Cobalt Holdings plc, a company created primarily to purchase and hold physical cobalt, announced on Monday an intention to float on the London Stock Exchange, with commodity miner and trader Glencore acting as one of its cornerstone investors.
Cobalt Holdings plc intends to raise approximately $230 million through its Global Offer and the possible admission of its ordinary shares to trading on the Main Market for listed securities of the London Stock Exchange. The admission is expected to occur in June 2025.
Glencore International AG and certain entities and affiliates managed by Anchorage Structured Commodities Advisor have agreed to participate as cornerstone investors, agreeing to invest a combined amount representing about 20.5% of the Cobalt Holdings shares to be offered pursuant to the Global Offer.
With the IPO, the companies express confidence in the future of the global cobalt demand for batteries and the energy transition despite the current market oversupply.
“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,” said Jake Greenberg, CEO of Cobalt Holdings.
At the same time, Cobalt Holdings has entered into an agreement with Glencore to buy cobalt from one of the world’s top cobalt miners and traders. Cobalt Holdings will initially buy a quantity of cobalt worth $200 million and will have the right to make five annual subsequent purchases of $160 million each, providing the company with access to up to $1 billion of cobalt.
The Initial Purchase of 6,000 tonnes of cobalt from Glencore will be at a discount to today’s spot price, Cobalt Holdings said.
Glencore extracts and processes cobalt in the Democratic Republic of the Congo, Australia, Canada, and Norway, mainly as a by-product of copper mining, but also as a by-product of nickel mining. Glencore’s own sourced cobalt production stood at 9,500 tonnes in the first quarter of 2025, up by 2,900 tonnes, or 44% higher, than Q1 2024, mainly reflecting higher cobalt grades and volumes at Mutanda in the DRC.
By Tsvetana Paraskova for Oilprice.com
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