12th May 2025 10:01
(Alliance News) - Cobalt Holdings PLC on Monday said it intends to start trading on the Main Market of the London Stock Exchange next month.
The company created primarily to purchase and hold physical cobalt and the "only company offering public equity investors pure-play direct exposure to the price of cobalt" plans to raise about USD230 million through its global offer and the possible admission of its shares to trading on the Main Market.
Cobalt said the "current oversupply in the cobalt market presents a significant opportunity to acquire cobalt below long-term average prices, with demand expected to increase from multiple end-use industrial applications such as the production of high-performance batteries: a core component of electric vehicles, portable electronics and energy storage systems".
Cobalt's chief executive officer is Jake Greenberg, its chief financial officer is David Haughie and the proposed independent chair is Josephine Bush.
The firm has agreed a six-year supply contract with Glencore PLC for the supply of cobalt worth up to USD1 billion, as well as a further supply contract to acquire up to 1,500 tonnes of cobalt from Anchorage in 2031.
Cobalt has made an initial USD200 million purchase of cobalt from Glencore at a discount to Monday's spot price.
CEO Greenberg said: "Our strategy is simple: to provide equity investors with direct, pure-play exposure to the price of cobalt through a low-risk, low-cost business model that sees us buying physical cobalt and holding it for the long-term...We anticipate that supply and demand will come back into balance over the coming years and will create the necessary conditions to incentivise investment in new mines and refining capacity in the West, all of which are essential to deliver the energy transition."
By Tom Budszus, Alliance News slot editor
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