caspin shares, Cassini shareholders will receive consideration with an implied value of A$0.16 per share comprised of: A$0.15 in the form of one new OZL share for every 68.5CZI shares held. A$0.01 per share cash capital return to be paid out of Cassini’s existing cash balance.
  • Caspin may also receive additional cash payment [S] of up to A$20 million in total in the event of a potential future sale of all or a portion of OZ Minerals’ interest in West Musgrave (if such future sale is above the implied value of this Transaction).
  • The A$0.16 per share, which excludes the Caspin shares, represents the following premiums to recent Cassini Resources trading: A 31% premium to 1-day VWAP. A 31% premium to 1-month VWAP. A 55% premium to 3-month VWAP.
  • Board of Cassini has unanimously recommended the Transaction and confirmed their intention to vote in favour of all resolutions.
  • Major shareholders of Cassini (representing 17.4% of issued capital), including Tinci Materials, have confirmed to Cassini their intention to vote in favour of the Transaction.”

Canada Silver Cobalt Works Inc [TSXV:CCW] (OTCQB:CCWOF)

On May 28, Canada Silver Cobalt Works Inc. announced:

Canada Silver Cobalt releases maiden NI43-101 mineral resource estimate for Castle East Robinson Zone…..Castle East is part of Canada Silver Cobalt’s 100%-owned, 78 sq. km Castle Property also featuring the Castle mine…..Zones 1A and 1B have an average silver grade of 8,582 g/t (250.2 oz/ton) in a combined 27,400 tonnes of material for a total of 7,560,200 Inferred ounces (silver) using a cut-off grade of 258 g/t AgEq.

Source

On June 15, Canada Silver Cobalt Works Inc. announced:

Canada Silver Cobalt ramps up drilling at Castle East Discovery, closes $1.2 million private placement.

Canada Nickel [TSXV:CNC]

On May 27, Canada Nickel announced: “Canada Nickel announces extension of main zone by 1.5 kilometres and East Zone by 400 metres at Crawford Nickel-Cobalt-Palladium Project.” Highlights include:

  • “Hole CR20-33 extended East Zone nickel and PGM mineralization along strike by 400 metres to the east (to 2.1 kilometres) and yielded another higher grade intersection with elevated PGM grades–38 metres of 0.37% nickel and 0.17 g/t palladium + platinum (0.12g/t Pd, 0.05g/t Pt) within 315 metres of 0.25% nickel from 120 metres downhole.
  • Hole CR20-32 extended Main Zone nickel mineralization by 1.5km along strike to the north(to 3.2 km) and yielded 243 meters of 0.25% nickel and 0.013% cobalt from 390 metres downhole and ended in mineralization with the final 57 metres grading 0.30% nickel and 0.013% cobalt. (Assays from PGM portion of this hole were announced in Canada Nickel press release dated May 19, 2020.).”

Castillo Copper [ASX:CCZ]

No cobalt related news for the month.

Investors can view my CEO interview here, and an investor presentation 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.

No cobalt related news for the month.

Investors can view the company presentations here.

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], Alloy Resources [ASX:AYR], Artemis Resources Ltd [ASX:ARV] (OTCPK:ARTTF), Auroch [ASX:AOU] [GR:T59], Azure Minerals [ASX:AZS] (OTC:AZRMF), Bankers Cobalt [TSXV:BANC] [GR:BC2] (NDENF), Blackstone Minerals [ASX:BSX], BHP (NYSE:BHP), Bluebird Battery Metals Inc. [TSXV:BATT] (OTCPK:BBBMF), Brixton Metals Corporation [TSXV:BBB](OTC:BXTMD), Canadian International Minerals [TSXV:CIN], Carnaby Resources [ASX:CNB], Celsius Resources [ASX:CLA] [GR:FX8], Centaurus Metals [ASX:CTM], Cobalt Power Group [TSX:CPO], Cohiba Minerals [ASX:CHK], Corazon Mining Ltd [ASX:CZN], Cruz Cobalt [CSE:CRUZ](OTCPK:BKTPF), Cudeco Ltd [ASX:CDU] [GR:AMR], Dragon Energy [ASX:DLE], European Cobalt Ltd. [ASX:EUC], First Quantum Minerals (OTCPK:FQVLF), Fuse Cobalt Inc [CVE:FUSE] (WCTXF), 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), Karora Resources Inc. (TSX:KRR) (OTCQX:KRRGF) (formerly RNC Minerals), King’s Bay Res (OTC:KBGCF) [TSXV:KBG], Latin American Resources, 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), 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), Resolution Minerals Ltd [ASX:RML], Sienna Resources [TSXV:SIE], (OTCPK:SNNAF), and Victory Mines [ASX:VIC].

Conclusion

June saw cobalt prices slightly lower and LME inventory about the same.

Highlights for the month were:

  • US Geological Survey – Global cobalt supply decreased in 2019, down slightly to 140,000 metric tons [MT] from 148,000 MT the previous year.
  • CRU – Electric vehicle rally to maintain demand for battery metals despite Covid-19. IEA – EV sales in 2020 to match 2019 despite Covid-19.
  • Bill Gates and Richard Branson have their sights on the mining sector.
  • Australian, India, sign joint deal on critical minerals.
  • IEA – Demand for battery metals such as lithium, nickel and cobalt will increase sharply.
  • Glencore will sell as much as 6,000 tpa cobalt to Tesla Inc. for use in vehicles being produced at new car plants in China and Germany. Swiss Attorney General investigating Glencore for failure to have the organizational measures in place to prevent alleged corruption.
  • Katanga Mining completes amalgamation transaction with Glencore.
  • Huayou Cobalt – China’s top cobalt producer halts buying from individual (artisinal) Congo miners.
  • Umicore – EIB grants €125 million loan to support Umicore’s European rechargeable battery materials activities. Umicore launches an offering of €500 million in convertible bonds due 2025.
  • Cobalt Blue – “We are working collaboratively via a three-year partnership with the Australian Government’s Future Battery Industries Project and major domestic lithium, nickel and manganese producers to assess whether Broken Hill cobalt can supply a future Australian battery industry.”
  • Havilah Resources recent drilling intersects 20 metres of 6.3 g/t gold as well as highly elevated total rare earth oxide (TREO) levels of 6,746 ppm over a 10 metre interval. Havilah’s total cobalt metal inventory grows to 43,400 tonnes (Kalkaroo + Mutooroo).
  • OZ Minerals to acquire Cassini Resources at A$0.16 per share (mostly as OZ Minerals shares, 68.5 CZI:1 OZL). Existing Cassini Resources shareholders also receive a new spinout called Caspin Resources (Yarawindah Brook and Mount Squires assets).
  • Canada Silver Cobalt releases maiden NI43-101 mineral resource estimate for Castle East Robinson Zone. Zones 1A and 1B have an average silver grade of 8,582 g/t with a total of 7,560,200 Inferred ounces (contained silver) using a cut-off grade of 258 g/t AgEq.
  • Canada Nickel announces extension of main zone by 1.5 kilometres and East Zone by 400 metres at Crawford Nickel-Cobalt-Palladium Project.

As usual all comments are welcome.

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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