Glencore on Cobalt

If I read today's conference call right, Glencore is hoping for a 2007 repeat on Cobalt price (2-3x from here). With Glencore having cornered much of the cobalt DRC supply, the other biggies would be getting restless to secure potential supplies for themselves elsewhere.

For perspective, the largest developed Cobalt resource (Mutanda, 2mt Cobalt) was recently valued at US$3 Bn in a Glencore transaction. The largest undeveloped resource (ARL) is still going for only US$39m EV...Not saying the two are similar apples ... but there's a long way to go



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Ivan Glasenberg (CEO)
Correct. That is growing and demand is growing. Supply is not -- it's 100,000 tonne market and as Steve says we're currently round about 32,000, 33,000 tonnes. When Katanga comes up, we'll be somewhat higher. We'll be a big percent of that market. Therefore, yes, are a major player there and we have the benefit of that and it has doubled. But remember, cobalt has been $40, $50 not long ago. I think before the crash in 2007/2008, I think that's when it was about $40, $50. Today it's doubled from $10 to $20. Let's see where it goes. But it's all back of the battery industry and that type of industry. What have you used in your $0.89?

Steve Kalmin (CFO)
Well, I see the commentary; I see each day it says another day, another dollar. It's been going $14, $15, $16. It's almost been like that over the last six weeks or so. When did we cut it off on probably Monday, $18 maybe? That would have been maybe around that sort of number.
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