There is no ETF that just invests in cobalt. If you only want to invest in cobalt, futures or stocks are the way to go. Here’s a list of the best cobalt stocks to invest in.
Which cobalt stock is the best?
Cobalt Stocks to Buy
- Glencore is a company that manufactures and sell (OTC: GLNCY) Glencore is the world’s largest cobalt producer, having operations in the Democratic Republic of the Congo, Australia, and Canada.
- Wheaton Precious Metals is a company that specializes in precious metals (NYSE: WPM) Wheaton Precious Metals Corporation is a precious metals streaming firm.
Glencore (GLEN)
Despite not being a pure-play cobalt producer, Glencore is the world’s top cobalt producer. Glencore owns and operates two of the world’s largest cobalt mines in the DRC, Katanga and Mutanda. Nickel mining in Australia and Canada also produces cobalt as a by-product. Tesla has agreed to purchase cobalt from Glencore for its Shanghai and Berlin plants.
Glencore manufactures a variety of metals and minerals, including copper, zinc, nickel, and ferroalloys, in addition to cobalt. Copper and nickel are also used in electric vehicle batteries. In addition, the company is one of the major recyclers of spent batteries, which aids in the release of cobalt.
Glencore is a profitable company with revenues of around $142 billion in 2020. Glencore, on the other hand, has a thermal coal industry, making it an undesirable name among environmental, social, and governance (ESG) investors.
China Molybdenum Co (OTCMKTS: CMCLF)
endorsed by the Chinese government China Molybdenum is a major cobalt producer in the world. Tenke Fungurume, a copper and cobalt mine in the Democratic Republic of the Congo, is currently expanding its operations. China Molybdenum, like Glencore, is not a pure-play cobalt company. It’s also a big molybdenum, tungsten, niobium, and copper producer. The Hong Kong Stock Exchange lists China Molybdenum. The company’s stock has a market capitalization of more than $18 billion.
Zhejiang Huayou Cobalt Co Ltd (SHA: 603799)
Huayou Cobalt, a $25 billion business listed on the Shanghai Stock Exchange, is China’s largest cobalt producer. The company provides large battery manufacturers like LG Chem thanks to its DRC mines like Congo DangFang. Other minerals, such as lithium and nickel, have also been added to its portfolio. Huayou Cobalt is a significant cobalt pure-play with over $3 billion in revenue. The only issue is that the company does not have a U.S. listing, and most brokers will not allow you to buy shares listed in mainland China, with a few exceptions.
Nanjing Hanrui Cobalt Co Ltd (SHE:300618)
Another Chinese cobalt company, Nanjing Hanrui Cobalt, operates the Metal Mines in the DRC. The company has a market capitalization of $4 billion and generates roughly $300 million in revenue. This stock, like Huayou Cobalt, is solely listed in mainland China, making it difficult to access for most American investors.
Jinchuan Group International Resources Co Ltd (HKG: 2362)
Jinchuan Group, based in Hong Kong, is another Chinese mining corporation with holdings in cobalt, nickel, platinum, and copper (including the Ruashi cobalt mine in the DRC). The Hong Kong Stock Exchange-listed firm has a market capitalization of $2 billion, with over $500 million in revenue.
Is it possible to exchange Cobalt?
A futures contract is a simple way to get exposure to cobalt. Cobalt futures, on the other hand, are not available for trading on traditional stockbroking platforms like eToro and Libertex. Cobalt futures are held solely by the London Metal Exchange.
The Financial Conduct Authority (FCA) of the United Kingdom regulates the exchange, which allows high-value investors and mining corporations to hedge or speculate on metals like cobalt without risking their cash. Battery suppliers, mining companies, electric vehicle companies, and huge merchant traders can all be found here.
LME cash and duration contractsyou can buy a futures contract for a 3-month holding period, which can be extended to 15 months. Despite the fact that the LME provides cobalt exposure, it is best suited to large-volume traders with significant wallets rather than small-scale investors.
Where can I make a Cobalt investment?
Cobalt futures and cobalt stocks are the two major ways to invest in the metal. The London Metal Exchange trades cobalt futures under the symbol CO. These futures, which were first traded in early 2010, are priced in US dollars per tonne.
What is Tesla’s source of cobalt?
Tesla signed a contract with Glencore, a Swiss mining conglomerate, in 2020. Although most of Glencore’s cobalt comes from the DRC, Tesla’s contract requires suppliers to utilize “conflict-free” minerals.
Who is the world’s largest cobalt producer?
In the Democratic Republic of Congo, the mining industry is the most profitable and important part of the economy. It is their main source of revenue from exports. In 2020, the DRC produced approximately two-thirds of global cobalt, making it the world’s top cobalt producer by a considerable margin.
Will the price of cobalt rise?
Prices, on the other hand, are expected to reduce 8.3% in 2022 due to increased supply and the removal of most supply chain bottlenecks, according to Yu.
In 2022, total cobalt supply is expected to reach 196,000 mt, up from 136,000 mt in 2020 and 164,000 mt in 2021.
On the demand side, S&P MI predicted that cobalt consumption will continue to rise as the impact of cobalt thrifting in batteries is countered by greater plug-in electric car sales.
Total cobalt consumption is expected to climb to 195,000 Mt in 2022, up from 132,000 Mt in 2020 and an estimated 170,000 Mt in 2021, according to the prediction.
However, because supply is predicted to rise as well, the entire cobalt market balance is expected to revert to a surplus of 1,000 Mt in 2022, after falling into an estimated deficit of 8,000 Mt in 2021, following a surplus of 4,000 Mt in 2020.
“A larger supply ramp-up through 2024 will maintain a market surplus over that time, putting downward pressure on pricing,” Yu explained.
Overall cobalt demand, she believes, will benefit from a broader-based recovery in the metallurgical sector and PEVs in 2021, with increased deliveries in the aerospace sector Airbus and Boeing up 51.5 percent year on year in the first nine months of 2021, though these were still down 23.8 percent compared to pre-pandemic levels in the same period of 2019.
Is it true that cobalt costs more than gold?
Affordability of Cobalt Cobalt is a relatively inexpensive metal, particularly when compared to precious metals. It is more expensive than metals like titanium and tungsten, but less so than gold and platinum.