Cobalt prices continue to rise on increasing demand for electric vehicles. Tesla (NADASQ:TSLA) remains a hot topic, and many investors are closely watching for the company’s next move — most recently, CEO Elon Musk confirmed that he will announce locations for “probably four” gigafactories later in 2017.
That interest is not undeserved. Benchmark Mineral Intelligence analyst Caspar Rawles told the Investing News Network last month that in 2016 megafactory demand for cobalt was about 46,000 tonnes, but by 2020 it will increase to 76,000 tonnes. He added, “there’s going to be a lot of growth in the coming years.”
In light of those developments, investors are growing more and more interested in cobalt stocks. To help provide a picture of which cobalt-focused companies are making progress this year, we’ve put together a brief overview of four cobalt stocks on the TSX that have seen share price gains year-to-date. Read on to learn what they’ve been up to in 2017.
1. Katanga Mining (TSX:KAT)
Current price: $0.39; year-to-date gain: 178.57 percent
Major miner Glencore (LSE:GLEN) increased its stake in Katanga Mining to about 86.33 percent earlier this year. The company operates a large-scale copper-cobalt mine complex in the Democratic Republic of Congo through two joint ventures called Kamoto Copper Company and DRC Copper and Cobalt Project.
Katanga has released little news so far this year. In 2015, the company suspended copper and cobalt processing due to construction activities related to its whole ore leach project. The suspension continued through the first quarter of 2017, and production is not expected to resume until the project is commissioned; that process is expected to commence in Q4 2017.
2. eCobalt Solutions (TSX:ECS)
Current price: $0.97; year-to-date gain: 79.63 percent
eCobalt Solutions is focused on providing battery-grade cobalt salts that are ethically sourced, environmentally sound and produced safely and responsibly in the US. eCobalt’s primary asset is its Idaho cobalt project, situated in Lemhi County, Idaho.
In February, the company closed a $17.25-million bought-deal financing. In March, eCobalt provided an operational update for its Idaho project, noting that it is expecting final feasibility study results to be ready by Q2.
3. Fortune Minerals (TSX:FT)
Current price: $0.19; year-to-date gain: 52 percent
Fortune Minerals expects to benefit from the development of its NICO cobalt-gold-bismuth-copper project, located in Canada’s Northwest Territories. The plan is for a bulk concentrate from NICO to be shipped to a planned metals processing plant in Saskatchewan. The company is positioned to become a Canadian producer of battery-grade cobalt chemicals with gold and bismuth co-products.
In January, Canada’s federal government announced that it will pay 25 percent of the cost of building an all-season road that will help provide access to NICO. More recently, in March, Fortune Minerals closed a bought-deal financing for a total of $6.45 million The following month, the company announced that it continues to work on updating a feasibility study for NICO to support financing for the project.
4. Lundin Mining (TSX:LUN)
Current price: $6.94; year-to-date gain: 8.44 percent
The company completed the sale of its 24-percent stake in the world-class Tenke Fungurume copper-cobalt mine in the Democratic Republic of Congo in April, but still holds interest in the Freeport Cobalt Oy business, which includes a cobalt refinery located in Finland. In April, the company reported that its attributable share of Q1 production at Tenke Fungurume included 12,932 tonnes of copper cathode and 861 tonnes of cobalt in hydroxide.
The data for this article was retrieved on May 9, 2017 using The Globe and Mail’s market data filter. Only TSX-listed cobalt companies with market capitalizations greater than $50 million are included.
This is an updated version of an article originally published by the Investing News Network in 2016.
Is there a top-gaining cobalt stock on the TSX that we missed? Tell us in the comments below — and don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Fortune Minerals is a client of the Investing News Network. This article is not paid-for content.
This article is updated each quarter. Please scroll the top for the most recent information.
Top Cobalt Stocks 2016: TSX Top Gainers
By Pia Rivera, 2017
Cobalt demand is growing. According to research and consultancy firm CRU, global consumption for refined cobalt will reach 100,000 tons in 2017, with demand to grow at an average rate of 5 percent annum for the next 10 years.
We took a look at these cobalt mining companies listed on the TSX who had positive gains in 2016:
eCobalt Solutions (TSX:ECS)
eCobalt Solutions is focused on providing battery grade cobalt salts that are ethically sourced and environmentally sound, produced safely and responsibly in the United States. eCobalt’s primary asset is its 100 percent owned Idaho Cobalt Project (ICP) located in Lemhi County, Idaho.
The company commissioned a feasibility study in September 2016, with the final report expected in Q1 2017.
eCobalt’s stock has gained 580 percent in 2016.
Fortune Minerals (TSX:FT)
Fortune Minerals of London, Ontario, expects to benefit from the development of its NICO Cobalt-Gold-Bismuth-Copper project, in the Northwest Territories. NICO, which is comprised of a planned mine and mill and a refinery in Saskatchewan, is positioned to become a Canadian producer of battery-grade cobalt chemicals with 1.1 million ounces of gold and 12 per cent of global bismuth reserves as co-products.
More than $115 million has been spent by Fortune in advancing this project, and the company has a positive feasibility study and environmental assessment approvals for both the mine and concentrator.
Fortune Minerals’ stock has gained 316.67 percent in 2016.
First Quantum Minerals (TSX:FM)
First Quantum Minerals is a well-established and growing metals and mining company producing mainly copper, gold, nickel and zinc. The Company’s assets are located in Zambia, Spain, Mauritania, Australia, Finland, Turkey, Panama, Argentina and Peru, and focuses on cobalt as a byproduct of its Ravensthorpe nickel mine. The mine achieved commercial production on December 28, 2011 and is 100 percent owned by First Quantum.
First Quantum announced comparative earnings of $38 million and cash flows from continuing operating activities of $304 million for Q2 2016. The company also reported that it ended the quarter with $895 million in unrestricted cash, $593 million in committed, undrawn facilities, and a working capital of $553 million.
First Quantum Minerals’ stock has gained 221 percent in 2016.
Lundin Mining (TSX:LUN)
Lundin Mining operates in Chile, the USA, Portugal, and Sweden. The company primarily produces copper, nickel and zinc, with cobalt as a byproduct.
The company holds a 24 percent stake in the world-class Tenke Fungurume copper-cobalt mine in the Democratic Republic of Congo (DRC) and in the Freeport Cobalt Oy business, which includes a cobalt refinery located in Kokkola, Finland.
In September, Lundin Mining updated its mineral resource and reserve estimates for its Candelaria Mining Complex in Chile: total measured and indicated mineral resources have increased to 689.0 Mt at 0.64 percent copper, from 643.6 Mt at 0.63 percent copper in July 2015.
Lundin Mining’s stock has gained 68 percent in 2016.
This is an updated version of an article originally published on the Investing News Network in 2016.
Are there any stocks we missed? Tell us in the comments below – and don’t forget to follow us @INN_Resource for real-time news updates!
Editor’s note: In an earlier version of this article, we included Caledonia Mining (TSX:CAL) in error. The company no longer has interests in the cobalt-copper exploration project in Zambia, and have thus taken them out of this list. We apologize for this error.
Securities Disclosure: I, Pia Rivera, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: eCobalt Solutions and Fortune Minerals are clients of the Investing News Network. This article is not paid for content.