This ASX mining share rocketed 21% today. Here’s why

What shot this cobalt miner’s shares higher today…

| More on:
Boral share price ASX investor wearing a hard hat looking excitedly at a mobile phone representing rising iron ore price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The Cobalt Blue share price jumped 21% today
  • The exploration and mining company has received government support for its Broken Hill project
  • The ASX energy and materials indexes were the highest performing sectors today.

The S&P/ASX 200 Energy Index (ASX: XEJ) was the best performing sector on the ASX today, closing the day 4.89% higher. The S&P/ASX 200 Materials Index (ASX: XMJ) came in second, gaining 2.81%.

The price movements come as global commodity prices climb amid conflict between Russia, Ukraine and the rest of the world.

Against that backdrop, an Aussie cobalt developer has received government support for its project in New South Wales.

At market close, the Cobalt Blue Holdings Ltd (ASX: COB) share price was up 20.65% to 55.5 cents. In comparison, the broader ASX All Ordinaries Index (ASX: XAO) was up 0.21%.

So, what’s going on with this ASX mining share?

Renewable energy project receives Government support

Cobalt Blue’s Broken Hill Cobalt Project (BHCP) was awarded “Major Project Status” by the Australian government today — a move that will support the development of the project over three years.

The project aims to produce “high quality, battery ready cobalt sulphate” for renewable energy solutions.

The company says the project has the potential to be “one of the largest cobalt producers in the world” and has the attention of “more than 30 of the world’s largest battery manufacturers”.

Cobalt Blue said the government grant gives “formal recognition of the national economic implications of the BHCP through its contribution to growth, productivity, government revenue, industry and regional development”.

Further, the company said the project was “the only large scale, ex African, Greenfield primary cobalt project globally”.

Critical minerals projects such as BHCP are integral components of The Australian Critical Minerals Strategy and Australia’s Long Term Emissions Plan as well as aligning with national security and interests to bolster geopolitical stability and building sovereign capability in the sector.

Project to position Australia as ‘number 2 cobalt producer’

Commenting on the development, Cobalt Blue CEO Joe Kaderavek said:

Granting Major Project Status to the Broken Hill Cobalt Project will greatly assist COB to raise development capital by recognising the strategic importance given to this Project by The Australian Government.

This milestone is particularly important for overseas partners and well timed in our development journey.

COB can now boast both Made in Australia and Backed by Australia.

Cobalt Blue share price snapshot

Over the last 12 months, this ASX mining share has increased 37% in value.

It’s also risen more than 12% this year to date.

The company has a current market capitalisation of around $170 million.

Motley Fool contributor Alice de Bruin 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 Bruce Jackson.

More on Materials Shares

a woman smiles as she checks her phone in one hand with a takeaway coffee in the other as she charges her electric vehicle at a charging station.
Materials Shares

This lithium battery materials share is up 44% in two weeks, what’s going on?

This lithium battery materials share is having a good couple of weeks...

Read more »

a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.
Capital Raising

Why did the Arafura share price plunge 19% today?

The mineral exporer emerged from a trading halt this morning.

Read more »

A superhero of power and lightning is fully charged and looking to the future as two brokers weigh in on the outlook for the CBA share price
Materials Shares

Core Lithium share price leaps 5% as industry veteran takes reins

Former Rio Tinto senior leader Gareth Manderson will take on the top job next week.

Read more »

Happy woman miner with her thumb up signalling Wyloo's commitment to back IGO's takeover of Western Areas nickel
Share Gainers

Why has the Lynas share price surged 22% in the last 3 weeks?

It's been a stellar run for the company since the start of FY23.

Read more »

A smiling miner wearing a high vis vest and yellow hardhat and working for Superior Resources does the thumbs up in front of an open pit copper mine, indicating positive news for the company's share price today following a significant copper discovery
Materials Shares

Move over ASX lithium shares, this commodity will be ‘the biggest beneficiary of electrification’: fundie

Could this metal be the real winner of the energy transition?

Read more »

a miner holds his thumb up as he holds a device in his other hand.
Share Gainers

Why did the Core Lithium share price jet 20% higher in July?

What a rollercoaster ride it was for Core Lithium shares last month...

Read more »

Two businesspeople in suits run, one chasing the other.
Materials Shares

Why are ASX lithium shares having such a top run on Wednesday?

One lithium company reports a lithium market that is "surging".

Read more »

a woman stands next to a large green battery smiling and eating an apple with a lifting green arrow line in the background, indicating rising stock prices.
Materials Shares

Pilbara Minerals share price on watch following lithium auction price update

This lithium share will be on watch on Wednesday...

Read more »