Which companies offer the best opportunities for investors looking to invest in cobalt mining stocks? All these Canadian cobalt companies had good performances last year.
Most analysts expect these stocks to go up because they believe they offer attractive returns for investors looking to buy into the sector now. In addition, cobalt is fast becoming one of the most sought-after metals in the world today.
Cobalt has been a hot commodity over the past few years; it is used in everything from cell phones to electric cars. But as demand rises, so does the price of cobalt.
Best Canadian Cobalt Stocks
Cobalt is a by-product of copper and nickel mining, so you can imagine the most significant cobalt products in Canada are copper and nickel mines. Companies are involved in cobalt exposure in several ways; they can directly own properties and be engaged in raw metals trading and streaming to collect royalties. Canada doesn’t have the most considerable potential for cobalt production; these places are Congo, Australia and Cuba. Check our list below to find the best cobalt stocks in Canada.
Wheaton Precious Metals – WPM.TO
Wheaton Precious Metals Corp., a mining company, primarily sells precious metals in Canada and internationally. The company sells gold, silver, palladium, and cobalt deposits. It has agreements for 24 operating mining assets and seven development stage projects. The company was formerly known as Silver Wheaton Corp. and changed its name to Wheaton Precious Metals Corp. in May 2017. Wheaton Precious Metals Corp. was founded in 2004 and is headquartered in Vancouver, Canada.
Why Choose WPM.TO? This company is involved with precious metals streaming in Canada and internationally; they have exposure to cobalt and other precious metals. This is direct exposure to cobalt mining.
Nickel 28 Capital (Formerly Cobalt 27 Capital) – NKL.V
Nickel 28 Capital Corp. operates as a base metals company. The company holds an 8.56% joint-venture interest in the Ramu Nickel-Cobalt operation in Papua New Guinea. It also manages a portfolio of 13 nickel and cobalt royalties on exploration and development projects in Canada, Australia, and Papua New Guinea. The company was formerly known as Conic Metals Corp. and changed its name to Nickel 28 Capital Corp. in March 2021. Nickel 28 Capital Corp. was incorporated in 2019 and is headquartered in Toronto, Canada.
Why Choose NKL.V? This company owns cobalt assets and royalties on exploration and development. In addition, they invest in cobalt mining, streaming & byproducts.
Canada Silver Cobalt Works Inc. – CCW.V
Canada Silver Cobalt Works Inc. engages in the acquisition, evaluation, exploration, and development of mineral properties. The company primarily explores silver, cobalt, nickel, gold, and copper deposits. Its flagship property is the Castle mine consists of 19 claims, 34 leases, and two licenses covering an area of 2,815 hectares located in Ontario, Canada. The company also holds an option agreement to acquire the Tinney property covering an area of 610 hectares located in the Kirkland Lake district. The company was formerly known as Canada Cobalt Works Inc. and changed its name to Canada Silver Cobalt Works Inc. in May 2020. Canada Silver Cobalt Works Inc. is headquartered in Coquitlam, Canada.
Fuse Cobalt Inc. – FUSE.V
Fuse Cobalt Inc., an exploration stage company, acquires, explores, and develops energy metal projects. The company holds a 100% interest in the Glencore Bucke project comprising two patented mining claims totalling 16.2 hectares (ha) located in Cobalt, Ontario. It also owns a 100% interest Teledyne cobalt project consisting of 5 patented mining claims covering an area of 79.1 ha and 46 unpatented mining claims covering an area of 700 ha located in the Bucke and Lorrain Townships of Ontario. The company was formerly known as LiCo Energy Metals Inc. and changed its name to Fuse Cobalt Inc. in March 2020. Fuse Cobalt Inc. was incorporated in 1998 and is headquartered in Vancouver, Canada.
Horizonte Minerals – HZM.TO
With its subsidiaries, Horizonte Minerals Plc engages in the identification, acquisition, exploration, and development of mineral projects in Brazil. The company primarily explores nickel deposits, as well as cobalt deposits. It holds 100% interest in the Araguaia ferronickel project and the Vermelho Nickel-Cobalt project in northern Brazil, south of the Carajás mineral district. The company was incorporated in 2006 and is headquartered in London, the United Kingdom.
