Cobalt Blue Holdings Limited (ASX:COB) Project Update

Cobalt Blue Holdings Limited (ASX:COB) has released an update on the project cost estimates and revenue analysis for the Kwinana Cobalt Refinery (KCR). The KCR is a proposed cobalt-nickel facility representing Australia's first cobalt sulphate refinery. Stage One capacity is set at 3,000 tonnes per annum (tpa) cobalt and ~500 tpa nickel, with construction expected to commence in the first half of 2025. The estimated capital cost for Stage One is A$60m, with attractive long-term returns from expansion stages.

Executive Commentary on Kwinana Cobalt Refinery

Joe Kaderavek, CEO of Cobalt Blue, expressed, 'We are pleased to be able to update investors with pre-financing capital estimates. This latest study further demonstrates the Kwinana Refinery is a compelling, low-cost investment that rapidly injects Cobalt Blue into the mid-stream segment of the Strategically Aligned Nations' critical minerals supply chain. The longer-term returns from expansion stages are particularly attractive.'

Summary of Kwinana Cobalt Refinery Update

Cobalt Blue Holdings Limited (ASX:COB) has provided updated project cost estimates and revenue analysis for the Kwinana Cobalt Refinery (KCR). The proposed cobalt-nickel facility is set to commence construction in the first half of 2025, with an estimated capital cost of A$60m for Stage One. The project is expected to generate stable margins throughout the cobalt price cycle, with an estimated NPV8 (post tax) of A$68m and IRR (post tax) of 23%. Additionally, the Stage Two expansion is anticipated to have an incremental NPV8 (post tax) of A$90m and IRR (post tax) of 64%, contributing to a combined NPV8 (post tax) of A$158m and EBITDA of A$46m per annum. The strategic rationale for developing the refinery includes the growing demand for Electric Vehicles (EVs), favourable long-term outlook for international cobalt market supply and demand dynamics, and aligning with major Japanese trading house, Iwatani Corporation. The company aims to support the global electrification transition and contribute to the development of a diversified and secure supply chain for critical minerals.