Cobalt Blue announces potential partnership with Iwatani Corporation for BHCP project

Cobalt Blue Holdings Limited (ASX: $COB) has announced a potential partnership with Iwatani Corporation for the development of the Broken Hill Cobalt Project (BHCP). The Heads of Agreement (HoA) with Iwatani Corporation cements the shared strategic vision for both BHCP and the Kwinana Refinery Project, providing a pathway to executing a binding agreement between parties. The company's current market capitalization stands at $68m with a share price of $0.18 as of 26/02/2024.

Executive Commentary on Potential Partnership

Joe Kaderavek, CEO of Cobalt Blue, expressed excitement about the potential partnership with Iwatani Corporation, stating, 'Cobalt Blue is excited to have a potential partner of the calibre of Iwatani Corporation. We share a common view of Australia as a supplier to the global battery industry and look forward to developing both projects with Iwatani'. Kan Ueda, Managing Director of Iwatani Australia, also commented, 'Iwatani Australia is pleased to further engage with Cobalt Blue to develop the Broken Hill Cobalt Project. We see strategic value in developing a large-scale cobalt mine and integrating this feedstock into the Kwinana Refinery Project'.

Summary of Announcement and Outlook

Cobalt Blue's announcement of a potential partnership with Iwatani Corporation for the BHCP project marks a significant development in the company's strategic vision. The company's decision to commission a strategic review reflects its proactive approach to assessing the viability of a condensed, higher-margin project in response to current and near-term metal pricing forecasts. The Refinery Development Program's progress in sourcing cobalt-rich materials and the production of battery-grade cobalt sulphate indicate a positive outlook for the company's future. With the anticipation of a potential supply deficit in the global cobalt market from 2027, Cobalt Blue remains optimistic about the long-term sustainable metal pricing compared to current levels. The potential partnership with Iwatani Corporation and the ongoing developments in the Refinery Project position Cobalt Blue for potential growth and expansion in the green energy technology sector.