Cobalt is a key component of lithium-ion batteries, which are used to power electric vehicles, and demand for the metal is expected to soar as these vehicles become more common.
At the moment, cobalt supply isn’t sufficient to meet this impending demand, and prices for the metal are on the rise. As of mid-February, cobalt prices were up nearly 50 percent since September 2016, and currently a slowdown doesn’t seem to be in the cards. As Benchmark Minerals Intelligence analyst Caspar Rawles said via email, “battery demand for cobalt [is forecast] to go from 50,000 tonnes in 2016 to 80,000 tonnes by the end of 2020.”
Given those circumstances, many companies are entering the cobalt market in hopes of becoming suppliers. To help investors get an idea of the current cobalt company landscape, we’ve put together a list of TSXV-listed cobalt stocks with year-to-date gains. All companies listed have a market cap of at least $10 million.
Read on to learn more about these companies, or click here to see our list of TSX-listed cobalt companies. If we’ve missed a cobalt company that meets the above criteria, please let us know in the comments.
CobalTech Mining (TSXV:CSK)
CobalTech Mining’s main asset is the past-producing Duncan Kerr property. Located outside of Cobalt, Ontario, it’s in an area known for a unique type of mineralization composed of quartz-carbonate veins enriched in silver-cobalt-nickel-bismuth-arsenic.
So far this year the company has acquired a slew of additional properties, including nine past-producing mines near Duncan Kerr and eight cobalt properties in Quebec. Most recently, CobalTech signed a letter of intent to acquire a fully permitted cobalt processing facility in Ontario.
Year-to-date CobalTech’s share price has increased 52.08 percent. It is currently sitting at $0.36.
Cruz Cobalt (TSXV:CUZ)
Cruz Cobalt is engaged in acquiring and developing cobalt assets across the globe. The company recently acquired numerous high-grade cobalt assets in North America, including seven cobalt projects in Canada and one in the US. Its share price is currently at $0.26, up 103.85 percent year-to-date.
In February, the company announced that it is making an application for an exploration permit for its Bucke cobalt prospect. Bucke is in the vicinity of Cobalt, Ontario, and the permit will cover “mechanized drilling, mechanized stripping, pitting and trenching of bedrock and line cutting.”
First Cobalt (TSXV:FCC)
First Cobalt, formerly Aurgent Resource, is an exploration-stage company whose main focus is the South Lorraine cobalt claim group. The claim group is in a former mining camp located 25 kilometers south of Cobalt, Ontario. The company also owns the Dickens Lake gold property in Saskatchewan.
At the beginning of February, the company announced plans to raise up to $3 million via a non-brokered private placement. It later increased the private placement to up to $6 million. So far this year First Cobalt’s share price is up 76.92 percent at $0.69.
Leading Edge Materials (TSXV:LEM)
Scandinavia-focused Leading Edge Materials, formerly Flinders Resources, acquired Tasman Metals in August 2016 and now holds the Woxna graphite facility as well as the Norra Karr rare earths project. The Woxna graphite facility, which is currently permitted to feed 100,000 tonnes of graphitic rock per year, operated in 2014 and 2015, and is now maintained on a production-ready basis.
In addition to those projects, Leading Edge holds two cobalt projects. It staked the Vena cobalt-copper project in Sweden in November 2016, and in February it staked the Kontio cobalt-copper project in Finland. Year-to-date Leading Edge’s share price has increased 37.25 percent and is now sitting at $0.70.
LiCo Energy Metals (TSXV:LIC)
LiCo Energy Metals conducts exploration for metals used in the production of lithium-ion batteries. It currently has four projects in Canada, the US and Chile. Three are lithium-focused projects, while the fourth, called Teledyne, is a cobalt project.
The company has been busy in 2017, and among other things has completed a geophysical program at Teledyne, which is situated near Cobalt, Ontario. It is now preparing for a drill program at that project. Year-to-date LiCo’s share price has increased 40.74 percent and is sitting at $0.19.
Power Americas Minerals (TSXV:PAM)
Power Americas Minerals, formerly Victory Ventures, is an exploration company focused on procuring, developing and exploring resource properties in North and South America. The company’s share price has jumped 314.29 percent year-to-date and is now at $0.145.
In January, the company entered into an option agreement to acquire a 100-percent interest in the Kittson cobalt property. The property is comprised of five unpatented mining claims totaling 68 units. It covers approximately 1,090 hectares, and includes two former mines. According to the company, the mines saw limited production and “differed from the typical Cobalt camp in that they possessed low silver grades, but were enriched in cobalt and gold.”
Sama Resources (TSXV:SME)
Sama Resources is an exploration company that’s currently focused on the Sampleau nickel-cobalt-copper project in West Africa. Sama’s projects are located adjacent to the large world-class nickel-cobalt laterite deposits of Sipilou and Foungouesso.
In January, the company completed a downhole geophysical survey to follow up on shallow high-grade nickel-copper-palladium intercepts at its Sampleu and Grata properties. Year-to-date the company’s share price has risen 81.25 percent and is now at $0.14.
Scientific Metals (TSXV:STM)
Scientific Metals is an exploration company focused on the acquisition and development of production-grade deposits of metals that are critical components of modern-day rechargeable batteries. Its Iron Creek cobalt property is located in Idaho along the Idaho Cobalt Belt.
This month, the company announced plans for 2017 work at Iron Creek. It also recently acquired 25 unpatented lode mining claims totaling 500 acres to the south extension of Iron Creek. Its share price is now at $0.51 and has jumped 183.33 percent since the beginning of the year.
Other companies to watch
The companies below have lower market caps than the ones mentioned above, but have seen share price gains of more than 100 percent year-to-date. Investors may also want to keep them on their radar:
- Castle Silver Resources (TSXV:CSR): The company has a portfolio of high-grade past-producing silver and cobalt properties in Ontario’s Gowganda and Cobalt mining camps. Its share price has increased 228.57 percent year-to-date and is now at $0.23.
- Cobalt Power Group (TSXV:CPO): The company holds a number of properties in the region of Cobalt, Ontario, including the Smith cobalt project and extensions, and the Proteus and Kirk Lake cobalt projects. Its share price is now at $0.14, a 190-percent increase year-to-date.
- X-Terra Resources (TSXV:XTT): The company recently acquired a copper-cobalt property in Quebec. Its share price has jumped 130.3 percent year-to-date and is currently at $0.38.
Investors may also want to keep an eye on Global Energy Metals, which is building the world’s first battery minerals project bank to supply cobalt and other battery materials to the rechargeable battery market. It is due to begin trading on the TSXV under the symbol GEMC on March 1.
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Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Castle Silver Resources, Cruz Cobalt, Global Energy Metals, Leading Edge Materials and LiCo Energy Metals are clients of the Investing News Network. This article is not paid-for content.