COB - COBALT BLUE HOLDINGS LIMITED

[blacksheep]

Cobalt Blue Holdings Ltd COB:ASX

 

Had reached a high of $1.67 in April this year - currently trading @ 22.5c.

 

Ongoing "disputes" with JV partner BPL continue BPL's ann this morning - BPL: Thackaringa Cobalt Project - Further Dispute Notices https://www.asx.com.au/asxpdf/20181203/pdf/...wpqgpcg8dzq.pdf

COB's ann - https://www.asx.com.au/asxpdf/20181203/pdf/...wpqgpcg8dzq.pdf

 

Cobalt Blue Holdings Limited (ASX:COB) is pleased to clarify matters and reduce investor uncertainty

following a request by the Australian Securities Exchange (ASX) to release the Thackaringa Joint Venture

Agreement (JVA). The JVA is attached to this letter.

 

Now that the market has full visibility of the JVA, COB takes this opportunity to summarise its dealings

 

[blacksheep]

Cobalt Blue Holdings Ltd COB:ASX

 

Disputes continue

 

Dilution triggered.

COB advances to a 93.68% beneficial interest in the Thackaringa Joint Venture.

KEY POINTS:

a Cobalt Blue Holdings Limited (COB), as [interim] Manager of the

Thackaringa Joint Venture (TJV) issued a Billing Statement and

Called Sum to the Joint Venture partners, COB and Broken Hill

Prospecting Limited (ASX: BPL).

 

a BPL failed to pay the Called Sum as required by the TJV

Agreement and then issued an Optional Dilution Notice.

 

a COB has recalculated BPL's Joint Venture Interest and notified

this to BPL as required by the TJV Agreement Dilution Provisions.

 

a As a result of this recalculation, COB believes it now holds an

effective 93.68% beneficial interest in the Thackaringa Cobalt

Project and BPL an effective 6.32% beneficial interest.

[nipper]

Agreement between COB and Mitsubishi Corporation

 

COB is developing the Broken Hill (Thackaringa) Cobalt Project, targeting production of up to 4,000 tpa of cobalt and 300,000 tpa of elemental sulphur. The sulphur will be in a prilled formed, suitable for long-distance transport and rehandling, without production of excess dust or fine particulates. COB is aiming to be a new supplier of elemental sulphur. Located in Australia, the supply will be close to the end-user markets throughout South-East Asia.

 

Mitsubishi Corporation are active global sulphur and sulphuric acid market traders, currently holding a significant share of Asian sulphur and sulphuric acid market. COB intends to produce up to 100 t of elemental sulphur from bulk metallurgical testwork trials over the period to 31 December 2020.

 

The Company has now entered into an agreement with Mitsubishi to conduct marketing trials for the elemental sulphur. If the trials are successful, it is then the intention of both parties to negotiate an offtake contract for the commercial production and sale of elemental sulphur from the Broken Hill Cobalt Project.

- wallowing before this, because the economics looked challenging? Up 30%. ...(...to 17c; was $1.50 a year ago, so there's probably quite a few sellers taking advantage of liquidity to get out and take the loss before EoFY)

[nipper]

up 40% today

 

 

On 08 January, Cobalt Blue received a “please explain†from the ASX after shares in the company jumped almost 14% despite no news being announced.

 

The company today advised that it was “not aware of any explanation for the price change and increase in volume in the securities of Cobalt Blue, other than as referred to in previous ASX announcementsâ€.

 

However, the company noted there were a number of factors that could explain investor interest in Cobalt Blue securities.

 

The company said that cobalt was a critical ingredient for high-performance lithium-ion batteries, which in turn are used globally to power electric vehicles (EV) and energy storage systems (ESS).

 

As many countries move towards clean energy, more subsidies on EV vehicles are being rolled out. These are significant, effectively subsidising between 20% to 35% of the purchase price of EVs in the European Union, for example ...and turning the bloc into the largest global market in EV.

 

The company also said that the upcoming Biden Clean Energy plan in the United States includes a US$400 billion investment supporting the roll out of 25 million EVs, which will be another tailwind for the company.

 

In addition, the cobalt market has increased significantly from US$12/lb in April 2020, to more than US$19/lb at this time. It believes the cobalt price is on track to retrace its four-year longer term average price of US$25/lb.

 

And finally, Cobalt Blue says that its Broken Hill based Pilot Plant is on track to operate from February 2021, as already announced to the market on 21 December 2020.

 

 

[nipper]

ASX query was when COB was around 20c. .... all of a week ago.

Today COB touched 47c and holding the day's 25% lift. Since waking up late December, 15 of the last 17 days have ended in the green. Chairman's letter in 1 Jan was upbeat

Looking forward, we expect to deliver significant developmental updates shortly. These updates will include details of the calcination of approximately seven tonnes of BHCP concentrate, from which we will produce feedstock for the Pilot Plant.

 

In parallel, the Pilot Plant is being finalised, and remains on track for commissioning during February with first product shortly after. We have begun local hiring of plant personnel and look forward to continuing our long and fruitful relationship with the Broken Hill community. The Pilot Plant will supply both MHP and cobalt sulphate test samples for commercial partners.

The sample programme (ranging from 100 to 200 kgs and from 2 to 3 tonnes for the later Demonstration Plant) is, from COB's knowledge, one of the largest undertaken within the global cobalt market, where typical project testwork normally ranges from 1 to 20 kgs. The facility will prove up the processing technology that COB has developed and derisk the project for future investors