Top 10 Cobalt Stocks to Buy in December 2023

Experts anticipate that the increasing demand for renewable energy will propel the demand for cobalt stocks. This is due to the fact that cobalt is a crucial component in lithium-ion batteries, which power a wide range of devices, including electric vehicles and other renewable energy applications.

China, Europe, and the U.S. are the three largest markets for electric vehicles. In 2021, China accounted for 48% of global electric vehicle sales, followed by Europe with 23% and the U.S. with 19%.

Furthermore, the growing demand for lithium-ion batteries and cobalt is expected to drive substantial expansion in these markets.

A few major producers, namely Glencore, China Molybdenum, and Vale, currently dominate the cobalt market. These companies possess substantial cobalt reserves and are strategically positioned to capitalize on the increasing demand for this resource.

Therefore, investors interested in the cobalt mining stocks should carefully consider investing in companies engaged in cobalt mining, production, or refining.

How is Cobalt Used?

Cobalt is used in a variety of applications, including:

• Electric vehicle batteries: Cobalt is a key component in the cathodes of lithium-ion batteries, which are used in electric vehicles.
• Smartphones: Cobalt is used in the manufacture of smartphones, particularly in the display screens.
• Medical devices: Cobalt is used in the manufacture of medical devices, such as pacemakers and defibrillators.
• Other applications: Cobalt is also used in the manufacture of magnets, high-speed steel, and other products.

What is Cobalt?

Cobalt is a chemical element with the symbol Co and atomic number 27. It is a hard, lustrous, blue-gray metal that is chemically similar to nickel. The Earth’s crust contains small quantities of cobalt, a transition metal. Cobalt is typically found in association with other metals, including nickel, copper, and iron.

Demand for Cobalt

Out of all of the applications, EVs are expected to be a leading driver of demand for cobalt, as they require more cobalt than traditional gasoline-powered vehicles.

The International Energy Agency (IEA) projects that demand for cobalt will increase by 50% by 2025 and by 100% by 2030. This growth in demand is expected to drive up the price of cobalt, making it a potentially lucrative investment opportunity.

US Cobalt Spot Price data by YCharts

The Best Cobalt Stocks to Buy

There are a number of cobalt mining stocks that investors may want to consider. Some of the best cobalt stocks to buy include:

• Glencore (LSE: GLEN. L)
• Freeport-McMoRan Inc. (NYSE: FCX)
• China Molybdenum Co., Ltd. (HKSE: 3993.HK)
• Vale S.A. (NYSE: VALE)
• Sherritt International Corp. (TSX: S)
• Cobalt 27 Capital Corp. (TSXV: CBB)
• Wheaton Precious Metals Corp. (NYSE: WPM)
• Panoramic Resources Ltd. (ASX: PAN)
• Red Rock Resources Ltd. (TSXV: ROK)
• Horizonte Minerals Ltd. (TSXV: HZM)

Glencore (LSE: GLEN. L)

• Stock price as of March 8, 2023: $10.26
• Market capitalization: $53.7 billion
• 52-week high: $16.00
• 52-week low: $9.61
• Dividend yield: 3.4%

First on our list of cobalt mining stocks is Glencore. A multinational commodity trading and mining company headquartered in Switzerland. It is one of the world’s largest producers of cobalt, copper, nickel, and zinc. Glencore’s cobalt production comes from a variety of sources, including mines in the Democratic Republic of the Congo, Australia, and Canada.

In 1974, Marc Rich & Co. established its foundation in Baar, Switzerland. The company underwent a name change in 1994, becoming Glencore. Glencore operates as a publicly traded company and holds listings on both the London Stock Exchange and the New York Stock Exchange. Its operations span across more than 50 countries.

Glencore’s cobalt production comes from a variety of mines, including the Mutanda mine in the Democratic Republic of the Congo, the Katanga mine in the Democratic Republic of the Congo, and the Murrin Murrin mine in Australia. Glencore also has a cobalt refinery in Kokkola, Finland.

