In this article we discuss the 5 best cobalt stocks to buy for 2021. If you want to read our detailed analysis of the mining industry, go directly to 10 Best Cobalt Stocks To Buy For 2021.
5. Horizonte Minerals Plc (LSE: HZM.L)
Horizonte Minerals Plc (LSE: HZM.L) is a United Kingdom-based nickel development firm that owns mining rights in northern Brazil. The company has interests in gold, silver and other base metal projects as well, most of them in Brazil and Peru. The company has been primarily in the business of mining nickel but has now started to shift its focus to the production of cobalt as well. The firm said it has raised more than $18 million for new ventures in this regard.
The company has a market cap of more than $127 million. In a pre-revenue report, the company noted that the effects of the coronavirus pandemic had continued into 2021 but it was hopeful that 2021 would be a more productive year for the firm. It also announced that it had achieved a $300 million senior debt facility to fund a mining project in Brazil. Horizonte Minerals is fifth in our list of top 10 best cobalt stocks to buy for 2021.
4. Australian Mines Limited (ASX: AUZ.AX)
Australian Mines Limited (ASX: AUZ.AX) is a Brisbane-based mining firm that prioritizes the mining and development of metals for use in new technologies. The firm has interests in cobalt-scandium-nickel projects in Australia. One of the biggest projects for the company, Its flagship Sconi, is considered the most advanced production-wise in the country. The project has been estimated to deliver an annual average production of 3,010 tonnes of cobalt sulphate, 24,420 tonnes of nickel sulphate and 77 tonnes of scandium oxide for at least the first 20 years.
The company has a market cap of more than $63 million and has an annual revenue of more than $17 million. Australian Mines had previously said that the reserves of cobalt and nickel at its flagship project site were enough to produce the equivalent of at least 3 million to 6 million electric vehicle battery packs. As the demand for EVs increases, the company would stand to gain from this boom.
3. Wheaton Precious Metal Corp. (NYSE: WPM)
Wheaton Precious Metal Corp. (NYSE: WPM) is a Vancouver-based precious metals streaming company. The company has streaming agreements with tens of other companies for different mines around the world. Some of these mines are operational while others are still in the developmental stage. Wheaton currently has proven and probable cobalt reserves of tens of millions of pounds, but also sizable reserves of gold, silver and palladium.
The company has a market cap of more than $18 billion and posted more than $1 billion in revenue in December 2020. Last month, the company announced that it had reached an agreement for a gold streaming project in Chile. The construction for the project is expected to start later this year and gold production from the site would begin in 2024. The company posted record revenues and operating cash flows in 2020. It is placed third on our list of top 10 best cobalt stocks to buy for 2021.
As of the end of the fourth quarter, there were 34 hedge funds in Insider Monkey’s database that held stakes in Wheaton Precious Metal Corp., compared to 29 funds in the third quarter. First Eagle Investment Management, with 16.2 million shares of WPM, is the biggest stakeholder in the company.
In one of their investor letters, First Eagle Investment Management highlighted a few stocks and Wheaton Precious Metals Corp. (NYSE:WPM) is one of them. Here is what First Eagle said:
“The strength in the price of gold was generally supportive of gold-related equities whose performance historically has been leveraged to the gold price. One such example is Wheaton Precious Metals, a Canadian streaming company that maintains, in our view, a high-quality, low-cost portfolio of precious metal purchase agreements that is well diversified across mining partners, geographies and metal types. Despite pandemic-related suspensions of six of its mining assets, Wheaton posted a 50% year-over-year increase in operating cash flow for the first quarter, which allowed the company to reduce its net debt while raising its quarterly dividend payment.”
2. Clean TeQ Holdings Limited (ASX: CLQ.AX)
Clean TeQ Holdings Limited (ASX: CLQ.AX) is an Australia-based company that offers metal recovery and industrial water treatment services. The firm provides cutting-edge technology for the extraction and purification of base and precious metals, as well as radioactive elements, such as uranium. It also has interest in the mining of nickel that can be used to produce cobalt. The company ranks second on our list of top 10 best cobalt stocks to buy in 2021.
The company has a market cap of close to $200 million and has more than $22 million in earnings every year. Earlier this year, the chief of the company bought hundreds of thousands worth of shares in the firm, signaling that he thought the stock was undervalued. The stocks are one of the best options in the cobalt market. Since the metal is important for new technology, there is plenty of potential for growth.
1. Carpenter Technology Corporation (NYSE: CRS)
Carpenter Technology Corporation (NYSE: CRS) is a Pennsylvania-based company that develops, manufactures and distributes metal alloys. These alloys are then used in many products around the world like electronics, aircraft and electric vehicles. The firm was founded in 1889 and has now become a market leader in the production of alloys like titanium, nickel, and cobalt, as well as specifically engineered ones for additive manufacturing (AM) processes and soft magnetics applications.
The company has a market cap of more than $2 billion and posted a revenue of more than $2 billion in June 2020. Earlier this year, the shares of the company rose more than 20% after the company implemented cost reduction initiatives and some portfolio reassignments. The firm also won some key defense and aerospace contracts to bolster investor confidence. The firm is first on our list of top 10 best cobalt stocks for 2021.
With a $14.2 million stake in Carpenter Technology Corporation, Fisher Asset Management owns 486,003 shares of the company as of the end of the fourth quarter of 2020. Our database shows that 14 hedge funds held stakes in CRS as of the end of the fourth quarter, versus 16 funds in the third quarter.
You can also take a peek at 10 Best Stocks To Buy Now According To Quant Billionaires and 15 Most Valuable Technology Companies in the World.
