- AustraliaNorth AmericaWorld
Investing News NetworkYour trusted source for investing success
Cardiol Therapeutics
Dynasty Gold
Black Swan Graphene
Altech Batteries
- Lithium Outlook
- Oil and Gas Outlook
- Gold Outlook Report
- Uranium Outlook
- Rare Earths Outlook
- All Outlook Reports
- Top Generative AI Stocks
- Top EV Stocks
- Biggest AI Companies
- Biggest Blockchain Stocks
- Biggest Cryptocurrency-mining Stocks
- Biggest Cybersecurity Companies
- Biggest Robotics Companies
- Biggest Social Media Companies
- Biggest Technology ETFs
- Artificial Intellgience ETFs
- Robotics ETFs
- Canadian Cryptocurrency ETFs
- Artificial Intelligence Outlook
- EV Outlook
- Cleantech Outlook
- Crypto Outlook
- Tech Outlook
- All Market Outlook Reports
- Cannabis Weekly Round-Up
- Top Alzheimer's Treatment Stocks
- Top Biotech Stocks
- Top Plant-based Food Stocks
- Biggest Cannabis Stocks
- Biggest Pharma Stocks
- Longevity Stocks to Watch
- Psychedelics Stocks to Watch
- Top Cobalt Stocks
- Small Biotech ETFs to Watch
- Top Life Science ETFs
- Biggest Pharmaceutical ETFs
- Life Science Outlook
- Biotech Outlook
- Cannabis Outlook
- Pharma Outlook
- Psychedelics Outlook
- All Market Outlook Reports
Top 3 Canadian Cobalt Stocks in 2023 (Updated May 2023)
What are the top cobalt stocks so far in 2023? These TSX- and TSXV-listed cobalt companies have all seen year-to-date share price increases.
Cobalt prices reached a four year high and 2022 peak of US$82,000 per metric ton (MT) last May, but have fallen since then due to a supply/demand disparity. The metal is now sitting just under US$35,000.
While overall demand is still up compared to Q1 of last year, supply also saw a big increase in 2022.
“We can expect electric vehicle (EV) and battery demand to continue solidly throughout Q2,” Roman Aubry of Benchmark Mineral Intelligence told the Investing News Network after Q1. “However, the demand growth has cooled, and inventories throughout the supply chain continue to meet downstream demand and restrain upstream spot demand.”
While supply is exceeding demand so far in 2023, much of the increase has come from the Democratic Republic of Congo (DRC). It's the top cobalt-producing nation, but many countries want to lower their dependence on it due to human rights concerns.
"This is a much more urgent supply chain concern, with downstream pressure to minimize DRC dependence,” Aubry added.
Below is a look at the three top cobalt stocks on the TSX and TSXV by share price performance so far this year. All year-to-date and share price information was obtained on April 27, 2023, using TradingView’s stock screener, and all companies listed had market caps above C$10 million at that time.
1. DLP Resources (TSXV:DLP)
Year-to-date gain: 93.48 percent; market cap: C$31.03 million; current share price: C$0.445
Exploration company DLP Resources is focused on base metals and cobalt projects in Southeast BC and Peru. It has three cobalt projects: the Hungry Creek, Copper Creek and Redburn Creek copper-cobalt projects. The company also has the Aurora porphyry copper-molybdenum project in Peru and a selection of other base metals properties.
Through much of Q1, DLP’s share price performed consistently, moving in the C$0.27 to C$0.30 range. At the end of February, the company released an exploration update, including results from its 2022 exploration at Hungry Creek and Copper Creek. The company also announced it was commencing its 2023 drill program at Aurora.
DLP's share price saw its first significant jump of the year to C$0.395 on March 21, two days before the company announced a non-brokered private placement to raise gross proceeds of C$1,500,000. According to the release, the company intends to use the money to explore five of its BC projects, including “drilling on its Copper Creek Project (and) follow-up sampling, prospecting and evaluation of the Hungry Creek and Redburn projects.”
DLP’s share price continued upwards to hit a year-to-date high of C$0.55 on April 3. After upsizing the placement to C$1,712,500 on March 24, the company closed it on April 6.
2. Nickel 28 Capital (TSXV:NKL)
Year-to-date gain: 12.73 percent; market cap: C$112.57 million; current share price: C$1.24
Nickel 28 Capital is a streaming and royalty company that has an 8.56 percent joint venture interest in the Ramu nickel-cobalt operation in Papua New Guinea and royalty agreements for 13 other projects. Nickel 28 is working towards the anticipated full repayment of its debt for the construction of Ramu in 2024, at which point it says it plans to use net cashflow for dividends and distributions.
Much of the news surrounding Nickel 28 in 2023 has centered around an unsolicited offer from shareholder Pelham Investment Partners and an ensuing conflict surrounding the company’s value and shareholder interests.
