Cobalt Blue Holdings Ltd. (ASX:COB, OTCPK:CBBHF) – Developing Australia’s First Co Refinery

Initiating Coverage

We are initiating coverage on Cobalt Blue Holdings Ltd., with a BUY (S) rating and A$0.20/sh target price. Cobalt Blue is focused on advancing the Kwinana Co refinery (KCR) in Western Australia, in partnership with Japanese energy conglomerate, Iwatani Corp. The refinery aims to produce 3,000tpa of Co sulfate (from third-party feedstock during Stage 1), a precursor material used in Li ion battery cathodes. Given Co’s role in the green energy transition and its part in helping countries achieve electrification targets, the metal is classified as a critical mineral. With China currently controlling ~80% of refined Co supply, we see the Kwinana refinery, located in a tier 1 jurisdiction, playing a major role in the Allied Nation supply chain.