Shares in Cobalt Blue Holdings Ltd (ASX: COB) are tumbling today and have fallen more than 5% in the red at the time of writing.
Whilst there's been nothing sensitive out of the company's camp today, Cobalt Blue shares have thrust 97% higher in 2022 and are up 79% in the last month alone.
What's up with the Cobalt Blue share price?
Cobalt Blue shares popped last month after the company released an operations update that detailed its progress at its mining assets.
It mentioned starting works at the Broken Hill Cobalt Project (BHCP) and Pyrite Hill after completing first blasts there.
As reported by The Motley Fool's Aaron Teboneras at the time, "the underground development will mine between 3,500 to 4,000 tonnes of ore to support 20 weeks of continuous operation of the Demonstration Plant."
The company's share price initially took a hit in the days following the announcement, sliding from a high of 87 cents and cooling off to 77 cents.
A sharp spike in the price of cobalt in early March appears to have also inflected positively on the company's share price. The industrial metal lunged from US$74,000 per tonne to hit US$82,00 a tonne in just two days on 2–4 March, where it has stayed since.
Analysts at Canaccord Genuity are constructive on the stock and rate it as a speculative buy in a note from February.
The firm values Cobalt Blue at 65 cents per share, suggesting it might have to make some revisions, or that Cobalt Blue is overvalued relative to Canaccord's valuation.
Cobalt Blue share price snapshot
In the last 12 months, the Cobalt Blue share price has soared more than 156% and has outpaced all major benchmarks in that time.
During the past month, it is up 79% after a further 26% gain in the previous week of trade. Today's selling pressure is at the same volume as the company's 4-week trading average.
