HK Stock Market Move | LYGEND RESOURCE(02245) rose more than 8%; details of cobalt export quotas for Congolese companies finalized

LYGEND RESOURCE (02245) surged more than 8%, up 8.47% to HK$26.9 as of the time of writing, with a turnover of HK$195.782 million. In terms of news, according to the latest information, the Democratic Republic of Congo announced that the cobalt export ban will be lifted on October 16th and annual export quotas will be implemented, with a remaining export limit of 18,125 tons for the year 2025. The country is the world's largest producer of cobalt, accounting for 75.86% of global production in 2024. The cobalt export ban has been in effect since the end of February this year, lasting nearly 8 months. Some analysts predict that the export quota policy in the Democratic Republic of Congo will lead to a significant decrease in global cobalt supply from 2025 to 2027, with supply shortages of 122,000 tons, 88,000 tons, and 97,000 tons respectively, and cobalt prices are expected to rise strongly. In addition, Indonesia's latest RKAB regulations for 2026 have been officially released, which may support nickel prices due to increased demand for nickel ore. Minsheng Securities previously pointed out that nickel prices are at a cyclical bottom with clear cost support. The world's largest cobalt raw material supply country has banned cobalt exports for 7 months, and there is a possibility of extending the ban after the deadline on September 22nd. The shortage of domestic raw materials is worsening. In the long term, the Democratic Republic of Congo government has a strong stance on supporting prices and is likely to implement a quota system in the future, leading to a probable contraction in supply and an upward movement in cobalt prices. The company's wet nickel production capacity is located in Indonesia, unaffected by the export restrictions imposed by the Democratic Republic of Congo, and will fully benefit from the rising cobalt prices. With the release of additional production capacity and cost advantages, the company's growth prospects are significant.