In 2021, Glencore produced 18,000 tonnes of cobalt. This represented a 17% increase from the company’s production in 2020. Glencore is the world’s largest producer of cobalt, and it accounts for approximately 20% of the global cobalt market.

Freeport-McMoRan (NYSE: FCX)

• Stock price as of March 8, 2023: $42.79
• Market capitalization: $64.9 billion
• 52-week high: $56.50
• 52-week low: $34.04
• Dividend yield: 0.8%

Freeport-McMoRan, an American natural resources company headquartered in Phoenix, Arizona, holds the distinction of being one of the world’s largest producers of copper, gold, and molybdenum. Additionally, the company’s cobalt production stems from its Tenke Fungurume mine in the Democratic Republic of the Congo.

Established in 1912 by the Freeport Sulphur Company, Freeport-McMoRan underwent a significant transformation in 1981 when it merged with the McMoRan Exploration Company and adopted the name Freeport-McMoRan. Notably, the company is listed on the New York Stock Exchange and operates as a publicly traded entity.

At present, Freeport-McMoRan’s Tenke Fungurume mine holds the distinction of being the largest cobalt mine worldwide. With an annual cobalt production of approximately 7,000 tonnes, Freeport-McMoRan stands as the second-largest global producer of cobalt, accounting for roughly 15% of the global cobalt market.

China Molybdenum Co., Ltd. (HKSE: 3993.HK)

• Stock price as of March 8, 2023: HK$49.25
• Market capitalization: $156.5 billion
• 52-week high: HK$79.50
• 52-week low: HK$38.00
• Dividend yield: 1.1%

China Molybdenum Co., Ltd., a Chinese mining company headquartered in Beijing, holds a prominent position as one of the world’s largest producers of molybdenum, copper, and tungsten. Notably, the company’s cobalt production originates from its Jinchuan mine in China.

Initially established in 1955 as the Jinchuan Nonferrous Metals Company, the entity underwent a significant transformation in 1999 when it was renamed China Molybdenum Co., Ltd. Serving as a publicly traded company, China Molybdenum Co., Ltd. holds a listing on the Shanghai Stock Exchange, contributing to its strong market presence.

Distinguished as the world’s largest molybdenum mine, China Molybdenum Co., Ltd.’s Jinchuan mine showcases impressive production figures, reaching approximately 100,000 tonnes of molybdenum per year. Furthermore, the company stands as the world’s third-largest producer of cobalt, accounting for approximately 10% of the global cobalt market.

Vale S.A. (NYSE: VALE)

• Stock price as of March 8, 2023: $12.69
• Market capitalization: $104.4 billion
• 52-week high: $22.55
• 52-week low: $10.45
• Dividend yield: 1.9%

Next on our list of cobalt mining stocks is Vale S.A. A Brazilian multinational mining company headquartered in Rio de Janeiro, is one of the world’s largest producers of iron ore, nickel, and copper. In 2002, the company renamed itself from Companhia Vale do Rio Doce. Founded in 1942, it is a publicly traded company listed on the São Paulo Stock Exchange and the New York Stock Exchange.

Furthermore, Vale S.A.’s cobalt production specifically originates from its Moatize mine in Mozambique. Notably, the Moatize mine holds the distinction of being the world’s largest nickel mine, yielding approximately 150,000 tonnes of nickel per year. In addition to its significant nickel output, Vale S.A. ranks as the world’s fourth-largest cobalt producer, contributing around 5% to the global cobalt market.

Sherritt International Corp. (TSX: S)

• Stock price as of March 8, 2023: $1.31
• Market capitalization: $1.4 billion
• 52-week high: $2.36
• 52-week low: $1.17
• Dividend yield: 0.7%

Sherritt International Corp. is a Canadian mining company headquartered in Toronto. It is one of the world’s largest producers of nickel, cobalt, copper, and uranium. Sherritt International Corp.’s cobalt production comes from its Moa Bay mine in Cuba and its Ambatovy mine in Madagascar.

