


What a rollercoaster last week was for ASX shares. Monday and Tuesday saw the All Ordinaries Index (ASX: XAO) fall, while Wednesday and Thursday saw it in the green. On Friday, it was in the red again. But investors in the Cobalt Blue Holdings Ltd (ASX: COB) share price had nothing to worry about.
Cobalt Blue shares rocketed an impressive 30.9% over the course of last week, rising from 55 cents per share to 72 cents. That puts Cobalt Blue up around 44% in 2022 so far.
So what has happened to give investors such a surge of optimism over the last week?
Cobalt Blue share price charges up
Well, it has to be said that it’s not entirely clear. Cobalt Blue’s Broken Hill Cobalt Project was granted ‘major project status’ recently.
This development means Cobalt Blue will receive government support for the project, which aims to produce “high quality, battery-ready cobalt sulphate”. This sparked a surge of optimism for the Cobalt Blue share price at the time as it surged by more than 20% at one point. But that was made public on 2 March, more than a week ago.
But we could also be seeing a general rise in investor sentiment towards Cobalt Blue and other ASX cobalt shares. As my Fool colleague Mitchell reported on Friday, the price of raw cobalt itself has been surging of late.
The metal is a key ingredient inside many lithium-ion rechargeable batteries, itself a huge growth industry. As such, investors and suppliers alike have been keen to secure a piece of the market.
Cobalt Blue is one of the biggest cobalt plays on the ASX. But it is not the only cobalt company to have enjoyed some recent gains. Jervois Global Ltd (ASX: JRV) is another ASX cobalt share. Although Jervois didn’t have quite the week that Cobalt Blue had, its shares are still up an impressive 44% or so over the past six months.
At the current Cobalt Blue share price, this ASX resources share has a market capitalisation of $213.6 million.
The post Why did the Cobalt Blue (ASX:COB) share price rocket 30% in a week? appeared first on The Motley Fool Australia.
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More reading
- Why is everyone talking about ASX cobalt shares this week?
- Why has this ASX share you’ve never heard of soared 30% already this month?
- What a Boss! Why the Boss Energy (ASX:BOE) share price is soaring 13% today
- Why did the Race Oncology (ASX:RAC) share price drop 10% today?
- This ASX mining share rocketed 21% today. Here’s why
Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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