Canada Nickel Co – CNC.V
Canada Nickel Company Inc. explores and discovers nickel sulphide assets. Its flagship property is the 100% owned Crawford Nickel-Cobalt Sulphide Project located in northern Ontario, Canada. The company was incorporated in 2019 and is headquartered in Toronto, Canada.
Fortune Minerals – FT.TO
Fortune Minerals Limited engages in the exploration and development of specialty metals, base metals, and precious metals in Canada. The company primarily explores gold, cobalt, bismuth, copper, silver, lead, and zinc deposits. Its flagship property is the NICO gold-cobalt-bismuth-copper project covering an area of 5,140 hectares located in the Northwest Territories. The company was incorporated in 1988 and is headquartered in London, Canada.
Jervois Global – JRV.V
Jervois Global Limited explores and evaluates mineral properties in the United States, Brazil, Australia, and Uganda. The company explores cobalt, nickel, copper, and gold deposits. Its flagship project is the Idaho Cobalt Operations project located in Idaho. The company was formerly known as Jervois Mining Limited and changed its name to Jervois Global Limited in July 2021. The company was incorporated in 1962 and is based in Cremorne, Australia.
Battery Mineral Resources – BMR.V
Battery Mineral Resources Corp. engages in acquiring, exploring, and developing battery mineral properties for the lithium-ion battery and energy storage sector in Canada, the United States, and South Korea. It primarily explores cobalt, copper, lithium, and graphite minerals. The company holds interests in the Cobalt District Exploration project consisting of mineral claims and leases covering 237,636 hectares in Ontario and 1,813 hectares in Quebec. It also owns 100% interest in the Bonanza Project in Idaho, Amargosa Project in Nevada, and Geumam and Taehwa projects located in South Korea. In addition, the company leases and sells padding machines, a backfill separation machine to mainline pipeline, renewables and utility construction, and oilfield pipeline and building contractors. Battery Mineral Resources Corp. is headquartered in Vancouver, Canada.
Investing in Cobalt in Canada
Although cobalt sources come from across the globe, you can still get exposure by investing in Canadian cobalt producers, which indirectly own assets and deal in cobalt. Our list above provides plenty of opportunities.
But why invest in cobalt? There are plenty of reasons, the first being it is an essential element in our daily lives and some emerging industries. Most importantly, cobalt is used to produce lithium-ion batteries, which power our mobile devices and electric vehicles. So you could invest in these lithium stocks for exposure to many minerals.
What is cobalt used for?
- high-purity metals, high strength alloys
- industrial applications
- catalysts and pigments
- electronic devices lithium-ion batteries
- electric vehicle batteries
Growth in demand for cobalt
There is an increase in investment and growth in the sector, primarily due to EV batteries and other lithium-ion battery applications. This trend shows no signs of stopping as demand for these goods increases. Cobalt is an exhaustive resource, so the price will only get more expensive over time unless some new mining innovation makes it incredibly cheap to extract.
Growth in demand, combined with a finite supply, makes cobalt a precious metal to watch.
Canadian Cobalt Mining Stocks
North America’s highest quality cobalt refinery is located near a major auto plant in Ontario. According to a 2012 report, his replacement was valued at more than $100 million.
Given the company’s partnership with Glencore, the world’s largest cobalt producer, I have confidence in the management team. Cobalt production has been an afterthought for Glencore, a British mining giant focused on coal, copper and nickel.
Let’s start with Sherritt International, a large cobalt producer exposed to significant risk. It is a nickel producer with mines in Canada, Cuba and Madagascar. Other major cobalt producers include Cuba, Russia, Australia and the Philippines.
Cobalt is an essential part of the building process of electric vehicles as it is a critical component of lithium-ion batteries. Many industry experts expect cobalt to increase in the coming years due to the predicted impact of electric vehicles on the automotive market. As the cobalt market grows, consumers should invest in cobalt stocks to exploit the market’s exciting potential.