The Sherritt Gordon Mines Company founded Sherritt International Corp. in 1927. The company underwent a name change in 1974 and now operates as a publicly traded company listed on both the Toronto Stock Exchange and the New York Stock Exchange.

Sherritt International Corp.’s Moa Bay mine is the world’s largest primary nickel producer outside of Australia. The mine produces approximately 40,000 tonnes of nickel per year. Sherritt International Corp.’s Ambatovy mine is the world’s second-largest primary cobalt producer. The mine produces approximately 10,000 tonnes of cobalt per year. Sherritt International Corp. is the world’s fifth-largest producer of cobalt, and it accounts for approximately 4% of the global cobalt market.

Cobalt 27 Capital Corp. (TSXV: CBB)

• Stock price as of March 8, 2023: $4.18
• Market capitalization: $1.4 billion
• 52-week high: $7.85
• 52-week low: $3.60
• Dividend yield: N/A

Cobalt 27 Capital Corp., a Canadian mining company headquartered in Toronto, focuses on developing cobalt projects in the Democratic Republic of the Congo. The company’s flagship project, the Kamoa-Kakula project, ranks among the world’s largest undeveloped cobalt deposits.

Founded in 2017, Cobalt 27 Capital Corp. operates as a publicly traded company listed on the TSX Venture Exchange.

The Kamoa-Kakula project, situated in the Democratic Republic of the Congo, contains an estimated 77 million tonnes of ore with an average cobalt grade of 3.8%. The project is projected to yield approximately 215,000 tonnes of cobalt per year. A 39.6% stake in the Kamoa-Kakula project is owned by Cobalt 27 Capital Corp.

Wheaton Precious Metals Corp. (NYSE: WPM)

• Stock price as of March 8, 2023: $44.94
• Market capitalization: $27.1 billion
• 52-week high: $65.17
• 52-week low: $37.82
• Dividend yield: 1.8%

Wheaton Precious Metals Corp. is a Canadian precious metals streaming company headquartered in Vancouver. It is a leading provider of precious metals streaming services, and it has agreements to purchase cobalt from a number of different producers. Wheaton Precious Metals Corp.’s largest cobalt purchase agreement is with Vale S.A.

Founded in 2007, Wheaton Precious Metals Corp is a publicly traded company. It is listed on the Toronto Stock Exchange and the New York Stock Exchange.

Also, Wheaton Precious Metals Corp. has agreements to purchase cobalt from a number of different producers, including Vale S.A., Glencore, and Freeport-McMoRan. Wheaton Precious Metals Corp.’s cobalt purchase agreements total approximately 100,000 tonnes per year.

Panoramic Resources Ltd. (ASX: PAN)

• Stock price as of March 8, 2023: A$0.21
• Market capitalization: $240 million
• 52-week high: A$0.47
• 52-week low: A$0.18
• Dividend yield: N/A

Panoramic Resources Ltd., an Australian mining company headquartered in Perth, actively focuses on the development of the Tamarack Cobalt Project in Ontario, Canada. The company established itself in 2010 and currently operates as a publicly traded entity on the ASX.

With a firm commitment to progress, Panoramic Resources Ltd. is actively advancing the Tamarack Cobalt Project, which stands as one of the world’s largest undeveloped cobalt deposits. Situated in the Timmins mining district of Ontario, Canada, the project boasts an estimated 110 million tonnes of ore with an average cobalt grade of 0.8%. Anticipated to yield approximately 10,000 tonnes of cobalt per year, the project holds a 100% stake owned by Panoramic Resources Ltd.

The company’s focus on developing the Tamarack Cobalt Project is a strategic move, as the project has the potential to be a major source of cobalt for the global market. Cobalt, a critical mineral, finds application in various sectors such as electric vehicles, batteries, and magnets. The increasing demand for cobalt is anticipated to stimulate price escalation, potentially rendering the Tamarack Cobalt Project a lucrative investment for Panoramic Resources Ltd.

