Project Summary
Cobalt Blue (COB) aims to construct and operate a Cobalt-Nickel Refinery at Rockingham to produce cobalt sulphate for the battery supply chain. COB has executed a non-binding agreement with Iwatani Australia Pty Ltd as a partner to advance the Refinery
The Refinery will have the capacity to produce cobalt and nickel sulphate (3,000 tpa cobalt metal equivalent and 1,000 tpa nickel metal equivalent) in Stage One, and an incremental 3,500 tpa cobalt metal equivalent and 800 tpa nickel metal equivalent in Stage Two.
The Refinery will represent Australia’s first cobalt sulphate refinery and will employ ~50 staff in Western Australia.
Project Description
Cobalt Blue is a cobalt exploration and project development company focused on developing cobalt mining and refining operations in Australia. COB is committed to becoming the world’s premier supplier of ethically produced cobalt.
COB has developed patented proprietary processing technology for cobalt refining to battery grade cobalt sulphate. We have assembled a team with strong technical, commercial, approvals and community engagement capabilities. The company already has experience gained during the pilot and demonstration plant operations to scale up cobalt refinery operations.
COB has recently completed a Feasibility Study regarding the Cobalt-Nickel Refinery which aims to establish a battery grade cobalt sulphate refinery in partnership with Iwatani Australia at their Doral Fused Material operations in East Rockingham, Western Australia.
The refinery is planned to be developed in two stages. Stage One will purchase third party cobalt feedstock (from WA, Australian and overseas producers) and refine it to produce a battery grade cobalt sulphate. Stage Two will increase the production capacity of the refinery to process a combination of further third-party feedstock and the mixed hydroxide precipitate (MHP) feedstock from COB’s proposed Broken Hill Cobalt Project for conversion into battery grade cobalt sulphate.
Investment Opportunity Details
The economics of the Refinery presents a compelling evaluation of a cobalt and nickel refining business that is expected to generate stable margins throughout the highs and lows of the cobalt price cycle. On a 100% owned basis, the Refinery has the following financial metrics:
o Pre-construction costs of A$100m – of which large-scale test work on third-party materials started in 2H 23.
o Stage 1 estimated installed capital costs of A$47m (plus A$7-9m contingency).
o Average Annual EBITDA of A$23-46m.
o Stage 1 NPV10 of A$113m with an IRR of 23% (assuming long-term cobalt prices and FX assumptions).
o Stage 1 NPV10 of A$101m with an IRR of 24% (assuming spot cobalt prices and FX assumptions).
Investor information
Financial information
Investment sought: $41 million - $70 million
Document(s) / Video(s):
Project website:
https://cobaltblueholdings.com/projects/cobalt-nickel-refinery-project/
Project information
Project highlights:
The economics of the Refinery presents a compelling evaluation of a cobalt and nickel refining business that is expected to generate stable margins throughout the highs and lows of the cobalt price cycle. On a 100% owned basis, the Refinery has the following financial metrics:
o Pre-construction costs of A$100m – of which large-scale test work on third-party materials started in 2H 23.
o Stage 1 estimated installed capital costs of A$47m (plus A$7-9m contingency).
o Average Annual EBITDA of A$23-46m.
o Stage 1 NPV10 of A$113m with an IRR of 23% (assuming long-term cobalt prices and FX assumptions).
o Stage 1 NPV10 of A$101m with an IRR of 24% (assuming spot cobalt prices and FX assumptions).
More Project details will be updated soon.
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