Investing in cobalt mining stocks makes a lot of sense as an inflation hedge for long-term capital gains. In addition, investments in cobalt stocks are becoming increasingly popular with hedge funds due to the numerous industrial applications of the transition metal.
Given the growing popularity of electric vehicles and the increasing demand for other industrial applications of cobalt, investing in cobalt stocks as a long-term investment and inflation hedge makes a lot of sense. In addition, cobalt is used in cutting-edge technologies and shows impressive future growth. This trend suggests that investing in cobalt stocks of large mine operators and companies in the development phase of the mine can yield substantial returns to patient investors over time.
As a result of the unstable and sometimes violent conditions associated with cobalt acquisitions, several companies that depend on them, including Glencore, seek ways to avoid over-reliance on them. Glencore, for example, has a cobalt-producing mine in the Democratic Republic of Congo, which produces much of the world’s cobalt. Still, political unrest has destabilized the country, affecting the company’s share price.
Fortune Minerals has a diverse portfolio of metals that it offers. Firstly, cobalt is not as diverse a metal portfolio as many other cobalt suppliers on the market will see.
Nickel and cobalt, which occur naturally in the earth’s crust, form from small deposits in natural and meteoric iron alloys. These free elements are produced by reductive melting to hard, shiny silver-grey metals.
Cobalt plays an essential role in modern society and contributes to batteries, magnets and chemical catalysts. For example, rechargeable batteries for smartphones, laptops and other electronics require cobalt. The main cobalt production lines in the Democratic Republic of Congo are stable. Experts believe we will continue to need cobalt in the coming years to produce electric vehicles.
Raw cobalt is produced as a by-product of nickel and copper. The copper belt of the Democratic Republic of the Congo (DRC) and Zambia supplies most of the world’s cobalt production. Therefore, one of the best ways for investors to benefit from the high demand for cobalt is to purchase shares in cobalt companies.
Canada Cobalt is developing three high-quality former cobalt mines in northern Ontario. In addition, Fortune Minerals is developing its Nico cobalt, gold and bismuth copper projects in Canada’s Northwest Territories. The planned bulk concentrate from the projects will be shipped to a planned metalworking plant in Saskatchewan.
Last year, the company acquired a stake in the cobalt project at the DRC mine, where an estimated 3.1 million tonnes of the metal are stored. As a result, Fortune Mineralscano become a Canadian producer of cobalt, chemicals, gold and bismuth by-products. In addition, top cobalt deposits hold Sue Dianne copper, silver and gold deposits and other exploration projects in Canada’s Northwest Territories.
The company’s cobalt sales increased by 15% in 2020 compared to 2019. Despite slow growth in 2020, demand is expected to increase in 2021. As a result, the company is ranked 7th in our list of the top 10 cobalt stocks to buy in 2021. Cobalt Resources is interested in the mining industry’s ferrous metals, base metals, and coal segments.
Earlier this month, the company announced it had resumed a nickel project in Western Australia that was put off for maintenance in 2016. Cobalt is contained in nickel and can be combined into a mine. If the company can start work on a nickel mine, it will be number 10 on our list of the top ten cobalt reserves for 2021.
Glencore has several mines in the Democratic Republic of Congo and mines in Australia and Canada. Battery Mineral Resources describes itself as the largest mineral claimant in Ontario’s cobalt belt. The company controls an 1100 square kilometre parcel of land that includes several high-value targets in the belt.
To list cobalt mining companies, one can access company profiles, project resources and reserves, and technical analyses. Mining stocks with the best value and fastest growth have the most IT files, such as Appli-Ion, listed on Nasdaq .8 Eskay Mining Corp.
First Cobalt has the vision to produce the world’s first sustainable cobalt for the electric vehicle market. Competitive advantages of First Cobalts include its existing hydrometallurgical facilities, low carbon footprint and proximity to the US and European markets. The end product is marketed to electric vehicles and battery manufacturers in North America and Europe.
The information provided here is for informational purposes only and not for commercial purposes or advice. This article looks at 10 of the best 2021 cobalt stocks to buy and why most market research firms are betting on cobalt stocks.
