Cobalt Blue Holdings Directors Forfeit 1.33 Million Performance Rights After Missing Targets

Joe Kaderavek’s Performance Rights Lapse and Current Holdings in Family and Superfund Accounts

Joe Kaderavek holds his interests in Cobalt Blue Holdings indirectly via two entities: the Kaderavek Family Account, registered to Mr Josef Thomas Kaderavek and Mrs Ariane Louise Kaderavek, and the Kaderavek Superfund Account, also jointly registered. Before 10 July 2026, the Family Account held 5,901,982 fully paid ordinary shares and 3,936,534 performance rights, while the Superfund Account held 2,785,094 fully paid ordinary shares. Mr Kaderavek held no direct securities at the time.

After 852,985 performance rights lapsed on 10 July 2026, the Family Account now holds 5,901,982 fully paid shares and 3,083,549 performance rights. The Superfund Account’s shareholding remained unchanged at 2,785,094 shares, as only performance rights lapsed. The company stated that these rights lapsed due to unmet performance hurdles, with no consideration received, resulting in a nil-value transaction. Mr Kaderavek’s direct shareholding remained zero, consistent with disclosures from 18 December 2025.

Andrew Tong’s Performance Rights Reduction via Minerals and Residues Pty Limited

Andrew Tong’s interests are held indirectly through Minerals and Residues Pty Limited, operating as the Andrew and Lisa Tong Family Account, where he is director and shareholder. His spouse, Mrs Lisa Marie Tong, holds securities in her own name. Prior to 10 July 2026, the family account held 8,778,446 fully paid ordinary shares, 2,209,715 performance rights, 130,435 unquoted options expiring 23 April 2027 at $0.20 exercise price, and 74,074 unquoted options expiring 24 September 2028 at $0.08 exercise price. Mrs Lisa Marie Tong held 21,938 fully paid shares.

Following the lapse of 479,052 performance rights on 10 July 2026, the family account now holds 8,778,446 fully paid shares and 1,730,663 performance rights. Both tranches of unquoted options and Mrs Tong’s shareholding remain unchanged. No consideration was received for the lapsed rights, and Andrew Tong held no direct securities at the notice date. The last prior disclosure for both directors was on 18 December 2025.

Implications of Performance Rights Lapse on Executive Incentives at Cobalt Blue

Performance rights are common in Australian executive remuneration, converting to ordinary shares only if specified operational, financial, or share price targets are met within set timeframes. Failure to meet these conditions results in rights lapsing without payment or shareholder dilution. The company confirmed the lapse was due to unmet performance hurdles but did not specify these conditions.

For investors, the lapse indicates the incentive system is working as intended—directors are rewarded only upon achieving targets. However, it also raises questions about the nature of the missed targets. Cobalt Blue did not disclose whether new performance rights grants are planned. Investors seeking more detail should review the company’s latest annual or remuneration reports.

Overview of Cobalt Blue Holdings and the Thackaringa Cobalt Project

Cobalt Blue Holdings Limited is an Australian resource developer focused on cobalt, a critical mineral for lithium-ion battery production used in electric vehicles and energy storage. Its flagship asset, the Thackaringa Cobalt Project near Broken Hill, NSW, is among Australia’s most advanced cobalt developments. The project is strategically important amid global efforts to diversify battery supply chains away from the Democratic Republic of Congo, which dominates cobalt supply.

The company aims to produce cobalt sulphate, a refined product for battery cathodes, alongside other cobalt derivatives. Activities to advance Thackaringa include feasibility studies, resource drilling, and stakeholder engagement, targeting a final investment decision. Directors Joe Kaderavek and Andrew Tong hold significant equity stakes through shares and performance rights, aligning management incentives with project milestones and shareholder value. The recent lapse of performance rights does not affect the company’s project strategy or asset base.

Effect of Lapsed Rights on Directors’ Total Holdings of Shares and Options

Combined, 1,332,037 performance rights lapsed on 10 July 2026—852,985 from Kaderavek’s indirect holdings and 479,052 from Tong’s. Neither director’s ordinary shareholdings were impacted. Kaderavek’s combined indirect shareholding across Family and Superfund Accounts totals 8,687,076 fully paid shares (5,901,982 + 2,785,094). Tong’s combined indirect shareholding, including his spouse’s shares, is 8,800,384 fully paid shares (8,778,446 + 21,938).

Andrew Tong retains two tranches of unquoted options: 130,435 expiring 23 April 2027 at $0.20 exercise price, and 74,074 expiring 24 September 2028 at $0.08 exercise price. These options were unaffected by the lapse. The company did not disclose total performance rights outstanding company-wide or whether replacement grants for these directors are planned. Investors should consult Cobalt Blue’s securities register and remuneration disclosures for full equity details.

Governance and Disclosure: Reason for Filing Notices on 15 July 2026

The notices filed on 15 July 2026 comply with ASX Listing Rule 3.19A.2 and section 205G of the Corporations Act 2001, which require listed entities to notify the ASX of any changes in directors’ relevant interests, including performance rights lapses. Notices are filed as agents for directors, with disclosed information becoming publicly available. Both directors confirmed no trading occurred during a closed period requiring prior clearance.

Transparent disclosure of director interest changes, including lapses, is key to Australian corporate governance, helping shareholders track executive equity alignment. The simultaneous date of change (10 July 2026) and lodgement (15 July 2026) indicates a coordinated administrative process aligned with the company’s long-term incentive plan review. No separate explanatory statement accompanied the notices.

Risks for Investors to Consider Regarding Cobalt Blue Holdings

Cobalt Blue operates in a high-risk sector. As a development-stage company, it currently generates no revenue from cobalt production. Progress depends on advancing Thackaringa through feasibility, financing, and construction phases, each carrying execution risks. Project financing and partnerships rely partly on cobalt prices, which are volatile and influenced by shifting battery chemistries.

The lapse of performance rights, while routine, may prompt investor questions about project milestone progress and unmet targets. The company did not disclose the specific performance hurdles missed, limiting independent assessment. Additional risks include regulatory approvals, environmental permits, capital market conditions, and commodity price fluctuations. The immediate share price impact of this update was not evident from public data.

Investor Guidance Following Director Interest Disclosure

Investors should monitor announcements on Thackaringa’s development timeline, feasibility results, and financing, as these will more directly affect company value than the performance rights lapse. Executive remuneration and incentive structures warrant attention, especially regarding any new performance rights granted to Joe Kaderavek and Andrew Tong and attached conditions.

Upcoming events such as the annual general meeting, annual report, and remuneration report are expected to provide further insight into the company’s long-term incentive plan and performance conditions. Any subsequent changes in director shareholdings beyond this notice will also be disclosed under ASX rules. The 15 July 2026 company update is a mandatory disclosure and does not include forward-looking statements or operational commentary.