On February 8, Nickel 28 announced that a then-unnamed shareholder had proposed a US$15 million private placement financing with the company and demanded a response within two days. According to Nickel 28, the entity's other demands included the reconstitution of its board and the right to appoint two unnamed nominees. Nickel 28 stated that it was “strongly opposed to this opportunistic and coercive proposal,” which its board unanimously rejected.
On March 21, Pelham identified itself and announced a new plan, offering to purchase up to 10 million common shares of Nickel 28 from shareholders for C$1.20 per share, then a 22 percent premium. In the release, the firm said Nickel 28 had mischaracterized Pelham’s proposal. The firm detailed the concerns it had with Nickel 28’s management and said it was “prepared to take an active role in ensuring the future success of the Company, for the benefit of all shareholders.”
On the day of this news, Nickel 28’s share price jumped from C$0.98 to C$1.15 and saw a massive increase in trading volume. Nickel 28 responded the next day, urging shareholders to not sell Pelham their shares as the offer significantly undervalued the company.
Nickel 28 went on to release an in-depth statement on March 29 in which it dug into Pelham, calling the firm’s offer “highly abusive, coercive, misleading, conditional, and prejudicial to the interests of shareholders” and “designed to create uncertainty to entice shareholders to act quickly and contrary to their own interests.” The release also explained the reasons Nickel 28 believes Pelham is acting in bad faith and misleading shareholders as to its intentions.
In April, Nickel 28 introduced a shareholder rights plan that would, if approved, help to ensure shareholders are “treated fairly” with regards to unsolicited takeover bids, and would protect against acquisitions through “creeping bids.” The plan would also allow shareholders to buy common shares at a discount in the case of a person attempting to acquire shares equal to 20 percent or more without complying with the rights plan's provisions. Pelham fired back, calling the plan a “poison pill.”
A week later, Nickel 28 announced its largest-ever cash distribution from Ramu of US$9.7 million and shared its intentions to buy back 7.2 million common shares from the TSX Venture Exchange through a normal course issuer bid. The company said this would “provide an alternative source of liquidity for shareholders without the highly uncertain conditions of Pelham’s ‘mini-tender’ Scheme.”
Pelham’s tender offer expired on April 26 and the firm was ultimately tendered 3.66 million shares. Once it has completed the purchase of those shares, Pelham said it will be the company’s single largest shareholder at 10.5 percent, and as such it called on Nickel 28’s board of directors for a change in course to “reestablish shareholder support.” The company’s share price jumped to a year-to-date high of C$1.25 the same day; its board had yet to respond to this news as of April 28.
3. Sherritt International (TSX:S)
Year-to-date gain: 11.54 percent; market cap: C$218.51 million; current share price: C$0.58
Sherritt International is a miner, producer and refiner of high-purity nickel and cobalt. The company operates a mine in Cuba and a refinery in Alberta, Canada, both of which are part of its 50/50 Moa joint venture with Cuba’s General Nickel Company. The vertically integrated operation can produce 3,800 MT of cobalt and 35,000 MT of nickel per year.
Sherritt’s share price moved up in early January, reaching an early year-to-date high of C$0.63 on January 20. The company released its 2022 full-year results and 2023 guidance on January 23, reporting that the Moa operations produced 3,368 MT of cobalt and 32,268 MT of nickel. The company called 2023 a transition year for Moa due to the expansion plan, which is expected to be completed in 2024. As such, guidance came in slightly lower at 3,100 to 3,400 MT of cobalt and 30,000 to 32,000 MT of nickel. Sherritt released a more in-depth breakdown of its activities in 2022 on February 8.
At the end of March, Sherritt announced that its updated technical report for Moa includes a proven and probable cobalt reserves increase of 129 percent to 144,000 MT and a life-of-mine extension of 14 years to 2048. Updated after-tax net present values came in at US$812 million for a conservative base-case scenario, and US$1.5 billion in an alternative-case scenario based on analyst price forecasts. These numbers don’t take into account the upcoming expansion, which the company states should raise the net present value and shorten the life of mine by a few years.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Lauren Kelly, hold no direct investment interest in any company mentioned in this article.
- Cobalt Market 2022 Year-End Review ›
- Cobalt Market Update: Q1 2023 in Review ›
- How to Invest in Cobalt ›
- Top 10 Cobalt Producers by Country (Updated 2022) ›
- Cobalt Stocks: 5 Biggest Producers (Updated 2022) ›
Lauren gained her education through Douglas College’s Professional Writing program and SFU’s Editing certificate program. She spent many years at Douglas' student newspaper, including a term as Editor-in-Chief. Now nearing five years as part of the INN team, she is passionate about delivering accurate and informative content to investors.
Investing News Network websites or approved third-party tools use cookies. Please refer to the cookie policy for collected data, privacy and GDPR compliance. By continuing to browse the site, you agree to our use of cookies.
Lauren gained her education through Douglas College’s Professional Writing program and SFU’s Editing certificate program. She spent many years at Douglas' student newspaper, including a term as Editor-in-Chief. Now nearing five years as part of the INN team, she is passionate about delivering accurate and informative content to investors.
Learn about our editorial policies.