## 1) First Quantum Minerals Ltd. (FQML)
Regarded as one of the top Canadian cobalt stocks in 2024, First Quantum Minerals Ltd. (FQML) has earned favor in the investment community, with its continuous growth and innovative strides.
First Quantum Minerals Ltd. (FQML) is a Vancouver-based Canadian multinational mining company. Established in 1996, it has grown exponentially to become the country’s most significant cobalt producers and exporters. FQML operations span several nations, including high-cobalt countries like Zambia and the DRC.
One of the reasons FQML tops the list is because they invest heavily in exploration and production facilities, ensuring they remain at the forefront of the cobalt industry. Furthermore, FQML’s commitment to sustainable and responsible mining practices, along with sound environmental policies, fortifies their leading status.
FQML reported a significant increase in revenue since the resurgence of the electric vehicle (EV) sector, which primarily uses cobalt in their batteries. This trend is expected to continue, positioning FQML as a strategic investment in the clean energy sector.
## 2) Sherritt International Corporation (SIC)
Coming in strong as the second on the list is Sherritt International Corporation (SIC). The company carries a rich history, having been in the mining industry for over nine decades. SIC is one of the largest producers of nickel and cobalt from lateritic sources in the western hemisphere.
SIC’s operations in Canada and Cuba along with its flexible, modern technology for metals processing, set the company apart. The Moa Joint Venture in Cuba, a partnership with the Cuban Government, is a vast mine and processing facility that produces consistent high-quality cobalt.
Sherritt International Corporation has been actively involved in developing improved battery materials for the budding EV market. This drive places the company on a strong trajectory, attracting investors focused on renewable energy and clean technology. Additionally, SIC’s governance model emphasizes Environmental, Social, and Governance (ESG) criteria, furthering its appeal in today’s ESG-investment-friendly market.
## 3) Wheaton Precious Metals (WPM)
Rounding off the top three is Wheaton Precious Metals (WPM), a unique player in the cobalt space. Despite their initial focus on silver and gold, WPM has made significant strides in cobalt.
What sets WPM apart is their business model. They are a streaming company, meaning they enter into agreements to purchase a portion of the metals produced by other mining companies. This lets WPM avoid many of the operational and financial risks associated with mining.
Their deal with Vale S.A., a Brazilian mining company, for cobalt production from Voisey’s Bay mine in Newfoundland and Labrador province sparked interest from savvy investors. The deal secures a significant amount of cobalt production in the future, positioning them as key players in the cobalt market.
While the majority of its stream is still in the gold and silver sectors, the agreement with Vale showcases a solid entry into the cobalt space. Given the surge in demand for cobalt, this move might prove profitable for WPM in the coming years.
In conclusion, the First Quantum Minerals Ltd., Sherritt International Corporation, and Wheaton Precious Metals remain the top choices for investment in Canada’s cobalt market. Each brings a unique approach to their business, marking a progressive stride in the country’s cobalt industry sector. Their commitment to sustainable practices and the drive to support the EV market will continue to solidify their positions.