Panoramic Resources Ltd. has been profitable in each of the past five years, and it has a strong balance sheet with no debt. This financial strength will allow the company to fund the development of the Tamarack Cobalt Project and to take advantage of the growing demand for cobalt.

Red Rock Resources Ltd. (TSXV: ROK)

• Stock price as of March 8, 2023: C$0.08
• Market capitalization: $120 million
• 52-week high: C$0.18
• 52-week low: C$0.06
• Dividend yield: N/A

Red Rock Resources Ltd., an Australian mining company headquartered in Perth, actively concentrates its efforts on the development of the Broken Hill Cobalt Project in New South Wales, Australia. Established in 2010, the company operates as a publicly traded entity on the ASX.

The Broken Hill Cobalt Project, one of the largest undeveloped cobalt deposits globally, resides within the mining district of Broken Hill in New South Wales, Australia. Its estimated reserves encompass approximately 100 million tonnes of ore, possessing an average cobalt grade of 0.5%. Projections indicate an annual cobalt production of around 5,000 tonnes from the project. Red Rock Resources Ltd. fully owns the Broken Hill Cobalt Project, holding a 100% stake.

Red Rock Resources Ltd.’s strategic focus on developing the Broken Hill Cobalt Project stems from its significant potential to emerge as a key cobalt source for the global market. Cobalt, a critical mineral employed across diverse applications such as electric vehicles, batteries, and magnets, is witnessing growing demand that is projected to bolster prices. This anticipated price increase positions the Broken Hill Cobalt Project as a potentially profitable investment for Red Rock Resources Ltd.

The company’s strong track record of profitability is also a positive sign. Like Panoramic Resources, Red Rock has been profitable in each of the past five years, and it has a strong balance sheet with no debt. In short, this financial strength will allow the company to fund the development of the Broken Hill Cobalt Project and to take advantage of the growing demand for cobalt.

Horizonte Minerals Ltd. (TSXV: HZM)

• Stock price as of March 8, 2023: C$0.23
• Market capitalization: $340 million
• 52-week high: C$0.41
• 52-week low: C$0.19
• Dividend yield: N/A

Rounding off our list of cobalt mining stocks is Horizonte Minerals. A Canadian mining company headquartered in Vancouver, actively focuses on the development of the Araguaia Nickel-Cobalt Project in Brazil. The company initiated its operations in 2009 and presently operates as a publicly traded entity on the TSX Venture Exchange.

The Araguaia Nickel-Cobalt Project, categorized as one of the world’s largest undeveloped nickel-cobalt deposits, is located in the Carajás mineral province of Brazil. With an estimated ore reserve of 1.2 billion tonnes boasting an average nickel grade of 1.5% and cobalt grade of 0.2%, the project holds the potential for an annual production of approximately 30,000 tonnes of nickel and 6,000 tonnes of cobalt. Horizonte Minerals Ltd. possesses a 100% stake in the Araguaia Nickel-Cobalt Project.

The strategic focus of Horizonte Minerals Ltd. on developing the Araguaia Nickel-Cobalt Project stems from its recognition as a significant potential source of cobalt for the global market. Cobalt, a critical mineral extensively utilized in various applications such as electric vehicles, batteries, and magnets, witnesses growing demand projected to drive price escalation. Consequently, the Araguaia Nickel-Cobalt Project holds the potential to emerge as a profitable investment for Horizonte Minerals Ltd.

In summary, Horizonte Minerals Ltd. is a well-positioned company poised to capitalize on the increasing demand for cobalt. With a solid track record of profitability, the company actively focuses on the development of a substantial cobalt source to cater to the global market.

Investing in Cobalt Stocks

There are a few things to keep in mind when investing in cobalt stocks. It is very important to understand the risks involved. Cobalt is a volatile commodity, and its price can fluctuate significantly.

