COB chief delivers 10 new takeaways

Cobalt Blue CEO, Joe Kadevarek, has today posted a new, 34 minute investor briefing.

My sense is that it’s the most upbeat yet.

The briefing follows disruption in lithium and other battery metals markets sparked by negative sentiment from Goldman Sachs.

While JK doesn't mention GS in his briefing, I take his remarks to reassure all players in the cobalt space.

Here are 10 key takeaways:

1. COB processing of surface mining waste materials will deliver as many cobalt units as the Broken Hill operation. That is, production is set to double.

2.  After establishing Australia’s first cobalt refinery, COB may invest in two new sulphate refining operations, one at a port in Queensland and the other at a port in WA .

3. Waste processing negotiations are so commercially sensitive that they can’t be currently talked about.

4. A special waste processing announcement may be made to the ASX in three months – maybe in September or October

5. COB will be making an announcement about its 24/7 cobalt demonstration operation in “the third week in June”. I expect this will coincide with on-site visits by instos and ’high calibre funds’ on June 21.

6. In August, COB will allow 10-15 battery maker, EV OEMs and other “partners” exclusive 24hr-48hr access to its $10m demonstration plant to conduct due diligence.

7. In Q4, COB will turn “non-binding outcomes into binding outcomes”.

8. Current cobalt prices are “outstanding” and are expected to be steady ahead of first production in 2025.

9. There will be a 1 to 3 upswing in cobalt demand leading to "scarcity".

10. Stakeholder engagement is crucial for success of a mine – there are now more 400 COB shareholders in Broken Hill.

Finally, it’s good to hear Joe sprinkling his (paid for) Crux Investor interview with words such as “outstanding” “exciting”, “robust”, “very lucky” and “we’re in a very strong position”.

You get the sense COB shares are headed higher.