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Cobalt (The next Uranium), Discussion
blacksheep
post Posted: Aug 17 2019, 04:09 PM
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In Reply To: blacksheep's post @ Aug 7 2019, 10:37 AM

China’s Huayou pulls out of Congo cobalt mine investment after price slump
Reuters | August 16, 2019 | 9:23 am
QUOTE
China’s biggest cobalt refiner Zhejiang Huayou Cobalt said on Thursday its overseas unit is pulling out a deal to invest $66.3 million in a cobalt mine in the Democratic Republic of Congo (DRC) after prices of the metal slid.

Huayou International Mining had agreed to take a 51% stake in Lucky Resources Holdings Co Ltd, whose wholly owned subsidiary New Minerals Investment holds the DRC’s 13235 mining licence, in December 2017.

“After signing, the market environment has undergone quite a big change,” Huayou said in a filing to the Shanghai Stock Exchange. “The price of cobalt products has fallen sharply and profitability has dropped sharply.”

THE COMPANY HAD SO FAR PAID ONLY $9.95 MILLION OF THE AGREED PRICE, HALF OF WHICH WILL BE RETURNED BY SEPTEMBER 2020

Prices of cobalt, a key ingredient in batteries for electric vehicles, have fallen by around two-thirds from their April 2018 peak of near $100,000 a tonne, and currently stand at $32,600 a tonne on the London Metal Exchange.

They have however shot up more than 25% this month, driven largely by Glencore’s confirmation on Aug. 7 that it was shutting its Mutanda copper and cobalt mine, also in DRC, the world’s biggest cobalt producer, for two years.

“After friendly consultation with the other party, the two sides agreed to terminate this outward investment cooperation,” Huayou said.

The company had so far paid only $9.95 million of the agreed price, half of which will be returned by September 2020 and the remainder by June 2021, according to the filing.

Huayou, primarily a cobalt refiner that makes chemical products such as cobalt hydroxide and cobalt sulphate, operates the PE527 copper-cobalt mining permit in the DRC.

(Reporting by Tom Daly and Yilei Sun; Editing by Jan Harvey)


https://www.mining.com/web/chinas-huayou-pu...er-price-slump/







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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Aug 12 2019, 08:17 PM
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Cobalt to share EV battery duties with nickel
QUOTE
At Ahead of the Herd we believe both cobalt and nickel sulphide will share the EV battery limelight. However, because of the scarcity of nickel sulphide deposits the junior resource company that already owns, and can develop a nickel sulfide deposit at tidewater, with enough scale to actually become a mine, will have major base metal mining companies like BHP, Vale, Glencore and Sherritt pounding on its door.

read full article -> https://www.aheadoftheherd.com/Newsletter/2...with-nickel.htm



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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Aug 8 2019, 12:44 PM
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In Reply To: blacksheep's post @ Aug 7 2019, 10:37 AM

Miners find out the hard way why cobalt is called the goblin
Bloomberg News | August 7, 2019

QUOTE
For Glencore, the precipitous fall in cobalt is more bruising because the metal, a key ingredient for batteries, was its shining star back in 2017. The miner made its copper and cobalt assets a big part of its selling pitch to investors, touting the future boom in electric cars and global urbanization.

But the strategy hit pitfalls. Excess supply has overwhelmed demand for battery materials and because it’s a niche market, Glencore hasn’t been able to hedge its exposure to cobalt, leaving the metals trading business exposed to losses. To make matters worse, Glencore detected uranium in some cobalt last year, rendering it unsaleable.

To be sure, Glencore isn’t giving up on Mutanda entirely. It expects to bring it back online in 2021 and is looking at a new mine plan that could boost production over the long term. The restart might coincide with electric cars becoming more popular with consumers, which would boost demand.

That could leave Glencore’s traders on a strong footing as they negotiate supply deals with customers who pulled out of contracts when prices were weak. “People who have reneged on us in the past, of course they’re not going to be top of our list,” Glasenberg said.


read more - https://www.mining.com/web/miners-find-out-...led-the-goblin/



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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Aug 7 2019, 11:48 AM
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In Reply To: nipper's post @ Aug 7 2019, 11:04 AM

Yep - just like the much hyped graphite boom, the lithium boom the cobalt boom has has blown up - for the time being. All those who rushed and made it into production are struggling. Down the spec end, the ones still kicking around rock chips, the promoters are exiting into the next hot thing biggrin.gif

Moral to the story - in any boom get in early (on the "pie in the sky" hype) then get out fast (when reality bites).

