10 Best Cobalt Stocks In Canada (Oct 2022)

Canada has the seventh-largest cobalt reserves in the world, and the top producer (Domestic Republic of Congo) has more reserves than the next ten countries combined.

This skews the market a bit, especially if you consider the fact that cobalt is the most expensive part of Lithium-Ion batteries and makes up about a quarter of the total cost.

And with EVs on the rise, an essential ingredient like cobalt might be an asset worth investing in, if not directly, then through the best cobalt stocks in Canada.

Best Cobalt Stocks In Canada

It’s important to note that there are few dedicated cobalt producers in Canada. Most Canadian cobalt companies are primarily nickel or silver companies that produce cobalt as a by-product.

Wheaton Precious Metals Stock

  • Ticker: WPM.TO
  • Industry Niche: Precious metal streaming
  • Forward Dividend Yield: 1.74%
  • Dividend Payout Ratio: 35.52%
  • Dividend Yield (12-Month Trailing): 1.28%
  • Upcoming Dividend Date: Sep 08, 2022
  • Market Cap: $20.97 Billion
  • Forward P/E Ratio: 43.39

Wheaton is a streaming company that usually buys part or all of the metal produced by the mines/mining companies it finances, usually at a discounted price.

And since its stake is purely financial, there is relatively low risk, and the portfolio is significantly more diverse and spread out than a miner’s. It has access to cobalt through its contract with Vale.

Only a small portion of its revenue comes from cobalt (4% in the next five years expected), but the amount of cobalt it gets from the producers/have access to is massive.

Wheaton is a decent cyclical growth stock and a modest dividend stock. You need to buy the dip (as deep as you potentially can) to get the best of both worlds.

Jervois Global Stock

Jervois Global Stock
  • Ticker: JRV.V
  • Industry Niche: Nickel and cobalt production and refining
  • Forward Dividend Yield: N/A
  • Market Cap: $723.59 Million
  • Forward P/E Ratio: 0
  • Average Analyst Rating: 1.0 - Strong Buy

Jervois is headquartered in Australia and cross-listed in Canada in 2017. The company has operations in multiple countries, including the US, Finland, and Brazil, and it aims to become one of the largest suppliers of cobalt to the global EV industry.

It owns the largest nickel and cobalt refinery currently in existence in Latin America. The US operation (Idaho) will be the first operational cobalt-only mine in the country.

The company generates a decent portion of its revenue from the battery market though the chemical market still retains the top spot.

Anglo Pacific Group Stock

Anglo Pacific Group Stock
  • Ticker: APY.TO
  • Industry Niche: Essential metals royalty and streaming
  • Forward Dividend Yield: 4.32%
  • Dividend Payout Ratio: 68.08%
  • Dividend Yield (12-Month Trailing): 3.71%
  • Upcoming Dividend Date: Oct 26, 2022
  • Market Cap: $588.98 Million

The UK-based Anglo Pacific is a royalty and streaming company that focuses on a variety of metals, including cobalt.

Its extensive portfolio of royalty and streaming includes two cobalt-based projects, one in the production stage and one in development.

The company’s exposure to cobalt is akin to Wheaton’s exposure to it, though Anglo Pacific’s heavy lean towards base metals, many of which are used in batteries, offers it a higher degree of overlap with the battery industry.

The stock is a relatively slow mover, so the potential for loss and profit both is relatively muted.

Sherritt International Stock

Sherritt International Stock
  • Ticker: S.TO
  • Industry Niche: Cobalt and nickel producer
  • Forward Dividend Yield: N/A
  • Market Cap: $154.89 Million
  • Forward P/E Ratio: 2.19
  • Average Analyst Rating: 2.2 - Buy

Sherritt is one of Canada’s largest producers of high-purity nickel and cobalt. Its main production facility is in Moa, Cuba, and the mined (and partly processed) raw material is refined in Canada.

The reserves in Cuba are significantly higher than in Canada, with relatively fewer competitors due to the disputed nature of the region. This gives Sherritt a significant competitive advantage.

And even though the company is more oriented toward nickel, its cobalt production capacity ensures that a spike in cobalt demand may reflect in the company’s financials and stock as well.

Electra Battery Materials Stock

Electra Battery Materials Stock
  • Ticker: ELBM.V
  • Industry Niche: Battery materials park
  • Forward Dividend Yield: N/A
  • Market Cap: $137.87 Million
  • Forward P/E Ratio: 48.56
  • Average Analyst Rating: 1.7 - Buy

Electra has a vision – North America’s first sustainable battery material park, and as the most expensive battery metal, cobalt has an important place in that vision. In the first step of its positioning in the EV battery supply chain, the company has commissioned a battery-grade cobalt sulphate plant (local extraction).

