With many different industrial uses, cobalt is an essential mineral. Australia offers a steady supply of cobalt in a safe geopolitical environment, with about 19% of the world's reserves located there. For international cobalt sourcing, the nation is a desirable choice due to its open regulatory environment and socially conscious investment opportunities.
Cobalt plays a crucial role in emerging technologies, such as lithium batteries and synthetic fuels, supporting the transition to a sustainable energy future. Lithium-ion battery manufacture requires the use of cobalt.
With a maturing supply chain and new projects in development, including potential from mine tailings and abandoned sites, Australia presents solid investment opportunities for cobalt.
The rapid expansion of smart grids, renewable energy sources, and the electric vehicle sector are expected to propel a significant increase in the world's demand for cobalt. Cobalt demand is expected to rise as the public and private sectors concentrate on carbon transition energy policies. ( Source: Australian Government/ Australiaminerals.)
Here we present the best ASX-cobalt mining companies that are strongly involved in exploration, production, and marketing activities.
Note: The market cap and the share price of the selected ASX stocks below are mentioned as of 1st February 2024.
Meteoric Resources NL (ASX: MEI)
Market cap: $353.25 million
CMP: $0.178
The company unveiled compelling high-grade ionic clay rare earth element (REE) drill results from its Caldeira REE Project in the Pocos de Caldas Alkaline Intrusive Complex, Brazil, reinforcing the project's exceptional prospective.
Notably, the findings revealed significant zones of enriched Heavy Magnetic Rare Earth Oxides (HMREO), specifically Tb oxide and Dy oxide, surpassing the global average of HMREO 30 ppm reported in Inferred Resources.
MEI remains steadfast in its commitment to advancing exploration and drilling endeavors at the Caldeira Project, where, notably, every drilled hole at the project has intercepted clay-hosted rare earth mineralization, indicating early signs of significant economic potential.
Jervois Global Limited (ASX: JRV)
Market cap: $74.32 million
CMP: $0.028
Producing battery minerals is Jervois Global's primary goal, with cobalt being a key component. It anticipates that over the next few decades, widespread EV adoption will turn the cobalt industry into a strong, thriving market.
Jervois has operations all over the world and, at its Idaho Cobalt Operation (ICO), aims to be the only cobalt miner in the United States. But in March, the business decided to halt the last phase of construction at ICO because of the ongoing low price of cobalt and the effect of inflation on building expenses. It intends to start building again as soon as prices stabilize.
Trek Metals Limited (ASX: TKM)
Market cap: $18.98 million
CMP: $0.037
The company signed an interim agreement with Rio Tinto Exploration Pty Limited during the quarter, which is a wholly-owned subsidiary of the global mining group Rio Tinto, for an option to explore its Jimblebar Nickel-Copper Project in the Pilbara region of Western Australia. The project is situated 40 kilometres south-east of Newman. The project has been classified as highly prospective for magmatic nickel-copper sulphide mineralization. Trek Metals Limited's active exploration has been scheduled over the upcoming months, which has been strongly supported by the successful $7.5 million capital raising during the quarter. The funding support provides the company with a strong balance sheet and a robust platform for future growth.
Cobalt Blue Holdings Limited (ASX: COB)
Market cap: $60.13 million
CMP: $0.16
The growing trend of electric vehicles, or EVs, is expected to drive the long-term outlook and keep cobalt prices rising. The current state of geopolitical unrest combined with declining consumer confidence and real household incomes will have an effect on demand for portable electronics, which in turn will have an effect on future cobalt prices. An enormous opportunity exists for the company due to the robust demand for lithium-ion batteries, which are widely used in energy storage systems and electric vehicles.
Ardea Resources Limited (ASX: ARL)
Market cap: $73.88 million
CMP: $0.375
The development of its fully owned Kalgoorlie nickel project, which it claims hosts the largest nickel-cobalt resource in the developed world, is Ardea Resources' main priority. The Goongarrie Hub deposit is part of the project. An ore reserve of 194.1 million tonnes at 0.05% cobalt and 0.7% nickel is located at Goongarrie Hub. According to the study, this resource could sustain an open-pit mining operation that produces 30,000 tonnes of nickel and 2,000 tonnes of cobalt annually over the course of a 40-year mine life. Ardea is currently completing its final feasibility study.
Reference: *All Data has been sourced from Company announcements and Refinitiv, Thomson Reuters
Frequently Asked Questions (F.A.Q)
What are the best ASX cobalt companies in Australia?
• Meteoric Resources NL (ASX: MEI)
• A-Cap Energy Limited (ASX: ACB)
• Havilah Resources Limited (ASX: HAV)
• Trek Metals Limited (ASX: TKM)
• Cobalt Blue Holdings Limited (ASX: COB)
What is the cobalt's industrial application?
Cobalt plays a crucial role in emerging technologies, such as lithium batteries and synthetic fuels, supporting the transition to a sustainable energy future. Lithium-ion battery manufacture requires the use of cobalt.
What is the outlook for cobalt?
The rapid expansion of smart grids, renewable energy sources, and the electric vehicle sector are expected to propel a significant increase in the world's demand for cobalt. Cobalt demand is expected to rise as the public and private sectors concentrate on carbon transition energy policies.
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