Top Canadian Cobalt Stocks of 2020

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While the cobalt market has remained relatively quiet in 2020, demand for the battery metal is still expected to surge in the coming years, driven by increased uptake of electric vehicles.

As the electric vehicle revolution continues to expand, demand for key battery metals like lithium, graphite and cobalt is expected to continue following suit accordingly.

Below we run through the three top cobalt stocks on the TSX and TSXV by share price performance. All year-to-date and share price information was obtained on December 16, 2020, using TradingView’s stock screener, and all companies listed had market caps above C$10 million at that time.

1. Sherritt International (TSX:S)

Current price: C$0.42; year-to-date gain: 121.05 percent

Canada- and Cuba-focused Sherritt International is one of the world’s top producers of nickel from lateritic sources. Cobalt is mined as a by-product at the company’s nickel mines, and Sheritt is also Cuba’s largest independent energy producer, with oil and power operations in the country.

Like many companies, Sherritt saw its share price bottom in mid-March. It’s largely trended up since then, and reached its highest point of the year in mid-December at C$0.43.

The top cobalt stock has released a slew of news during that time. Notably, at the end of August it closed a transaction designed to improve its capital structure. Sherritt’s latest quarterly results indicate that while nickel and cobalt output from its Moa joint venture was down year-on-year in Q3, it remains on track to meet guidance for the year.

2. Jervois Mining (TSXV:JRV)

Current price: C$0.35; year-to-date gain: 81.58 percent

TSXV- and ASX-listed Jervois Mining describes itself as a leading cobalt company with significant nickel and copper exposure. The top cobalt stock’s flagship asset is the US-based Idaho Cobalt Operations. Jervois is also developing the Nico Young nickel-cobalt deposit in New South Wales, Australia, and holds interests in exploration-stage assets in Uganda.

Much of the company’s share price momentum has been in the second half of the year. During that time, Jervois’ activities include acquiring a Brazil-based nickel and cobalt refinery, and releasing a bankable feasibility study (BFS) for its Idaho Cobalt Operations. The BFS confirms the potential for the project to become a near-term, low-cost cobalt-copper-gold mine.

The company also closed an oversubscribed AU$45 million equity raise in mid-October.

3. First Cobalt (TSXV:FCC)

Current price: C$0.19; year-to-date gain: 32.14 percent

First Cobalt is a vertically integrated cobalt exploration and development company with three assets located in Idaho, US, and Ontario, Canada. The company is focused on developing a supply of battery-grade cobalt in North America for the rapidly growing electric vehicle market.

The company’s Ontario-based refinery is the only permitted primary cobalt refinery in North America, and could produce 25,000 tonnes of cobalt sulfate per year from third party feed.

First Cobalt’s share price has remained fairly steady throughout 2020, experiencing an uptick in December. It has released a steady stream of news throughout the year, with much of it focused on its refinery. In May, it released the results of a refinery expansion feasibility study, announcing a $2.1 million work program to advance the refinery soon after. Later in the year, First Cobalt reduced the refinery’s operating costs by 13 percent and shared a life cycle assessment.

Most recently, the top cobalt stock experienced its highest share price of the year after receiving C$10 million in funding from the governments of Canada and Ontario.

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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: First Cobalt is a client of the Investing News Network. This article is not paid-for content.