Highlights

  • A 2026 Halls Creek study update outlines shared processing for Onedin and Sandiego.
  • The preliminary pre-tax NPV10 is AUD 317 million on a 100% project basis.
  • The study models about AUD 75 million initial Capital and approximately 11 years of output.
  • More detailed studies, financing and development approvals remain outstanding.

Cobalt Blue Holdings Limited (ASX:COB) develops critical-mineral and base-metal project opportunities in Australia. Its Halls Creek interests in Western Australia encompass the Onedin and Sandiego deposits, which feature copper, zinc and silver. The company’s November 2026 scoping study update revisits the project development concept and economic assumptions. These estimates describe a potential future operation, not an approved mine or realised earnings.

Integrated Processing Changes the Development Concept

The updated Halls Creek concept envisages processing material from Onedin and Sandiego through a shared plant located at Onedin. The revision replaces a previous configuration that included a separate flotation concentration stage for Sandiego. Combining infrastructure may simplify the planned processing sequence, although integration introduces technical and scheduling questions that require more detailed engineering.

Cobalt Blue Holdings Limited (ASX:COB) describes copper cathode, zinc oxide and silver output within the revised design. Silver recovery has been explicitly incorporated into the commercial assessment. This is a material distinction from the earlier configuration because it changes the projected Revenue mix. It does not, however, constitute evidence that the proposed plant has been built or that the stated recoveries will be achieved at operating scale.

Scoping Study Economics and Production Assumptions

The company’s November summary reports a preliminary pre-tax net present value at a 10% discount rate of AUD 317 million and a pre-tax internal rate of return of 47%, each on a 100% project basis. Initial Capital Expenditure is estimated at AUD 75 million. The modelling envisages around 11 years of production and a payback period of approximately three years from commencement of production.

Cobalt Blue Holdings Limited (ASX:COB) presents average annual production assumptions of approximately 4,000 tonnes of copper cathode, 13,000 tonnes of contained zinc as zinc oxide and 130,000 ounces of silver. These are modelled outputs, not current production or guaranteed sales. The economic results depend on assumptions about recoveries, Commodity prices, costs, development timing and exchange rates.

Ownership and Work Required Before Development

Cobalt Blue’s Halls Creek arrangement is a joint venture with Koongie Park, associated with AuKing Mining. The company states that its interest is currently 51% and that it has exercised a right to move toward 75% through additional expenditure of AUD 1.5 million by 30 June 2028. Project economics stated on a 100% basis should not be treated as amounts attributable entirely to Cobalt Blue shareholders.

For Cobalt Blue Holdings Limited (ASX:COB), more advanced study work will need to refine resource inputs, process design, infrastructure requirements and development costs. Any increase in ownership also depends on compliance with the relevant earn-in arrangements. These matters are separate from the preliminary project valuation.

Technical, Funding and Execution Risks

A scoping study operates at an early level of technical confidence. Subsequent metallurgical work could alter recoveries, while engineering, contractor pricing and site logistics may change estimated capital or operating costs. The Kimberley location also makes seasonal access, transport, power and workforce planning material to execution.

Cobalt Blue Holdings Limited (ASX:COB) identifies a pre-feasibility study as the next stage for Halls Creek. Completing further studies will not by itself secure finance, permits or a final development decision. Until those hurdles are addressed, the project’s NPV and IRR should be understood as scenario-based estimates rather than measures of actual financial performance.

Key Insights

The Halls Creek update introduces an integrated processing pathway and silver revenue assumptions alongside revised preliminary economics. More detailed engineering, metallurgy, financing and approvals are required before a development decision. Reported project-level figures should also be distinguished from the company’s attributable ownership interest.