Highlights

  • Cobalt Blue signed a non-binding term sheet with STG Metals for up to 1,000 tonnes of annual cobalt metal supply.
  • The proposed arrangement runs initially for three years with an extension option, but still requires negotiation and a definitive agreement.
  • The developer reports no financing facilities in place and expects a final engineering study before making any refinery investment decision.
  • Cobalt Blue closed September with A$2.852 million in cash and estimated 2.24 quarters of funding at its current spending rate.

An indicative customer agreement has advanced Cobalt Blue Holdings’ (ASX:COB) Kwinana refinery discussions without yet securing contracted sales or project finance. The company signed a non-binding term sheet after the September quarter for up to 1,000 tonnes of cobalt metal annually. A definitive offtake agreement, engineering report and financing remain ahead of any final investment decision.

Metal Sales Would Precede Sulphate Qualification

The proposed counterparty is STG Metals GmbH. Terms cover standard-grade cobalt metal for an initial three years, with an option to extend for another three.

Negotiations must still produce a definitive agreement. The refinery plan begins with cobalt metal production and sales while cobalt sulphate passes through end-user qualification.

Cobalt Blue describes financing discussions as progressing alongside offtake, but no financing facilities are currently in place. The company remains a pre-revenue developer, with no production reported and negligible revenue.

A final engineering and project study is expected before an investment decision.

Other Projects Continue Technical Assessment

At the Broken Hill Cobalt Project, a strategic mine plan assessment supports a starter case of at least ten years at 2.5 million tonnes annually, beginning at Pyrite Hill. The company explicitly says this is not a production target.

Approximately 95% of material within the selected pit shells is Measured or Indicated, with the remaining Inferred material at Railway. A scoping report supporting environmental assessment requirements is expected in the fourth quarter of 2026.

At Halls Creek, testwork is examining a shared heap-leach route for copper-zinc-silver deposits. That approach replaces an earlier underground Sandiego mine and concentrator concept. An updated scoping study is targeted for the December quarter.

Transfer documents for a 51% interest were lodged after quarter-end. The company is pursuing an election to earn up to 75% by spending A$1.5 million by 30 June 2028.

Technology Work Proceeds Against Limited Cash

The Broken Hill Technology Centre recovered graphite concentrate from battery black mass. Joint purification work with CSIRO achieved greater than 99.95% battery-grade specification, with electrochemical anode testing next.

Cobalt Blue is also contributing testwork and cost estimates to a preliminary economic assessment for a proposed US nodule refinery, targeted for the fourth quarter. The cited facility capacity is aspirational, rather than a production target.

Closing cash declined from A$4.265 million to A$2.852 million. Operating cash outflow was A$1.2 million, with administration and corporate costs of A$677,000 the largest line. No unused financing facilities were available.

The company estimates 2.24 quarters of funding at the current rate. No production or development activity occurred during the period, and related-party payments totalled A$174,000. Refinery financing, the engineering report and definitive customer terms remain unresolved alongside the December-quarter studies.