Confirmation of Intention to Float – 07:00:09 19 May 2025 – News article | London Stock Exchange
LONDON: Cobalt Holdings plc, a newly formed company designed to purchase and hold physical cobalt, announced Monday its intention to raise approximately $230 million through a Global Offer and seek admission to the London Stock Exchange.
If approved, its shares are expected to list in June 2025, providing public equity investors with pure-play exposure to cobalt prices.
Cobalt Holdings will be the only publicly traded company offering direct investment in cobalt without the operational risks tied to mining or refining. The move comes as cobalt prices remain below long-term averages amid a market surplus, despite growing demand from electric vehicle (EV) batteries, portable electronics and energy storage systems.
Strategic Timing Amid Market Shifts
The company plans an initial purchase of 6,000 metric tons of cobalt from Glencore International AG at a discount to current spot prices, worth $200 million. This represents roughly 33% of the projected 2025 surplus, according to Benchmark Mineral Intelligence.
“Cobalt is critical to the energy transition, yet prices are depressed due to oversupply,” said CEO Jake Greenberg, a founding team member of Yellow Cake plc, a similar investment vehicle for uranium. “We see a long-term deficit emerging as EV demand accelerates, making this an ideal time to build a strategic stockpile.”
Global cobalt demand more than doubled from 2015 to 2024, reaching 239,000 tons annually. By 2031, Benchmark Minerals forecasts demand hitting 369,480 tons, driven largely by battery production. Meanwhile, export restrictions in the Democratic Republic of Congo (DRC), a major cobalt supplier, could tighten supply.
Key Partnerships and Supply Deals
Cobalt Holdings has secured cornerstone investments from Glencore and Anchorage Structured Commodities Advisor, L.P., which will collectively hold about 20.5% of shares post-listing.
– Glencore Supply Contract: A six-year agreement guarantees up to $1 billion in premium-grade cobalt purchases, starting with the initial 6,000-ton acquisition.
– Anchorage Agreement: Anchorage will supply up to 1,500 tons in 2031 and provide a $23 million debt facility to support share buybacks if the stock trades at a discount to net asset value (NAV).
Low-Risk, High-Efficiency Model
Unlike mining firms, Cobalt Holdings avoids exploration and operational risks by solely holding physical metal. Its cobalt will be stored in secured warehouses in Belgium, the Netherlands, Singapore and South Korea, insured against losses.
The company maintains a lean structure, outsourcing logistics and advisory services to Cobalt Metal Management (CMM), led by industry veterans with decades of commodities experience.
The board will include independent non-executive directors with expertise in finance, commodities and public markets. Alongside Greenberg, CFO David Haughie brings experience from Mercuria Energy Group’s principal investments team.
Citigroup Global Markets Limited will act as sole sponsor and global coordinator for the Global Offer, with Canaccord Genuity as joint bookrunner. The offering targets institutional investors under Regulation S and Rule 144A, alongside a U.K. retail investor component via RetailBook.
Cobalt Holdings aims to capitalize on long-term price appreciation rather than short-term speculation. Future plans may include additional cobalt purchases, logistical optimizations and financial hedges to enhance shareholder returns.
“This is a unique opportunity to invest in cobalt’s structural deficit story,” Greenberg said. “With Glencore and Anchorage as partners, we’re positioned to deliver value as the market tightens.”