Why the Cobalt Blue (ASX:COB) share price is rocketing 6% today

The Cobalt Blue share price is on a tear today as the company announced the start of its pilot program. We take a closer look.

| More on:
asx share price increase represented by golden dollar sign rocketing out from white domes of lithium

Image source: Getty Images

The Cobalt Blue Holdings Ltd (ASX: COB) share price is making strong gains today as the company announced the start of its pilot trial. Shares in the exploration company are currently trading 3.8% higher to 41 cents. 

What Cobalt Blue does

Cobalt Blue is primarily involved in exploration, however, it also undertakes project development. On this front, the company is working towards its Broken Hill project in New South Wales.

It sees itself as a green company thanks to its interest in cobalt generation. It is a strategic metal with strong demand used in batteries, gaining traction as the demand for electric vehicles rises. However, as outlined by the company its “ambitious goals are subject to funding availability”.

The small cap currently boasts a market capitalisation of $104 million.

What Happened

Today, Cobalt Blue announced that its pilot plant commissioning plant is well underway. With the first cobalt samples expected shortly.

Following the first samples there will be an independent assay, and then shipments starting in late March.

Moreover, the company outlined that is has secured over 30 partners from around the world. These partners include the company’s from Europe, India, the US, China, and Australia. Notably, there is one partner that is requesting a particularly large sample so that they are able to test if the product is worthy of being an approved supplier. However, these qualifications will take at the very least 12 months to be verified.

Management Comments

Speaking about the program Cobalt Blue’s CEO Joe Kaderavek, said:

With commissioning underway then kicking off our expanded global Cobalt Sample Program later this month, Cobalt Blue is making tremendous strides towards technical and commercial milestones.

About the Cobalt Blue share price

The Cobalt Blue share price has been on a phenomenal run as of late, gaining an astounding 281% in the last year alone.
The company has benefited from the growing interest in lithium stocks over the past six months. The same interest has seen companies like Vulcan Energy Resources Ltd (ASX: VUL) surge higher. 

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

Motley Fool contributor Daniel Ewing 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 Bruce Jackson.

More on Share Market News