Why did the Cobalt Blue share price leap 5% this morning?

The Cobalt Blue share price has been exhibiting volatility lately. Here’s why.

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Key points

  • The Cobalt Blue share price launched 5.6% in intraday trade on Monday, hitting a high of 84.5 cents
  • The company hasn't released any news to explain today's movement
  • However, the stock has a wild ride last week amid an update on the company's demonstration plant and the airing of an ABC TV Four Corners episode featuring its flagship project

The Cobalt Blue Holdings Ltd (ASX: COB) share price is back in the green on Monday after last week’s rollercoaster.

There’s been no news from the cobalt developer today. However, there was plenty going on with the stock last week.

At the time of writing, the Cobalt Blue share price is trading at 81 cents, 1.25% higher than its previous close.

Though, earlier today, the stock was trading at 84.5 cents, representing a 5.6% gain.

In comparison, the All Ordinaries Index (ASX: XAO) is currently up 0.21%.

Let’s take a look at what’s been happening with the cobalt stock lately.

What’s going on with Cobalt Blue’s stock?

The Cobalt Blue share price has had a wild ride over the last seven days. It’s possible today’s unexplained movement could be an extension of such volatility.

 The stock launched 13% higher on both Tuesday and Wednesday last week for no obvious reason.

However, the gains came after an episode of ABC’s Four Corners featuring the company was broadcast on Monday night. The episode explored Australia’s critical metals mining boom.

Speaking on the program, Cobalt Blue CEO Joe Kaderavek discussed federal and state government support for the company’s Broken Hill Cobalt Project, demand for its products, and its potential position in the battery-powered future.

But investor elation for the stock soon turned sour. The Cobalt Blue share price tumbled 11% on Thursday following the release of an update on its demonstration plant.

That’s despite the company announcing the plant’s construction was progressing well and it expected mining and concentration operations to begin soon. Additionally, demand for larger-scale samples of the project’s product had been better than expected.

The bigger picture

It’s also worth noting the company’s major commodity’s value hasn’t exhibited any major movements lately.

Cobalt futures surged approximately 15% on the London Metal Exchange over the course of February and March.

However, they’ve been mostly stable since. Cobalt futures have traded at around US$82,000 a tonne for the last 30 days.

Cobalt Blue share price snapshot

Despite its recent volatility, the Cobalt Blue share price has been performing well lately.

It has gained 65% since the start of 2022. It’s also 150% higher than it was this time last year.

Motley Fool contributor Brooke Cooper 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.

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