Cobalt Blue shares Pounded; Forfeits Ownership Of Cobalt Project After Missed Deadline

  • Oct 25, 2018 AEDT
  • Team Kalkine
Cobalt Blue shares Pounded; Forfeits Ownership Of Cobalt Project After Missed Deadline

On its Thackaringa cobalt project to meet a mid-2019 deadline, Cobalt Blue will not rush a final feasibility study – from its joint venture partner losing its chance to grab full ownership of the project. By mid-morning on the news, Cobalt Blue (ASX: COB) plummeted more than 20 percent to 23c. Suffering an 8 percent dip to 4.6c was its JV partner Broken Hill Holdings (ASX: BPL).

Cobalt Blue told investors, test-work demonstration plants and feasibility studies would take up to two years, a review of the project concluded. Into a period of only a year to meet the final feasibility timetable, the risk of attempting to fast-track such studies would significantly damage the project and pose undesirable risk.

The company told investors, after a period of negotiations leading to no acceptable commercial outcomes, subsequently Cobalt Blue has now elected out of the earning period process of the farm-in agreement. Company is unable to progress further as a result has elected to stay within the joint venture as a 70 percent partner and within the earning period provision in the farm-in agreement. 

In a short statement to investors, the explorer said Broken Hill was considering the ‘legality, validity and practical implications of Cobalt Blue’s Notice. Further information may be provided in due course.

Before 30 June 2020 shelling out $10.9 million in project expenditure, Cobalt Blue could have earnt up to 100 percent and paying Broken Hill $7.5 million in cash and paying Broken Hill $7.5 million in cash.

2 percent profits of all cobalt produced would be received by Broken Hill. It has cash and cash equivalent of just $2.1 million at the end of June, Cobalt Blue had $9.7m. As at October 25, 2018 the stock of Cobalt Blue traded at a market price of $ 0.227 which is near its 52-week low and the performance change of 62.16% over the past 12 months.


The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.


There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.



All pictures are copyright to their respective owner(s) does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.


We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK