Highlights

  • A non-binding offtake term sheet was signed with STG Metals for up to 1,000 tpa of cobalt metal from the Kwinana Cobalt Refinery.
  • Strategic mine planning supports a 10-year starter case at 2.5 Mtpa for the Broken Hill Cobalt Project.
  • Battery-grade graphite of more than 99.95% purity was produced from black mass in work with CSIRO.
  • Cobalt Blue was contracted by Glomar Minerals to contribute to the Project Infinity PEA.

Cobalt Blue Holdings Limited (ASX:COB) has released its quarterly report for the period ended 30 September 2026. The update covers commercial progress at the Kwinana Cobalt Refinery, mine planning at the Broken Hill Cobalt Project, technology work at its Broken Hill Technology Centre and testwork at the Halls Creek Project.

Kwinana Cobalt Refinery Offtake

Shortly after quarter end, Cobalt Blue signed a non-binding offtake term sheet with STG Metals GmbH covering up to 1,000 tonnes per year of standard grade cobalt metal. The agreement has an initial three-year term with an option to extend for a further three years, and remains subject to a definitive offtake agreement. The company described the term sheet as "an important commercial milestone" supporting financing and development.

The refinery will initially focus on metal production and sales while cobalt sulphate goes through end-user qualification. Financing is progressing alongside the offtake, and alternative Australian feedstocks, including battery black mass, are being assessed. A final engineering and project study report is expected ahead of a Final Investment Decision.

Broken Hill and Technology Centre Progress

At the Broken Hill Cobalt Project, a strategic mine planning assessment supports evaluating a minimum 10-year starter case at 2.5 Mtpa, designed to reduce upfront capital while keeping expansion options open. Mining would start at Pyrite Hill, with the Railway deposit supplying material later. About 95% of mineralised material in the pit shells is in the Measured and Indicated categories. The Scoping Report is expected to be submitted in Q4 2026 to support environmental approvals.

At the Broken Hill Technology Centre, Cobalt Blue recovered a graphite concentrate from battery black mass, which CSIRO's purification method upgraded to battery-grade specification of more than 99.95%. The next phase will test electrochemical performance in battery anodes.

Halls Creek, Corporate and Market Update

At Halls Creek, heap leach testwork is assessing whether Onedin and Sandiego material can be treated together, which could simplify development. An updated Scoping Study is targeted for the December quarter, and documents have been lodged to transfer a 51% interest in the project tenements. Cobalt Blue has also been contracted by Glomar Minerals to contribute to the Preliminary Economic Analysis for a proposed US polymetallic nodule refinery.

Cobalt metal prices fell about 7% during the quarter, while cobalt hydroxide prices fell about 40% as exports from the DRC resumed. The company noted that DRC export quota policy into 2027 remains a key factor for the market. Cash stood at A$2.85 million at 30 September 2026.

Key Takeaways

  • The STG Metals term sheet is an early commercial step for the Kwinana Cobalt Refinery.
  • A smaller starter case at Broken Hill aims to reduce upfront capital requirements.
  • Battery-grade graphite production broadens the company's technology capabilities.
  • Funding and DRC quota policy remain key factors for the company's outlook.