Here’s why the Cobalt Blue (ASX:COB) share price is surging 11% today

As the world reopens, the demand for green energy resources is booming.

| More on:
a woman wearing full miner's uniform, including a hard hat with lamp, high visibility overalls and vest, smiles in front of mining equipment.

Image source: Getty Images

The Cobalt Blue Holdings Ltd (ASX: COB) share price is rocketing in morning trade, up 11% after earlier posting gains of more than 13%.

This comes as the broader All Ordinaries Index (ASX: XAO) is struggling, currently down 0.8%.

Below we take a look at the ASX energy company’s latest announcement that looks to be driving investor interest.

What did Cobalt announce?

Cobalt Blue’s share price is surging after the company reported a 35% increase in its Broken Hill tenement area in New South Wales, following the grant of Exploration Licence 9254.

With Cobalt Blue securing 2 new exploration licences in 2021, its tenement portfolio now extends across some 220 square kilometres.

The company released a mineral resource estimate for its total Broken Hill tenement on 16 September. That comprised of 118 Mt at 859 ppm cobalt-equivalent (687 ppm cobalt, 7.6% sulphur and 133 ppm nickel) for 81,100 tonnes of contained cobalt.

Commenting on the company’s expanding footprint in the region, Cobalt’s CEO Joe Kaderavek said:

The growth in the company’s tenement portfolio reflects a considered step toward securing long-term exploration potential to complement development of the Broken Hill Cobalt Project. Having now established a strong resource base we look forward to applying this blueprint in our future targeting.

Cobalt demand has been growing as the world works to transition away from fossil fuels and towards renewables. Cobalt is found in many new batteries, including lithium-ion batteries, used in electric vehicles (EVs) and for grid storage for renewable sources, like wind and solar.

Cobalt Blue share price snapshot

Over the past 12 months, the Cobalt Blue share price is up a stellar 255%. By comparison the All Ords has gained 19% over the full past year.

Cobalt Blue’s shares are down 1.5% over the past month despite today’s lift.

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 nearly 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 August 16th 2021

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 Bruce Jackson.

More on Materials Shares