And cobalt is one of its six primary planned products. Once functional, it will be the only refinery of its kind (and capacity) in North America.

Nickel 28 Capital Stock

  • Ticker: NKL.V
  • Industry Niche: Nickel and cobalt production and royalties
  • Forward Dividend Yield: N/A
  • Market Cap: $85.95 Million
  • Forward P/E Ratio: 3.65
  • Average Analyst Rating: 2.5 - Buy

Nickel 28 focuses on the two most precious and expensive battery metals – nickel and cobalt, and it’s well-positioned for the production of both.

And through its four royalties (out of 13), it also stands to gain a lot (financially) from the price upswings of cobalt.

Through just one of its projects (Ramu Nickel-Cobalt Operation), where it has a relatively small stake, the company has a production capacity of around 800,000 pounds per annum.

Fortune Minerals Stock

Fortune Minerals Stock
  • Ticker: FT.TO
  • Industry Niche: Development stage mining
  • Forward Dividend Yield: N/A
  • Market Cap: $26.91 Million

Fortune Minerals is a fraction of what it used to be in its glory days. It’s a Canadian development stage mining company that is currently focused on one project (NICO), which holds reserves for multiple metals, including cobalt.

It has rights on some other projects as well, and the financials are not as tightly tied to cobalt as most other companies on this list.

Namibia Critical Metals Stock

Namibia Critical Metals Stock
  • Ticker: NMI.V
  • Industry Niche: Exploration
  • Forward Dividend Yield: N/A
  • Market Cap: $28.51 Million

As the name suggests, this mining company focuses primarily on Namibia. It has a portfolio of projects there that it has been developing since 2005.

It acts as a regional partner to mining companies and other metal-related businesses that wish to extract critical metals from Namibia.

The company is currently positioning itself as a major exploration partner for cobalt producers entering the region. And even though none of its active projects are focused on cobalt, this may change in the coming years.

Canada Silver Cobalt Works Stock

  • Ticker: CCW.V
  • Industry Niche: Exploration and development
  • Forward Dividend Yield: N/A
  • Market Cap: $22.31 Million

Canada Silver Cobalt’s primary focus is exploring and developing silver resources in Canada, and cobalt is the major by-product.

It has multiple projects in place with decent inferred resource quantities. Even though silver is its primary production and the financials and the stock are more likely to sway with silver prices, the company has already started positioning itself in the cobalt space, thanks to its decent production capacity.

Cobalt – Market Dynamics

Cobalt prices have seen a drastic shift in the last decade.

The price is per ton of cobalt, and it has experienced two spikes in the last decade, going up as much as 400% from the lowest to the highest point.

This indicates volatility and massive scope for growth, both of which can be very attractive traits if you can capitalize on them properly.

The EV boom is expected to be the largest catalyst for driving up cobalt demand around the globe, and the current projections suggest that the demand is going to outpace supply, driving up prices.

Another reason the prices are up so much is that China is buying up as much as it can, which is understandable since it’s leading the charge in EV manufacturing.

In 2020, it spent twice the amount on Cobalt imports than the next four countries combined.

Things become even muddier if you start looking into China’s influence (both economic and political) in the Democratic Republic of Congo, where the bulk of the entire world’s cobalt supply comes from, which might give it more ready access to cobalt.

What Companies Mine The Most Cobalt?

Switzerland-based Glencore and Chinese China Molybdenum mine more cobalt than any other company globally. Among the top five, there is also the US-based Vale and the Congo’s own Gecamines.

Currently, Glencore is taking the lead, but there are strong indications that China Molybdenum might surpass it in the next few years in cobalt production.

Who Produces Cobalt In Canada?

Sherritt International is a major cobalt producer in Canada. In 2020, it produced almost 40% of the entire country’s cobalt production. Canada Silver Cobalt is another major cobalt producer in Canada. US-based Vale also produces cobalt in Canada.

How To Buy Cobalt Stocks In Canada

The cheapest way to buy stocks is from discount brokers. My top choices in Canada are:

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To learn more, check out my full breakdown of the best trading platforms in Canada here.

Conclusion

Cobalt is just one secondary commodity/market tied to the EV boom. But it has strong demand even beyond batteries for EVs, and thanks to the cost and supply limitations, the future of this metal looks quite promising.

It might even be a decent investment from an ESG perspective (at least environmental) as EVs are an important part of a green future, and cobalt is an important part of EVs.

So the best cobalt stocks in Canada are an asset pool definitely worth considering. You can always look into the EV stocks in Canada as well to make your portfolio even greener.

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Author Bio - Christopher Liew is a CFA Charterholder with 11 years of finance experience and the creator of Wealthawesome.com. Read about how he quit his 6-figure salary career to travel the world here.

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