Why did the Cobalt Blue share price come off the boil in April?

The miner is enjoying a rare good day after weeks of losses.
The post Why did the Cobalt Blue share price come off the boil in April? appeared first on The Motley Fool Australia. –

The Cobalt Blue Holdings Ltd (ASX: COB) share price has taken a hit these past few weeks.

After a strong start to 2022 – shares are up 60% this year to date – the Cobalt Blue share price swept 10% into the red during April.

In the first part of this week, the shares fell another 12% between Friday’s close and Wednesday’s close. However, they have rebounded today and are currently up 6.67% at 80 cents.

What’s been happening at Cobalt Blue?

April was a fairly quiet month for the miner. Early on, investors bid up its share price amid an update to its Broken Hill Cobalt Project (BHCP), released the month earlier.

By that time, Cobalt Blue had surged 79% in the month to April 5, propelled by a substantial lunge in the price of cobalt.

These pricing strengths have extended into today’s market, holding the line at over $80,000 per tonne.

“Cobalt futures were hovering above the $80,000 per tonne level in May, their highest since June 2018 and up 16% this year and around amid continued strong demand from the electric vehicle sector,” Trading Economics reports.

On the supply side, cobalt production has been pushed to its limits as any nation producing electronics is a cobalt buyer. On top of that, mounting sanctions on Russia, which account for roughly 4% of the world’s cobalt production, for invading Ukraine intensified concerns over the commodity’s supply.

Aside from that, the company was awarded a $15 million critical minerals accelerator initiative grant in late April, after a relatively quiet month.

“The Broken Hill Cobalt Project has received a significant boost by being awarded $15 million via the Australian Government’s Critical Minerals Accelerator Initiative,” chairman Rob Baincardi said.

“We applaud the Australian Government’s support in assisting mid-stage critical minerals projects overcome the substantial technical, regulatory and financial barriers for the establishment of greenfield projects such as the BHCP.”

That announcement came a day after the company’s quarterly activities and cash flow report.

Cobalt Blue share price snapshot

The Cobalt Blue share price has soared 128% higher in the last 12 months of trade, although has struggled in more recent times.

Over the past month, shares have slipped 20%, coming off a three-month high of $1.03 on 4 April.

The post Why did the Cobalt Blue share price come off the boil in April? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Cobalt Blue right now?

Before you consider Cobalt Blue, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Cobalt Blue wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

More reading

Is the Webjet share price now a buy amid ‘strong’ travel demand?
ASX 200 midday update: NAB disappoints, Qantas announces acquisition
Here’s why the Magnis share price is charging higher today
The Federal Reserve just raised interest rates — what does it mean to investors?
Airtasker share price dives 6% as trading resumes

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US & HK* Trades. Click Here!