Cobalt Blue Holdings Limited

 

COB Details
 
Broken Hill Cobalt Project Updates: Cobalt Blue Holdings Limited (ASX: COB) is focused on green energy technology and mining of cobalt, nickel, and copper, and development of cobalt sulphate. On 19 December 2019, the company announced updates regarding its Broken Hill Cobalt Project (BHCP). The company stated that it has sent BHCP to the Department of Planning, Infrastructure and Environment. The report also stated that the BHCP will now proceed with an application under the NSW Environmental Planning and Assessment Act (1979).
 
Pilot Plant Prospects Updates: On 9 December 2019, the company had provided updates on its Pilot Plant prospects. As per the report, the company is in the process of building a metallurgical testing centre in Broken Hill. The company plans to start the plant by mid-2020, with a target of processing up to 4,000 tonnes of sample. This centre will support the feasibility of the Broken Hill Cobalt Project and will evaluate the application of the technology to other COB projects.
 

Pilot Plant Prospects (Source: Company Reports)
Broken Hill Prospecting and COB Agree Terms for COB Thackaringa Buyout: On 4 December 2019, the company announced that Broken Hill Prospecting and Cobalt Blue Holdings have jointly agreed on the terms and conditions for COB to secure 100% ownership and Legal Title of the Broken Hill (Thackaringa) Cobalt Project. 
 
Cash flow Details for the September Quarter: In the September quarter, the company reported net cash used in operating activities of $771k, net cash used in investing activities of $314k and net cash from financing activities of $58k. The company exited the September quarter with cash and cash equivalents of $3,598k. In the coming quarter, cash outflow is expected to be $1,275k.
 

Cash Flow Estimates (Source: Company Reports)
 
Stock Recommendation: As per ASX, the company’s stock is trading below the average of its 52-weeks trading range of $0.097 - $0.240. As on 20 December 2019, the company’s market capitalisation stands at ~$19.49 million, with 149.9 million outstanding shares.  A strong worldwide market for lithium ion batteries is giving Australia with a solid prospect to develop a battery minerals mining, processing and manufacturing expertise. Cobalt Blue Holdings Limited stands to benefit from this trend and meets the growing demand of lithium-ion battery in the industry. Considering the aforesaid facts, we give a “Speculative Buy” recommendation on the stock at the current market price of $0.140, up 7.692% on 20 December 2019. 

 
COB Daily Technical Chart (Source: Thomson Reuters)
 

Core Lithium Limited

 

CXO Details
 
Completes the Acquisition of New lithium project: Core Lithium Limited (ASX: CXO) is involved in the production of lithium and base metals via enhancement of its Finniss Lithium Project, located in the Northern Territory in Australia. On 17 December 2019, Core Lithium Ltd concluded the buyout of a Walanbanbalithium project located near the Anningie and Barrow Creek (ABC) Lithium Project. The company has issued 1,317,792 of its shares as part of the consideration at a price of ~$0.038 per share.
 
Shareholder Update: On 20December 2019, the company announced that Heath Hellewell, Director on the Board, disposed of 400,000 performance rightsshares. Total number of securities held after disposal stood at 5,000,000 Options. The company also announced that Gregory English, another director of the company disposed of 400,000 performance rightsshares on the lapse of the rights.
 
Changes in Equity Securities: On 20 December 2019, the company announced the issuance of 450,000 fully paid ordinary shares in the company for nil consideration. In addition, the company also announced the issue of 392,156 fully paid ordinary shares at a price of $0.051 per share. On 17 December 2019, Core Lithium Limited also issued 1,317,792 fully paid ordinary shares for around $0.038 per share.
 
September ’19 Quarter Highlights:During the period, Core Lithium Limited received approval from the Foreign Investment Review Board for Lithium Royalty Corporation’s (LRC) $8.12 million investment, for a royalty of 2.5% over future production from the Finniss project. The company reported a net operating cash outflow of $2,176K for the quarter. The company exited the quarter with cash and cash equivalents of $7,146K. For the coming quarter, cash outflow is expected to be $2,890k.
 

Cash Flow Estimates (Source: Company Reports)
 
Stock Recommendation: As per ASX, the stock is trading below the average of 52-weeks trading range of $0.031 and $0.062. As on 20 December 2019, the company’s market capitalisation stands at ~$29.29 million, with 791.68 million outstanding shares.  The shares of the company have gone up around 3% in the past one month. The company intends to increase the mine-life and initiate mining and construction in the coming years. Considering the recent developments, including the acquisition of lithium project, world-class pegmatite intersection at the Finniss project, price movement and current trading levels, we give a “Speculative Buy” recommendation on the stock at the current market price of $0.036, down 2.703% on 20 December 2019. 

 
CXO Daily Technical Chart (Source: Thomson Reuters)

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