Not to say we won't see another boom in battery materials - but not just yet IMHO



--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
nipper
post Posted: Aug 7 2019, 11:04 AM
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In Reply To: blacksheep's post @ Aug 7 2019, 10:37 AM

Wow, just as well I only kept a Watchlist.....
.. - and might even delete that (although sometimes , now is the best time to buy)



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
blacksheep
post Posted: Aug 7 2019, 10:37 AM
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In Reply To: blacksheep's post @ Jul 21 2019, 11:33 AM

Another cobalt mine shuttered - and not just any old cobalt mine. Cobalt prices have fallen more than 40% this year due to a surge of supply - mainly from DRC
Glencore to shutter giant cobalt and copper mine in Congo
Bloomberg News | August 6, 2019
QUOTE
Glencore Plc is planning to halt production at one of the world’s biggest cobalt mines after prices for the battery metal collapsed and costs at the project increased, according to a person familiar with the situation.

The announcement that Glencore will close its Mutanda mine in the Democratic Republic of Congo is expected to come as the company lays out an overhaul of its key African copper and cobalt business when it releases first-half results on Wednesday. It would be another setback for Glencore, which has been dogged by operational problems, legal challenges and a rift with Congo’s government over a new mining code.


QUOTE
Even though African copper and cobalt is a small part of Glencore’s overall business, it’s considered a key source of future profits. The company ranks as the world’s top producer of cobalt and investors have hoped Glencore would ride the boom in electric cars and battery demand. Mutanda produced 27,300 tons of cobalt last year, more than half Glencore’s total output, and 199,000 tons of copper.

The decision to shutter the mine highlights how quickly cobalt has shifted from a prized asset to a headache. After quadrupling in two years, prices have collapsed to the lowest since 2016 as new supplies pour into the market.

With few hedging tools available, the plunge has left Glencore exposed. The company said last week that it’ll report a $350 million non-cash hit to its trading business from cobalt that’s been mined, but not yet sold.


https://www.mining.com/web/glencore-plans-t...-mine-in-congo/



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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 


blacksheep
post Posted: Jul 21 2019, 11:33 AM
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Eurasian Resources is said to weigh sale of Congo mining assets
Bloomberg News | July 19, 2019

QUOTE
ERG, which mines copper and cobalt in DRC, has been reviewing its investments and has already sold assets valued at about $1 billion, according to its website. The company is a major producer of cobalt, a material used in rechargeable batteries powering iPhones and Tesla cars, though it’s had to grapple with a supply glut and declining prices. Congo produced 72% of the world’s supply of cobalt last year.


read more - https://www.mining.com/web/eurasian-resourc...-mining-assets/



--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Jul 11 2019, 03:09 PM
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Surge in battery nickel use is more bad news for cobalt price
Frik Els | July 10, 2019

QUOTE
Battery metals tracker Adamas Intelligence says electric vehicle manufacturers deployed 57% more nickel in passenger EV batteries in May this year compared to 2018.

The Toronto-based research company, which tracks EV registrations and battery chemistries in more than 80 countries says the nickel metal equivalent used in lithium-ion batteries (primarily in the form of nickel sulphate) increased by 69% whereas the amount used in nickel metal hydride (NiMH) batteries (primarily in the form of nickel hydroxide and AB5 nickel-REE alloy) increased 26%.

THE DEPLOYMENT OF NICKEL IS OUTPACING THE GROWTH OF THE OVERALL EV BATTERY MARKET

The deployment of nickel also outpaced the growth of the EV market overall. In May this year, total passenger EV battery capacity deployed globally was 48% higher year-on-year according to Adamas data.

Nickel’s inroads is due to shifting chemistries of nickel-cobalt-manganese (NCM) battery cathodes.


QUOTE
Nickel touched $13,000 a tonne for the first time since April on Wednesday. The price is up just over 19% in 2019 as the EV boom creates additional demand and primary use of the metal today – stainless steel production – continues to grow.

Cobalt is now worth $28,000 a tonne after peaking at $95,000 little more than a year ago as miners in the Congo – responsible for two-thirds of output – ramp up production.

https://www.mining.com/surge-in-battery-nic...r-cobalt-price/



--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
nipper
post Posted: May 9 2019, 10:06 AM
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In Reply To: nipper's post @ Apr 4 2019, 11:05 AM

And, for what it's worth, First Cobalt FCC will delist from the ASX by mid June.



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Apr 24 2019, 09:40 AM
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German carmaker BMW will buy cobalt, a key component for electric vehicle (EV) batteries, directly from mines in Australia and Morocco to ensure they are not produced by child labour, an executive said on Tuesday..

Andreas Wendt, BMW board member responsible for procurement, told a briefing in Paris that the new supply of cobalt would be used in the carmaker's next generation of EVs in 2020.

The world’s largest known reserves of cobalt are found in the Democratic Republic of Congo, where the raw ingredient is often mined by small, artisanal operations and supply chains are not strictly monitored.

BMW said last year it was exploring ways to improve working conditions for mining cobalt in Congo through a pilot project.



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
 


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