Also, about 70% of cobalt production comes out of the Democratic Republic of the Congo (DRC), a country that continues to experience serious human rights violations, mass killings, inter-communal violence and armed conflicts.

Additionally, the second highest producer of cobalt is Russia. As of February 2023, EU sanctions had not altered Russian cobalt production. However, an April 2022 round of sanctions from the US hit Russian cobalt with a 45 percent duty that will expire on January 1, 2024.

Investors in cobalt mining stocks should continue to stay up-to-date with the latest information regarding supply chains, as battery manufacturer production could be affected.

Here are some additional factors to consider when investing in cobalt stocks:

• Production capacity: How much cobalt can the company produce? This determines how much cobalt the company can sell and how much revenue it can generate.
• Reserves: How much cobalt does the company have in its reserves? This will let you know how long the company can continue to produce cobalt.
• Cost structure: How much does it cost the company to produce cobalt? This affects how much profit the company can make from each unit of cobalt it sells.
• Marketing and sales strategy: How does the company market and sell its cobalt? This determines how many customers the company can attract and how much cobalt it can sell.
• Financial strength: How financially strong is the company? This establishes how well the company can weather economic downturns and other challenges.
• Management team: How experienced and capable is the company’s management team? This will show how well the company can execute its business plan and achieve its goals.

By carefully considering these factors, investors can increase their chances of success when investing in cobalt stocks.

In conclusion, investors should carefully consider these risks before investing in cobalt mining stocks.

10 Ways to Invest in Cobalt Stocks

1. Buy shares of cobalt mining companies

This is the most direct way to invest in cobalt stocks. By buying shares of a company that mines or produces cobalt, you can profit from the rising demand for this metal.

2. Buy shares of companies that use cobalt in their products 

This includes companies that make electric vehicles, batteries, and other products that use cobalt.

3. Buy cobalt ETFs

Exchange-traded funds (ETFs) are a type of investment that tracks a basket of stocks or other assets. There are a number of ETFs that track the price of cobalt, such as the Global X Lithium & Battery Technology ETF (LIT) and the VanEck Vectors Rare Earth/Strategic Metals ETF (REMX).

4. Buy cobalt futures contracts

Cobalt futures contracts are agreements to buy or sell a certain amount of cobalt at a certain price on a future date. This can be a risky investment, but it can also be a way to profit from large swings in the price of cobalt.

5. Invest in cobalt mining companies through a mutual fund

There are a number of mutual funds that invest in cobalt mining companies. This can be a good way to diversify your investment and reduce your risk vs buying individual cobalt stocks.

6. Invest in cobalt mining companies through a private equity fund

Private equity funds are a type of investment that invests in private companies. There are a number of private equity funds that invest in cobalt mining companies. Investing in cobalt stocks can be a good way to get involved in the cobalt mining industry. However, it is important to do your research and understand the risks before investing.

7. Start your own cobalt mining company

This is a risky investment, but it can also be very rewarding. If you have the experience and the resources, starting your own cobalt mining company can be a great way to get involved in the cobalt mining industry.

8. Invest in cobalt mining technology

There are a number of companies that are developing new technologies for mining cobalt. Therefore, investing in these companies can be a way to profit from the growth of the cobalt mining industry.

9. Invest in cobalt recycling companies

Cobalt is a valuable metal, and there is a growing demand for recycled cobalt. Investing in cobalt recycling companies can be a way to profit from the growth of the cobalt recycling industry.

10. Invest in cobalt research

There is a lot of research being done on cobalt. Investing in cobalt research can be a way to profit from the development of new uses for cobalt.

Cobalt Stocks – Conclusion

Overall, cobalt is a critical mineral with a bright future. The world’s transition to a clean energy future is expected to drive up the demand for cobalt, significantly growing the market for cobalt stocks in the coming years. This growth in demand could make cobalt a potentially lucrative investment opportunity. However, it is important to note that the price of cobalt is volatile and can be affected by a variety of factors. Therefore, it is important to do your research before investing in cobalt.