Skip to main content
The Globe and Mail
Support Quality Journalism.
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); } //

Robert Friedland, founder and chief executive officer of Ivanhoe Mines Ltd., speaks at the Melbourne Mining Club in Melbourne, Australia, on Thursday, Dec. 1, 2011. A court has ordered the company to stop exhuming and relocating dozens of historic graves at the site of its planned platinum mine in South Africa.

Carla Gottgens/Bloomberg

An Australian cobalt company backed by mining financier Robert Friedland is considering a listing on the Toronto Stock Exchange, sources familiar with the matter said, as demand for the battery-making metal soars amid supply shortages.

The company, called Clean TeQ Holdings Ltd., is already public in Australia and has seen its stock hit a record high thanks in part to a spike in cobalt prices this year.

Clean TeQ is talking to investment banks Macquarie Capital Markets Canada Ltd. and BMO Nesbitt Burns Inc. about a number of options, including raising additional funds through a Canadian offering, or a straight listing on the TSX, without raising new money right away, sources said.

Story continues below advertisement

The company, which is co-chaired by Mr. Friedland, has yet to decide on which option it may pursue, or whether a transaction proceeds at all, according to the sources, who spoke to The Globe and Mail on the condition of anonymity because the information is not yet public.

A spokesperson with Clean TeQ told The Globe that it has a policy of not responding to market speculation. Macquarie declined to comment. BMO did not immediately respond to a request for comment.

Mr. Friedland is Clean Teq's biggest shareholder, with a 16.5-per-cent stake according to Thomson Reuters. With a net worth, according to Forbes, of $1.3-billion (U.S.), he's known for founding Ivanhoe Mines and developing big deposits.

He developed the Voisey's Bay nickel deposit in Labrador, which was sold to Inco for $4.3-billion (Canadian), and later developed a vast copper resource in Oyu Tolgoi, Mongolia. Mr. Friedland, who is now based in Singapore, declined comment for this story.

Founded in 1990, Clean TeQ went public in 2007 and has a market valuation of roughly $740-million (Australian). The company owns the Syerston nickel, cobalt and scandium project in New South Wales, Australia, which is not yet in production. Clean TeQ's shares rallied this week after it raised its expected cobalt production target by 30 per cent.

The stock has also moved higher this year in line with the price of cobalt.

The metal is trading around $59,000 (U.S.) a metric tonne on the London Metal Exchange, a year-to-date increase of about 80 per cent. Cobalt has been one of the star performers in the metals markets this year because of a combination of strong demand and tightening supply. The metal is a byproduct of copper and nickel mining and a key ingredient in batteries for both electric cars and smartphones.

Story continues below advertisement

The Democratic Republic of the Congo has the world's richest reserves of cobalt, but owing to concerns over the use of child labour, buyers have looked to other sources of supply.

Clean Teq would not be the first cobalt company to make it to public markets in Canada this year. In June, Cobalt 27 Capital Corp., a pure play on physical cobalt, raised $200-million (Canadian) in an offering on the TSX Venture Exchange.

After spending the best part of five years in the wilderness, mining has staged a comeback on the Canadian public-offering market.

Over the past month, three new mining IPOs have been announced, including Luxembourg-based zinc miner Nexa Resources SA, which is planning to raise $750-million (U.S.) in a dual listing in Toronto and New York. Nexa would be the biggest IPO in Canadian mining in a decade.

Higher metals prices, years of cost-cutting in the industry and renewed interest from investors are some of the reasons there is more activity in the market.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow the authors of this article:

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
Report an error Editorial code of conduct
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies