http://www.proactiveinvestors.com.au Proactiveinvestors RSS feed en Thu, 21 Jun 2018 14:38:52 +1000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Neometals completes acquisition of Mt Edwards lithium project ]]> http://www.proactiveinvestors.com.au/companies/news/199268/neometals-completes-acquisition-of-mt-edwards-lithium-project-199268.html Neometals Ltd (ASX:NMT) has now completed the acquisition of the tenement and nickel rights package from Apollo Phoenix Resources Pty Ltd.

The package covers 240 square kilometres and includes the Mt Edwards Lithium Project, which is located 40 kilometres south of the operating Mount Marion Lithium Project of which Neometals owns a 13.8% equity interest.

It represents a strategic addition to Neometals’ spodumene sourcing pipeline to support its planned lithium hydroxide business.

READ: Neometals enters option for lithium hydroxide refinery site

Neometals is evaluating a local lithium hydroxide facility in the Kalgoorlie region to process its off-take rights from Mount Marion.

The acquisition of the Mt Edwards Lithium Project adds a prospective brownfield holding to the pipeline of potential additional sources of spodumene to support Neometals’ strategy to build an integrated lithium business.

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Thu, 21 Jun 2018 09:34:00 +1000 http://www.proactiveinvestors.com.au/companies/news/199268/neometals-completes-acquisition-of-mt-edwards-lithium-project-199268.html
<![CDATA[News - Neometals supports Hannans’ lithium gold and nickel exploration strategy ]]> http://www.proactiveinvestors.com.au/companies/news/198822/neometals-supports-hannans-lithium-gold-and-nickel-exploration-strategy-198822.html Neometals Ltd (ASX:NMT) is the major shareholder of Hannans Ltd (ASX:HNR) with a 36% holding and supports its development of lithium,  nickel and gold assets in Western Australia.

Of focus is its Forrestania / Mt Holland project, in an area known globally as hosting a world-class nickel sulphide camp, gold mine and one of the largest hard rock lithium deposits globally.

Mt Holland East is the highest priority target

Hannans exploration goal at Mt Holland is to discover a lithium deposit comparable to the globally significant Earl Grey and or a 1+ million ounce gold deposit comparable to Bounty.

Mt Holland East has been identified as the area most likely to host a major lithium and or gold deposit.

Hannans is working towards commencing the first phase of shallow auger drilling to test for lithium and gold at Mt Holland East.

Mt Holland West targeting lithium

The Mt Holland West Project was acquired in September 2016 and has had three phases of geochemistry drilling completed on it to date.

The project covers the western margin of the potential source granite to the pegmatites hosting the Earl Grey lithium mineralisation.

The fourth phase of drilling is planned in June-July.

Forrestania Nickel target

The area is also a world-class nickel sulphide province thanks to the discovery by Western Areas Ltd (ASX:WSA), Australia’s second-largest nickel sulphide miner.

Hannans has postponed its joint venture process and engaged Newexco Services to complete a review of it’s the Forrestania Nickel prospect.

WATCH: Neometals Ltd looking to move downstream towards lithium chemical production ]]>
Thu, 14 Jun 2018 08:48:00 +1000 http://www.proactiveinvestors.com.au/companies/news/198822/neometals-supports-hannans-lithium-gold-and-nickel-exploration-strategy-198822.html
<![CDATA[Media files - Neometals Ltd looking to move downstream towards lithium chemical production ]]> http://www.proactiveinvestors.com.au/companies/stocktube/9493/neometals-ltd-looking-to-move-downstream-towards-lithium-chemical-production-9493.html Thu, 07 Jun 2018 10:01:00 +1000 http://www.proactiveinvestors.com.au/companies/stocktube/9493/neometals-ltd-looking-to-move-downstream-towards-lithium-chemical-production-9493.html <![CDATA[News - Neometals enters option for lithium hydroxide refinery site ]]> http://www.proactiveinvestors.com.au/companies/news/198315/neometals-enters-option-for-lithium-hydroxide-refinery-site-198315.html Neometals Ltd (ASX:NMT) has entered into an option agreement to sub-lease a 40-hectare site in Kalgoorlie for its proposed lithium hydroxide refinery.

With a lithium hydroxide plant, Neometals aims to take lithium concentrate feed from its nearby 13.8% owned Mt Marion lithium operations and convert it to the higher value lithium hydroxide product.

The site is in a new industrial estate at West Kalgoorlie on the Great Eastern Highway, 70 kilometres by road from the Mt Marion lithium operations.

WATCH: Neometals Ltd looking to move downstream towards lithium chemical production

Neometals’ CEO Chris Reed said: “Neometals has been investigating sites for some time and this Kalgoorlie location makes a lot of sense.

“The strategy to move Neometals downstream towards lithium chemical production is part of a broader evolution of our lithium business arm.

“The aim is to develop a closed loop lithium ecosystem with access to the lithium raw material source, value adding for use in the battery supply chain and ultimately, recycling of spent batteries.

“We are already part of the global lithium supply chain which gives us clear industry insights and confidence in the future demand outlook for lithium hydroxide from hard rock.”

Two-year option to allow for studies

The agreement provides Neometals with a two-year option over the site with a provision for an additional two-year extension.

During this time Neometals will undertake due diligence and front end engineering design (FEED) studies as part of a broader project feasibility study for the refinery which is underway.

Reed added: “Kalgoorlie is not only very close to our Mt Marion operation and all the services that a first-class mining town brings, but it also provides a cost advantage owing to the removal of transport, shipping and taxes.

“Reducing transport reduces the environmental footprint which supports margins, but it’s also a critical consideration for the end users who must account for the full life cycle of the materials they consume.

“Add to that Kalgoorlie’s land availability, leasing rates, access to power/water/gas and a willing local workforce - and the location becomes very compelling.”

MoU signed related to proposed refinery

Neometals and the City of Kalgoorlie-Boulder have executed a memorandum of understanding (MoU) providing for assistance in procurement of certain infrastructure and utilities for the proposed lithium refinery.

Next steps in advancing lithium business strategy

The next key steps for Neometals to advance its lithium business arm objectives include:

• Continuing due diligence, FEED and feasibility studies for the refinery;
• Advance off-take dialogues and the formal partner selection process;
• Working with the City of Kalgoorlie Boulder to progress fundamental service agreement terms including provision of access roads, reclaimed water pipeline etc for the refinery; and
• Finalising the KLR funding strategy.

Neometals expects to make an investment decision in relation to the refinery in the June quarter of 2019.

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Wed, 06 Jun 2018 10:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/198315/neometals-enters-option-for-lithium-hydroxide-refinery-site-198315.html
<![CDATA[News - Neometals declares dividend for shareholders ]]> http://www.proactiveinvestors.com.au/companies/news/197676/neometals-declares-dividend-for-shareholders-197676.html Neometals Ltd (ASX:NMT) has declared a 1 cent per share unfranked dividend for its shareholders.

The company is able to continue paying a dividend due to its 13.8% ownership in the Mt Marion lithium operations near Kalgoorlie, Western Australia.

Mt Marion has been in production since April 2017 and sales of lithium concentrate are generating consistent cash flow for the company.

Consistent future cash flows expected

Neometals’ managing director Chris Reed said: “Neometals’ strategy of holding a globally significant mineral portfolio, de‐risking through project partnering and increasing margins via expanding output and quality of production is working well for us.

“Mt Marion is one of the world’s largest lithium producing assets and it gives us invaluable exposure to the entire lithium supply chain with a concentrate source that has been validated by converters and battery end users.

“We look forward to applying the same principles as we continue the development our lithium hydroxide, battery recycling and titanium initiatives.”

READ: Neometals viewed as substantially undervalued as it moves to near-term profitability

Earlier this month, Neometals collected a 53-tonne bulk sample from its Barramble Titanium Vanadium Project in Western Australia to ship to China

The sample was from the high-grade part of the deposit which has potential to be the main feed source for a potential direct shipping ore (DSO) operation.

Prospective buyers from China will next perform metallurgical test work on the bulk sample when it arrives in China.

Additional test work will also commence at an Australian laboratory to confirm Chinese results.

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Fri, 25 May 2018 09:40:00 +1000 http://www.proactiveinvestors.com.au/companies/news/197676/neometals-declares-dividend-for-shareholders-197676.html
<![CDATA[News - Neometals viewed as substantially undervalued as it moves to near-term profitability ]]> http://www.proactiveinvestors.com.au/companies/news/196500/neometals-viewed-as-substantially-undervalued-as-it-moves-to-near-term-profitability-196500.html Neometals Ltd (ASX:NMT) has dispatched a 53-tonne bulk sample from its Barrambie Titanium Vanadium deposit in Western Australia as it prepares for a direct shipping ore (DSO) operation. 

The sample targeted typical high-grade titanium and vanadium mineralisation from the eastern band of the deposit, which is potentially the main feed source for the planned DSO operation.

READ: Neometals sends titanium vanadium bulk sample to China for potential offtake partners

This is an important development in accessing Chinese markets, as it should confirm the optimal pathway for the extraction of titanium, vanadium and iron products.

The results of these tests will form a basis to negotiate offtake pricing.

Chief executive officer Chris Reed said: “As we progress the dual track evaluation of DSO and integrated titanium/vanadium chemical production, it is critical we give comfort to potential Chinese customers of the quality and value of the Barrambie DSO product.”

A truly diversified asset rich company

However, there is much more to Neometals than the Barrambie project and looking across the company’s range of assets, its market capitalisation of $170 million appears conservative.

It was only in mid-April that Neometals released a 48,200-tonne nickel resource within the Mt Edwards lithium project in Western Australia.

READ: Neometals reveals nickel JORC resource at Mt Edwards

The March acquisition of this brownfields lithium exploration project appeared to slip under the radar.

While it is arguably a sleeper in Neometals’ impressive portfolio of assets, expect ongoing newsflow given the highly prospective location just 40 kilometres south of Mt Marion.

Arlington sees share price upside of 360%

Indeed, Mark Fernley from the UK-based Arlington Group views the company as substantially undervalued.

His sum of the parts valuation of $1.43 implies upside of about 360% to the company’s recent trading range.

The broker recently reflected on the meshing together of Neometals’ Mt Marion lithium operation and its potential to assist in developing Barrambie.

Mt Marion complementary to Barrambie

Fernley said: “NMT’s 13.8% share in the Mt Marion lithium mine should continue to yield strong cash flow for many years.

“This should potentially allow NMT to develop the Barrambie titanomagnetite DSO project and continue to develop the associated titanium dioxide (TiO2) project.

“The lithium hydroxide (LiOH) plant is a positive addition to this.”

Fundamentals speak for themselves

Certainly, the projected financials support Fernley’s take on the company.

He is forecasting a maiden profit of $52 million as early as fiscal 2019.

Bear in mind there are plenty of other players in the sector that are a long way from generating first revenues, let alone turning a profit.

The forecast profit equates to earnings per share of 10 cents, implying a PE multiple of three relative to the company’s current trading range.

Production ramp up at Mt Marion continues

The other major shareholders involved in the Mt Marion project are Mineral Resources Ltd (ASX:MIN) and Ganfeng Lithium Co Ltd (SHE:002460), with each having a stake of 43.1%.

There were shipments of lithium concentrates to Ganfeng during the quarter with nearly 84,000 tonnes dispatched during the quarter.

March was a particularly strong month as nearly 54,000 tonnes were shipped.

Construction of the upgrade to the concentrator circuits to facilitate production of all 6% lithium concentrate is expected to be completed in the December quarter.

Extracting more value from Mt Marion

Neometals continues to assess the development of a lithium processing facility close to the Mt Marion lithium operation.

The company has retained its binding offtake option right for a minimum of 12.37% of production from Mt Marion from February 2020.

This would provide a secure supply of feedstock to support the prospective development of its own downstream processing plant.

Equipment test work completed

Neometals has completed the vendor equipment test work in North America, which was in line with the group’s upbeat expectations.

The tests confirmed that proposed process flow sheet and high-quality product analysis (99.99% lithium hydroxide monohydrate).

This data will assist in the front-end engineering design (FEED) study which was launched at the start of May.

Plant to be located in Kalgoorlie

The lithium hydroxide plant is proposed to be built in Kalgoorlie.

READ: Neometals to begin FEED study for lithium hydroxide project

The FEED study should be completed by the end of 2018, and the project feasibility study will integrate these results in preparation for an investment decision in the first quarter of 2019.

Commenting on this development, Reed said: “Neometals looks forward to advancing its strategy to become an integrated lithium producer and maximise the value of its spodumene offtake rights from Mt Marion via the downstream conversion to lithium hydroxide in the local plant.”

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Tue, 08 May 2018 10:48:00 +1000 http://www.proactiveinvestors.com.au/companies/news/196500/neometals-viewed-as-substantially-undervalued-as-it-moves-to-near-term-profitability-196500.html
<![CDATA[News - Neometals sends titanium vanadium bulk sample to China for potential off-take partners ]]> http://www.proactiveinvestors.com.au/companies/news/196496/neometals-sends-titanium-vanadium-bulk-sample-to-china-for-potential-off-take-partners-196496.html Neometals Ltd (ASX:NMT) has collected and will ship to China a 53-tonne bulk sample from its Barramble Titanium Vanadium Project in Western Australia.

The sample was from the high-grade part of the deposit which has potential to be the main feed source for a potential direct shipping ore (DSO) operation.

Prospective buyers from China will next perform metallurgical test work on the bulk sample when it arrives in China.

Additional test work will also commence at an Australian laboratory to confirm Chinese results.

READ: Neometals expands titanium vanadium resource at Barrambie

Neometals’ CEO Chris Reed said: “As we progress the dual-track evaluation of DSO and integrated titanium/vanadium chemical production it is critical we give comfort to potential Chinese customers of the quality and value of the Barrambie DSO product.

“Undertaking test work programs at the leading research institutes in China is a key step in the marketing and pricing of a DSO product as a feedstock for the traditional smelters or titanium chemical producers.”

Barrambie hosts 280.1 million tonnes grading 9.18% titanium dioxide and 0.44% vanadium pentoxide to 80 metres vertical depth.

This represents a contained titanium resource exceeding 25 million tonnes and contained vanadium resource exceeding 1.2 million tonnes.

Metallurgy to confirm recoveries and product qualities for off-take

A number of leading mining and metallurgy research institutes in China tendered for test work to confirm the optimal pathway for the extraction of titanium, vanadium and iron products.

This work is required by prospective Chinese buyers to confirm recoveries and product qualities and form a basis to negotiate off-take pricing.

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Tue, 08 May 2018 09:10:00 +1000 http://www.proactiveinvestors.com.au/companies/news/196496/neometals-sends-titanium-vanadium-bulk-sample-to-china-for-potential-off-take-partners-196496.html
<![CDATA[News - Neometals to begin FEED study for lithium hydroxide project ]]> http://www.proactiveinvestors.com.au/companies/news/196193/neometals-to-begin-feed-study-for-lithium-hydroxide-project-196193.html Neometals Ltd (ASX:NMT) has appointed M+W Group to perform the front-end engineering and design (FEED) study for its proposed lithium hydroxide plant in Kalgoorlie, Western Australia.

The proposed plant is part of the company’s vertical integration strategy that will allow it to extract more value from the lithium supply and processing chain.

With a lithium hydroxide plant, Neometals aims to take lithium concentrate feed from its 13.8% owned Mt Marion lithium operations and convert it to the higher value lithium hydroxide product. 

M+W to deliver report in December quarter

Engineering firm M+W Group plan to deliver the report from the FEED Study in the December quarter of 2018.

The project feasibility study will integrate the FEED study results in preparation for a request for an investment decision in the March quarter of 2019.

READ: Neometals receives validation for its lithium hydroxide process

Neometals’ CEO Chris Reed said: “We are extremely pleased with the previous studies conducted by M+W for Neometals and anticipate a similar high standard of report for the FEED study.

“Neometals looks forward to advancing its strategy to become an integrated lithium producer and maximise the value of its spodumene off-take rights from Mt Marion via the downstream conversion to lithium hydroxide in a local plant.”

Converting lithium hydroxide locally has transport, shipping and duty savings.

About seven tonnes of spodumene concentrate, such as that produced from Mt Marion, is required to produce one tonne of higher value lithium hydroxide.

Currently, that is being done in a conversion plant in China.

The lithium spodumene concentrate input represents over half the operating costs of production.

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Wed, 02 May 2018 08:43:00 +1000 http://www.proactiveinvestors.com.au/companies/news/196193/neometals-to-begin-feed-study-for-lithium-hydroxide-project-196193.html
<![CDATA[News - Neometals completes Mt Edwards lithium rights component of acquisition ]]> http://www.proactiveinvestors.com.au/companies/news/196001/neometals-completes-mt-edwards-lithium-rights-component-of-acquisition-196001.html Neometals Ltd (ASX:NMT) has completed the previously detailed acquisition of Mt Edwards Lithium Pty Ltd.

Mt Edwards Lithium Pty Ltd owns 75% of the lithium rights in the Mt Edwards Lithium Project comprising 20 tenements and 100% of the lithium rights on mining lease M15/87.

The Mt Edwards Lithium Project is located 40 kilometres south of the operating Mount Marion Lithium Project of which Neometals owns a 13.8% equity interest.

READ: Neometals to acquire Mt Edwards Lithium Project

The whole transaction involves the acquisition of a combination of tenements and mineral rights covering 240 square kilometres.

It represents a strategic addition to Neometals’ spodumene sourcing pipeline to support its planned lithium hydroxide business.

Neometals is evaluating a local lithium hydroxide facility in the Kalgoorlie region to process its offtake rights from Mount Marion.

The acquisition of the Mt Edwards Lithium Project adds a prospective brownfield holding to the pipeline of potential additional sources of spodumene to support Neometals’ strategy to build an integrated lithium business.

Remaing parts of transaction continuing

Neometals and Apollo Phoenix Resources Pty Ltd are now working through the remaining conditions precedent to Neometals’ acquisition of the underlying Mt Edwards tenements and separate nickel rights package from Apollo.

Completion of that component of the acquisition is anticipated to occur within one to two months.

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Mon, 30 Apr 2018 10:18:00 +1000 http://www.proactiveinvestors.com.au/companies/news/196001/neometals-completes-mt-edwards-lithium-rights-component-of-acquisition-196001.html
<![CDATA[News - Neometals reveals nickel JORC resource at Mt Edwards ]]> http://www.proactiveinvestors.com.au/companies/news/195313/neometals-reveals-nickel-jorc-resource-at-mt-edwards-195313.html Neometals Ltd (ASX:NMT) has revealed a 48,200-tonne nickel JORC resource within the Mt Edwards Lithium Project in Western Australia.

In mid-March 2018, Neometals executed binding agreements to acquire a package of tenure and mineral rights including lithium and nickel rights comprising the Mt Edwards Project.

READ: Neometals to acquire Mt Edwards Lithium Project

A detailed review of the historical JORC 2004 resource estimate was able to promote the resource to JORC 2012 standards.

The 3.05 million tonnes at 1.6% nickel for 48,200 tonnes of contained nickel is spread across six deposits.

Nickel to form part of exploration strategy at the project area

Nickel is an essential component of battery for the electric vehicle and electric static storage markets.

Neometals has decided nickel will form part of its exploration and development strategy in the project area.

Acquisition expected to complete in 2-3 months

Completion of the acquisition remains conditional upon the receipt of any necessary ministerial consents to the transfer of the tenements together with any necessary consents.

Completion is anticipated to occur within 2 to 3 months.

Plans to build and operate a lithium hydroxide plant

Neometals aims to produce battery quality lithium hydroxide from Mt Marion spodumene in a bid to become an integrated lithium producer.

Although it is a minority equity holder (13.8%) in the Mt Marion mine it is able to be supplied under its off-take option agreement.

Neometals aims to build and operate a processing plant to produce 10,000 tonnes per annum of lithium hydroxide.

This would provide a secure, reliable supply to the electric vehicle and storage battery sector from 2021.

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Thu, 19 Apr 2018 11:31:00 +1000 http://www.proactiveinvestors.com.au/companies/news/195313/neometals-reveals-nickel-jorc-resource-at-mt-edwards-195313.html
<![CDATA[News - Neometals expands titanium vanadium resource at Barrambie ]]> http://www.proactiveinvestors.com.au/companies/news/195095/neometals-expands-titanium-vanadium-resource-at-barrambie-195095.html Neometals Ltd (ASX:NMT) has expanded the JORC resource of its 100% owned Barrambie Project in Western Australia.

The new resource estimate is 280.1 million tonnes grading 9.18% titanium dioxide and 0.44% vanadium pentoxide to 80 metres vertical depth.

This results in a contained titanium resource exceeding 25 million tonnes and contained vanadium resource exceeding 1.2 million tonnes.

Includes high-grade section of resource

Barrambie's global resource includes high-grade sections of both titanium and vanadium.

The high-grade titanium subset totals 53.6 million tonnes grading 21.17% titanium and 0.63% vanadium pentoxide.

The high-grade vanadium subset totals 64.9 million tonnes grading 0.82% vanadium and 16.9% titanium.

READ: Neometals continues to advance titanium-vanadium direct shipping ore project

Neometals CEO Chris Reed said: "As we progress the dual-track evaluation of direct shipping ore and integrated titanium/vanadium production, and with strong market conditions and pricing, it is timely to update the resource and maiden exploration target.

“Barrambie is globally significant in both size and grade, and offers significant optionality in terms of timing, scale and commodity focus for optimal development”

Drilling planned to unlock Exploration Target potential

While the resource has been significantly increased, Barrambie’s total Exploration Target shows how much larger this resource can potentially become.

The consultant, in accordance with the JORC code estimated the Exploration Target to be about 470 to 700 million tonnes grades at 6% to 10% titanium dioxide and 0.3% to 0.5% vanadium pentoxide.

Drilling to target Barrambie Deeps

In the coming 12 months Neometals intends to drill test the Barrambie Deeps target as deep as 230 metres.

Barrambie Deeps is located below the current mineral resource, which extends down only 80 metres.

Additionally, a review of the aeromagnetic surveys is planned to assess the potential along strike extension of the Ballanhoe Hills target south into E57/1041

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Tue, 17 Apr 2018 09:41:00 +1000 http://www.proactiveinvestors.com.au/companies/news/195095/neometals-expands-titanium-vanadium-resource-at-barrambie-195095.html
<![CDATA[News - Neometals receives validation for its lithium hydroxide process ]]> http://www.proactiveinvestors.com.au/companies/news/194576/neometals-receives-validation-for-its-lithium-hydroxide-process-194576.html Neometals Ltd (ASX:NMT) has received test results validating the high-purity lithium hydroxide process.

Vendor testing by Veolia Water Technologies produced a 99.99% pure lithium hydroxide monohydrate.

Significantly, this product is suitable for use in the lithium-ion battery sector.

The test work was conducted on run‐of‐mine 6% lithium oxide spodumene concentrates from the Mt Marion mine, which Neometals has a 13.8% interest in.

READ: Neometals enters June quarter with $41.8 million cash

Neometal’s chief executive Chris Reed said: "We are extremely pleased with the outstanding test work conducted by Veolia Water Technologies.

“The results we have received from the sample concentrate sent from Mt Marion validates the production process, material calculations and design criteria.

“We have a sound basis to now advance the front-end engineering design and feasibility studies which are scheduled for completion in 2019.”

Plans to build and operate a lithium hydroxide plant

Neometals aims to produce battery quality lithium hydroxide from Mt Marion spodumene in a bid to become an integrated lithium producer.

Although it is a minority equity holder in the Mt Marion mine it is able to be supplied under its off-take option agreement.

Neometals aims to build and operate a processing plant to produce 10,000 tonnes per annum of lithium hydroxide.

This would provide a secure, reliable supply to the electric vehicle and storage battery sector from 2021.

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Tue, 10 Apr 2018 14:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/194576/neometals-receives-validation-for-its-lithium-hydroxide-process-194576.html
<![CDATA[News - Neometals enters June quarter with $41.8 million cash ]]> http://www.proactiveinvestors.com.au/companies/news/194563/neometals-enters-june-quarter-with-418-million-cash-194563.html Neometals Ltd (ASX:NMT) has increased its cash and cash equivalents balance by $2 million from the prior quarter to $41.8 million.

During the quarter, the company received $4.1 million the operating company for the Mt Marion Lithium Project.

This equates to repayment of 50% of the original amount loaned as working capital with the remaining 50% expected to be received prior to 30 June 2018.

Neometals holds 13.8% in Mt Marion

Neometals has a 13.8% equity interest in the Mt Marion Lithium Project in Western Australia.

It is a world class operation producing 450,000 tonnes per annum in concentrates with a large resource of 77.8 million tonnes grading 1.37% lithium oxide.

READ: Neometals to acquire Mt Edwards Lithium Project

In mid-March 2018, Neometals outlined that it would be acquiring the Mt Edwards Lithium Project near Kalgoorlie in Western Australia for a cash consideration of $2.5 million and additional contingent payments.

The brownfields lithium exploration project is 40 kilometres from the Mount Marion mine.

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Tue, 10 Apr 2018 08:38:00 +1000 http://www.proactiveinvestors.com.au/companies/news/194563/neometals-enters-june-quarter-with-418-million-cash-194563.html
<![CDATA[News - Neometals to acquire Mt Edwards Lithium Project ]]> http://www.proactiveinvestors.com.au/companies/news/193203/neometals-to-acquire-mt-edwards-lithium-project-193203.html Neometals Ltd (ASX:NMT) is acquiring the Mt Edwards Lithium Project near Kalgoorlie in Western Australia for a cash consideration of $2.5 million and additional contingent payments.

The brownfields lithium exploration project is 40 kilometres from the Mount Marion mine in which Neometals has a 13.8% interest.

READ: Neometals progresses downstream integrated lithium supply chain strategy

Neometals managing director Chris Reed said: “This acquisition will increase and broaden our lithium asset base and, subject to exploration success, will potentially provide a second source of spodumene production enabling an integrated lithium business to grow in size and scale.

“Our strategy is to integrate to move down the cost curve then scale the business up to meet the demands of the next decade.”

Globally significant lithium province

The Mt Edwards Lithium Project is situated centrally within what is emerging as a highly endowed and globally significant lithium province.

Neometals now has a combination of tenements and mineral rights covering 240 square kilometres in this region.

The tenement package being acquired also contains several nickel assets.

Lithium hydroxide business planned

Neometals is evaluating a local lithium hydroxide facility in the Kalgoorlie region to process its offtake rights from Mount Marion (a minimum of 12.37% of production from February 2020).

The acquisition of the Mt Edwards Lithium Project adds a prospective brownfield holding to the pipeline of potential additional sources of spodumene to support Neometals’ strategy to build an integrated lithium business.

The company also owns 36% of Hannans Ltd (ASX:HNR) which holds a significant tenure package at Mt Holland, adjoining Kidman Resources(ASX:KDR)/SQM’s Early Grey Lithium Project in the Yilgarn Region.

READ: Neometals continues to advance titanium-vanadium direct shipping ore project

The company recently provided an update for its potential direct shipping ore (DSO) operation at its 100% owned Barrambie Project in Western Australia.

Barrambie is not only one of the world’s highest-grade titanium deposits, but it also has a significant endowment of high-grade vanadium.

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Thu, 15 Mar 2018 15:42:00 +1100 http://www.proactiveinvestors.com.au/companies/news/193203/neometals-to-acquire-mt-edwards-lithium-project-193203.html
<![CDATA[News - Neometals prepares to release details on a material acquisition ]]> http://www.proactiveinvestors.com.au/companies/news/193197/neometals-prepares-to-release-details-on-a-material-acquisition-193197.html Neometals Ltd (ASX:NMT) has been granted a trading halt by the Australian Securities Exchange (ASX).

The company requested the halt while it prepares to release further details regarding a material acquisition.

The trading halt will remain in place until the earlier of commencement of trading on Monday or details are released regarding the acquisition.

READ: Neometals continues to advance titanium-vanadium direct shipping ore project

Most recently, Neometals provided an update for its potential direct shipping ore (DSO) operation at its 100% owned Barrambie Project in Western Australia.

Barrambie is not only one of the world’s highest-grade titanium deposits, but it also has a significant endowment of high-grade vanadium.

It has a JORC resource of 47.2 million tonnes grading 22.2% titanium oxide and 0.63% vanadium pentoxide.

Earlier this year, Neometals received applicable mining regulatory approvals for the mining of a 50,000 tonne DSO sample.

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Thu, 15 Mar 2018 11:46:00 +1100 http://www.proactiveinvestors.com.au/companies/news/193197/neometals-prepares-to-release-details-on-a-material-acquisition-193197.html
<![CDATA[News - Neometals continues to advance titanium-vanadium direct shipping ore project ]]> http://www.proactiveinvestors.com.au/companies/news/192953/neometals-continues-to-advance-titanium-vanadium-direct-shipping-ore-project-192953.html Neometals Ltd (ASX:NMT) is further advancing its potential direct shipping ore (DSO) operation at its 100% owned Barrambie Project in Western Australia.

Barrambie is not only one of the world’s highest-grade titanium deposits, but it also has a significant endowment of high-grade vanadium.

It has a JORC resource of 47.2 million tonnes grading 22.2% titanium oxide and 0.63% vanadium pentoxide.

Earlier this year, Neometals received applicable mining regulatory approvals for the mining of a 50,000 tonne DSO sample.

READ: Neometals evaluates direct shipping of titanium and vanadium

Most recently, close-spaced, grade control drilling of the proposed pit area has been completed, which is currently being modelled.

Drilling in the proposed bulk sample pit has confirmed continuity, dimensions and tenor of high-grade mineralisation.

Intersections included 13 metres 33.7 % titanium oxide and 0.81 % vanadium pentoxide from surface.

Exploration drilling confirms nearby mineralisation at Virginia Hills

Following the success of initial drilling completed at Virginia Hills in June 2017 a further 19 holes were completed.

This drilling has intersected moderate-grade titanium oxide and high-grade vanadium mineralisation, similar to the Central Zone mineralisation at Barrambie.

The drilling confirms continuity over 8 kilometres of strike of vanadium-titanium mineralisation at the Virginia Hills prospect.

Negotiations continue for mining, haulage and port handling

Negotiations for mining, haulage and port handling for the Barrambie bulk sample remain in progress.

A marketing visit to China is in progress.

READ: Neometals has strong valuation upside according to research report

Recently, a London-based investment group applied a fair net asset value for Neometals of $1.43 per share.

This valuation is at a significant premium to the current share price of $0.355.

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Mon, 12 Mar 2018 10:03:00 +1100 http://www.proactiveinvestors.com.au/companies/news/192953/neometals-continues-to-advance-titanium-vanadium-direct-shipping-ore-project-192953.html
<![CDATA[News - Neometals has strong valuation upside according to research report ]]> http://www.proactiveinvestors.com.au/companies/news/191417/neometals-has-strong-valuation-upside-according-to-research-report-191417.html Neometals Ltd (ASX:NMT) is significantly undervalued and has strong valuation upside, according to a research report from Arlington Group Asset Management Limited.

The London-based investment group, which was engaged by Neometals, has applied a fair net asset value of $1.43 on the stock, around four times trading levels of $0.35 to $0.36.

Arlington states in the report that separating Neometals “into its constituent parts would lead to better understanding and a higher valuation”.

The parts referred to are the company’s mining assets and its technology assets.

READ: Neometals evaluates direct shipping of titanium and vanadium

The following is an extract from the report:

Buy a MiningCo. get a TechCo. for free

Following its reinvention as a battery materials company, Neometals is not widely owned by institutional investors and, as a result, a lot of its important developments have gone under the radar.

We believe that the market sees it as a holding company with a minority share of the Mt Marion lithium mine and a bunch of early-stage tech developments.

We believe a simple reorganisation and separation of the tech and mining assets can better showcase the company for what it is, a MiningCo. with a holding in a world-class lithium mine and exciting TiO2 and LiOH projects; and a world-class battery materials TechCo. with significant development and growth potential, which should trade on a substantially higher multiple.

Mining is the past and the present

NMT’s 13.8% share in the Mt Marion lithium mine should continue to yield strong cash flow for many years, potentially allowing NMT to develop the Barrambie titanomagnetite DSO project and continue to develop the associated TiO2 project.

The LiOH plant is a positive addition to this.

But Tech is the future

However, we believe that the company’s unfancied tech assets are the key.

While not yet commercially proven, we believe that the battery recycling tech could be a game-changer, and it has a developing tech royalty business which could become a good earner.

Split would realise better multiples

The market is willing to attribute very different multiples to mining and tech stocks.

Highly capital intensive and cyclical mining gets low multiples, and tech, with low capital int., high margins and growth potential, can derive much higher multiples.

While TechCo. is small at this stage we believe it has significant value upside as a standalone.

Strong valuation upside

We value Neometals on a Sum of the Parts basis using DCF valuations. Our NAV (net asset value) is A$1.90 and we apply a 25% Conglomerate discount to give a fair value of A$1.43.

We believe that the stock is significantly undervalued and that a separation into its constituent parts would lead to better understanding and a higher valuation.

Investment summary

The company that emerged from the failure of the Meekatharra gold project is a totally different animal to the one that went in, but this has been largely unnoticed by investors, in our view.

Neometals is now an exciting project developer with a good net cash position, a 13.8% share of earnings from a world-class lithium mine, integrated lithium and titanium chemical opportunities, and interests in exciting hydrometallurgical technologies for its emerging royalties business.

However, we believe that the sheer number and diversity of the projects underway at Neometals is one of the factors putting investors off and we believe that a simple splitting of the company into a mining entity and a tech entity will result in a significant improvement in the market perception, and hence the valuation, of the stock.

READ: Neometals progresses downstream integrated lithium supply chain strategy

We believe that Neometals should split into:

- MiningCo. holding the company’s 13.8% share in the Mt Marion Lithium mine, its 100% share in the Kalgoorlie LiOH project, and 100% share in the Barrambie project, where we see DSO titanomagnetite as potential for early cash flow ahead of full-scale development of an integrated titanium dioxide operation where a PFS indicates production costs at the bottom of the global cost curve.

- TechCo. which would hold the company’s tech and royalty assets.

We believe that the company’s battery recycling project is the most exciting of its Tech projects, given its potential to yield low-cost cobalt as well as other metals.

The company also has projects underway in lithium, via its ELi® LiOH process, direct lithium extraction from brines and development of lithium titanate (LTO) anode materials, which we believe could all be game-changers in their own right.

The royalty part of the business (Alphamet) focuses on licensing of the company’s proprietary hydrometallurgical technologies to producers and also has significant new business development potential, in our view.

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Fri, 09 Feb 2018 10:43:00 +1100 http://www.proactiveinvestors.com.au/companies/news/191417/neometals-has-strong-valuation-upside-according-to-research-report-191417.html
<![CDATA[News - Neometals evaluates direct shipping of titanium and vanadium ]]> http://www.proactiveinvestors.com.au/companies/news/190498/neometals-evaluates-direct-shipping-of-titanium-and-vanadium-190498.html Neometals Ltd (ASX:NMT) aims to take advantage of strong titanium and vanadium prices by evaluating direct shipping options for its Barrambie project in Western Australia.

The company has received approvals to mine a circa 50,000 tonne bulk sample of high grade titanium at Barrambie and is awaiting road transport approval.

Grade control drilling has been completed in the area proposed for mining of the sample and assays are pending.

Examining DSO options

Neometals is examining direct shipping ore (DSO) options for the high grade titanium and vanadium as an option for project development.

Chris Reed, managing director, said: “With titanium and vanadium prices at near five-year highs and recent additions to the executive team, we are accelerating technical and commercial activities for Barrambie.

“With the natural advantages of the Barrambie resource we are confident of finding the best development option.”

READ: Neometals admitted to Nasdaq International Designation

The project hosts one of the world’s highest grade hard rock titanium deposits and also has significant levels of high grade vanadium.

Prices are at high levels due to strong demand in energy storage and pigment markets, exacerbated by Chinese production cutbacks due to environmental compliance issues.

Barrambie titanium and vanadium resource

Barrambie has a resource of 47.2 million tonnes at 22% titanium and 0.63% vanadium and within this is a higher grade vanadium resource grading 0.91%.

Beneficiation studies have shown this zone can be upgraded to concentrate zones of 1.4% vanadium while test work is showing titanium concentrate grades in excess of 36%.

The option of DSO with a titanium focus is the primary evaluation area for Neometals and comprehensive cost modelling has been undertaken.

Sample sent to Chinese processor

A representative sample of Barrambie DSO from the planned starter pits has been received by a Chinese titanium processor with performance tests to be completed on the sample.

The company has recently appointed former Iluka and Talison executive Paul Wallwork as general manager of marketing and product development.

Together with Eileen Hao, Neometals’ general manager in China, discussions with toll treatment operators as well as titanium and vanadium end users are progressing.

READ: Neometals progresses downstream integrated lithium supply chain strategy

Neometals wholly owns the Barrambie project and has a 13.8% interest in the Mt Marion Lithium Project, also in Western Australia.

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Wed, 24 Jan 2018 09:28:00 +1100 http://www.proactiveinvestors.com.au/companies/news/190498/neometals-evaluates-direct-shipping-of-titanium-and-vanadium-190498.html
<![CDATA[News - Neometals progresses downstream integrated lithium supply chain strategy ]]> http://www.proactiveinvestors.com.au/companies/news/188687/neometals-progresses-downstream-integrated-lithium-supply-chain-strategy-188687.html Neometals Ltd (ASX:NMT) is making progress with its downstream integrated lithium supply chain strategy aimed at serving automotive and grid storage applications.

The company has started wet commissioning of a pilot plant in Canada for its Lithium Battery Recycling Project.

Vendor test work is progressing in the U.S. for Neometals’ Lithium Hydroxide Project.

The third string in the strategy is a Lithium Titanate Research Project and product from optimisation test work has been sent for testing in the U.S.

Strong demand growth for lithium

Lithium prices are at historically high levels due to sustained strong demand growth driven by electric vehicles and energy storage markets.

Market demand is forecast to grow significantly through to 2025 and is likely to continue to challenge supply.

This growth has stimulated construction of new processing capacity, particularly in hard rock conversion in China.

Neometals has developed a strategy in a bid to take advantage of market forecasts.

The company is co-developing technology to economically recover high-value cobalt and other compounds that can be recycled within the battery manufacturing chain.

READ: Neometals admitted to Nasdaq International Designation

Most of the fabrication and construction of a 100 kilogram per day mini-max pilot plant in Montreal, Canada, has been completed.

Commissioning of the first sections of the plant is underway and campaigns to process the major commercial battery chemistries will begin in the first quarter of 2018.

The pilot plant will also test batteries supplied by consumer electronics manufacturers and car makers.

Assessing lithium processing facility

The Lithium Hydroxide Project aims to utilise product from Mt Marion Lithium Project in Western Australia, in which Neometals has a 13.8% interest.

The company is progressing the assessment and development of a lithium processing facility near Kalgoorlie, close to the Mt Marion operation.

Kwinana, near Perth, is also being investigated as a potential site.

Vendor equipment and metallurgical test work is progressing in North America and results have been positive.

Work is developing on the flow sheet design, process design criteria and mass balance basis for a proposed front end engineering design (FEED) study.

A report from this test work is scheduled for delivery in mid‐February 2018.

If it proceeds, the FEED study report is expected in late 2018 and will facilitate an investment decision for the project.

READ: Neometals lodges patent with eye on lithium-ion batteries

Neometals has applied for a provisional patent for the Lithium Titanate Research Project to protect the intellectual property.

It has also conducted optimisation testing through CSIRO.

Product from this work has been sent for testing in the U.S. and results are expected in January 2018.

Anode material can replace graphite

Lithium titanate is an anode material that can replace graphite.

The primary advantage over graphite is the surface area of the anode is around 100 square metres per gram in contrast to typically three square metres for graphite.

Chris Reed, managing director, said: “2017 has been a successful year for the company and has seen us advance our strategy to maximise the value of our future lithium offtake through downstream processing and battery recycling.

“We are engaged in discussions with parties across the entire lithium battery supply chain to commercialise our downstream projects and are confident of delivering on our strategy with strong industry players.”

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Wed, 13 Dec 2017 10:12:00 +1100 http://www.proactiveinvestors.com.au/companies/news/188687/neometals-progresses-downstream-integrated-lithium-supply-chain-strategy-188687.html
<![CDATA[News - Neometals admitted to Nasdaq International Designation ]]> http://www.proactiveinvestors.com.au/companies/news/188397/neometals-admitted-to-nasdaq-international-designation-188397.html Neometals Ltd (ASX:NMT) has been admitted to the Nasdaq International Designation which supports companies in innovative industries.

The company’s Level 1 American Depository Receipts (ADRs) have traded in the US over the counter (OTC) market since 2010.

As the ADRs have met requisite standards, Neometals has been admitted to the Nasdaq International Designation.

READ: Neometals shares continue to rise on titanium assays

The program is for non US-based companies that have Level 1 ADRs or shares that trade in the OTC market.

It provides member companies with full service from Nasdaq including investor relations and greater access to US investors.

Members come from Australia, Japan, Germany, Brazil, Canada, the UK and the Netherlands.

READ: Neometals' shares spike on positive investor sentiment in lithium sector

Neometals wholly owns the Barrambie Titanium Project and has a 13.8% interest in the Mt Marion Lithium Project, both in Western Australia.

The company has also developed technology to enhance production of its specialty metals.

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Thu, 07 Dec 2017 09:01:00 +1100 http://www.proactiveinvestors.com.au/companies/news/188397/neometals-admitted-to-nasdaq-international-designation-188397.html
<![CDATA[News - Neometals shares continue to rise on titanium assays ]]> http://www.proactiveinvestors.com.au/companies/news/186983/neometals-shares-continue-to-rise-on-titanium-assays-186983.html Neometals (ASX:NMT) has received another set of drilling results from its high-grade Barrambie Titanium Project located in Western Australia.

Results are from 20 holes drilled within the titanium oxide starter pit area for the purpose of collecting samples for metallurgical testwork.

Significant high-grade intercepts returned from recent metallurgical drilling included 71.0 metres at 34.1% titanium oxide and 0.86% vanadium pentoxide from surface to end of hole.

The aim of the test work underway at Barrambie is to produce concentrates for the ‘Neomet Process’ Pilot Plant in Canada and to evaluate fast-tracking a direct shipping ore operation.

Barrambie hosts one of the world’s highest grade titanium deposits with a JORC resource of 47.2 million tonnes grading 22% titanium oxide.

Drill result details

During the recent July quarter, 20 metallurgical testwork holes were drilled within the starter pit area.

Previously, the results for only the top 40 metres of each hole were released, corresponding to the planned depth of the initial starter pits.

Drill results from the total hole lengths include:

- 71.0 metres at 34.1% titanium oxide and 0.86% vanadium pentoxide from surface to end of hole;
- 71.0 metres at 33.1% titanium oxide and 0.69% vanadium pentoxide from surface to end of hole;
- 71.0 metres at 32.4% titanium oxide and 0.82% vanadium pentoxide from surface to end of hole;
- 71.0 metres at 32.1% titanium oxide and 0.72% vanadium pentoxide from surface to end of hole;
- 71.0 metres at 32.3% titanium oxide and 0.75% vanadium pentoxide from surface to end of hole; and
- 71.0 metres at 31.9% titanium oxide and 0.59 % vanadium pentoxide from surface to end of hole.

Neomet Process testing in Canada

The beneficiation test work will be completed this month and the majority of the concentrates will be freighted to Neometals’ laboratory in Montreal, Canada.

The concentrates will then be used to commence pilot plant testing of the Neomet Process.

The Neomet Process is an extraction process that Neometals plans to licence to titanium industry partners.

The company plans to commence pilot testing in the June quarter 2018 after the lithium-ion battery recycling pilot campaign, which will be commissioned in December.

Direct shipping ore (DSO) operation

Neometals also continues to evaluate fast-tracking the start-up of Barrambie as a DSO operation.

The company has delivered a representative sample of Barrambie ore from the planned starter pits to China for evaluation by a titanium processor.

If the customer performance tests of the ore are positive and logistic studies show it is viable, Neometals will negotiate the sale of ore, on terms that recognise the contained value in the ore, to selected processors in the titanium supply chain.

A draft mining proposal for small operation has been lodged to cover extraction of a bulk sample of up to 50,000 tonnes.

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Thu, 09 Nov 2017 15:32:00 +1100 http://www.proactiveinvestors.com.au/companies/news/186983/neometals-shares-continue-to-rise-on-titanium-assays-186983.html
<![CDATA[News - Neometals' shares spike on positive investor sentiment in lithium sector ]]> http://www.proactiveinvestors.com.au/companies/news/185296/neometals-shares-spike-on-positive-investor-sentiment-in-lithium-sector-185296.html Neometals Ltd's (ASX:NMT) shares have been getting snapped up by investors recently, and the company has received a speeding ticket from the ASX in the form of a price and volume query.

The company's shares hit an intra-day high of $0.37 yesterday, up 8.8% from the previous session close.

The ASX also noted an increase in volume over recent days.

Neometals noted back to the exchange that it is not aware of any information not released that could explain the recent trading activity, but did however quote:

"The company notes that there has been a general increase in market sentiment for companies in the lithium sector in recent weeks with a number of companies across the sector experiencing significant share price appreciation."

Neometals currently holds a 13.8% stake in the globally-significant Mt Marion Lithium Project in Western Australia.

Minerals Resources Ltd (ASX:MIN) (43.1% stake) is the project operator and Australia’s largest contract minerals processor.

The final partner is Ganfeng Lithium (43.1% stake), which is China’s largest, most diverse lithium producer.

World-class titanium exposure

The portfolio of Neometals also includes the Barrambie Titanium Deposit in Western Australia, which is one of the world’s highest‐grade titanium deposits.

Test work recently commenced.

READ NOW: Neometals commences test work at one of the world’s highest‐grade titanium deposits

Adding further interest to the company, is its exposure to the lithium-ion batteries sector.

Neometals recently lodged an Australian provisional patent application associated with its technology to produce lithium titanate oxide for use in lithium-ion batteries.

Neometals has a dedicated subsidiary, Neomaterials Pty Ltd, to hold its interest in the intellectual property and patent applications for this advanced battery material process.

Test work results indicate performance of the material in the larger scale pouch-cell was superior to the commercially available lithium titanate, and re-confirmed in multiple coin-cell tests.

All tests had NCM cathode and LTO anode.

Neometals is well-funded with $46.5 million in cash at the end of June 2017.

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Tue, 10 Oct 2017 09:19:00 +1100 http://www.proactiveinvestors.com.au/companies/news/185296/neometals-shares-spike-on-positive-investor-sentiment-in-lithium-sector-185296.html
<![CDATA[News - Neometals lodges patent with eye on lithium-ion batteries ]]> http://www.proactiveinvestors.com.au/companies/news/184038/neometals-lodges-patent-with-eye-on-lithium-ion-batteries-184038.html Neometals Ltd (ASX:NMT) has lodged an Australian provisional patent application associated with its technology to produce lithium titanate oxide for use in lithium-ion batteries.  

Neometals has a dedicated subsidiary, Neomaterials Pty Ltd, to hold its interest in the intellectual property and patent applications for this advanced battery material process.

Test work results indicate performance of the material in the larger scale pouch-cell was superior to the commercially available lithium titanate, and re-confirmed in multiple coin-cell tests.

All tests had NCM cathode and LTO anode.

Chris Reed, managing director, commented:

"The lodgement of this patent application is consistent with Neometals’ IP strategy to protect its competitive advantage once the commercial viability emerges.

"Our goal is to justify the addition of a LTO circuit to the Lithium Hydroxide project to further multiply the value of our lithium units."

Neometals is undertaking optimisation testwork at the CSIRO to accelerate the commercialisation of this advanced battery material technology.

The program is expected to be completed by the end of the December quarter and will produce product for evaluation by battery producers.

READ NOW: Neometals commences test work at one of the world’s highest‐grade titanium deposits ]]>
Fri, 15 Sep 2017 00:25:00 +1000 http://www.proactiveinvestors.com.au/companies/news/184038/neometals-lodges-patent-with-eye-on-lithium-ion-batteries-184038.html
<![CDATA[News - Neometals enters first sub-licence agreement for the Neomet Process technology ]]> http://www.proactiveinvestors.com.au/companies/news/183947/neometals-enters-first-sub-licence-agreement-for-the-neomet-process-technology-183947.html Neometals Ltd (ASX:NMT) has achieved a milestone, following its wholly-owned subsidiary, Alphamet Management Pty Ltd, entering into the first sub-license agreement for the application of the Neomet Process.

The patented, environmentally friendly process technology has broad applications in the recovery of a wide range of metal oxides from chloride leach solutions.

Next steps

Subject to satisfactory pilot testing, the agreement will see the Neomet Process technology used at a steel mill in the Republic of Serbia to recover zinc, copper, iron, silver and lead from a new modular EAF Dust Processing plant.

The company sees this agreement as a solid step forward in its strategy to develop and hold a portfolio of royalty interests from sub‐licencing the technology in addition to deploying the process on its Barrambie Titanium Project.

READ NOW: Neometals commences test work at one of the world’s highest‐grade titanium deposits

Neometals has a strategic alliance with the Australian Engineers, Sedgman Limited, to provide the platform for the commercialisation of the technology, at no cost to Neometals.

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Thu, 14 Sep 2017 13:10:00 +1000 http://www.proactiveinvestors.com.au/companies/news/183947/neometals-enters-first-sub-licence-agreement-for-the-neomet-process-technology-183947.html
<![CDATA[News - Neometals commences test work at one of the world’s highest‐grade titanium deposits ]]> http://www.proactiveinvestors.com.au/companies/news/183872/neometals-commences-test-work-at-one-of-the-worlds-highestgrade-titanium-deposits-183872.html Neometals Ltd (ASX:NMT) has commenced pilot‐scale beneficiation test work as it advances development plans for the Barrambie Titanium Deposit, which is located in Western Australia.

Barrambie is one of the world’s highest‐grade titanium deposits.

The aim of the test work is to produce concentrates for the ‘Neomet Process’ Pilot Plant and for a direct shipping ore operation.

Recent metallurgical drilling delivered: 40.0 metres at 34.6% titanium dioxide and 0.72% vanadium from surface; 40.0 metres at 34.4% titanium dioxide and 0.66% vanadium from surface; and 40.0 metres at 34.1% titanium dioxide and 0.70% vanadium from surface.

The revised Neomet Process will undergo pilot trials in late 2017.

Neometals plans to licence the Neomet Process to titanium industry partners.

The license will be conditional on the entry into a long‐term, take‐or-pay off-take agreement, for Barrambie titanium concentrates.

Metallurgical pilot test work details

Neometals has commenced the pilot scale beneficiation test work at Nagrom Metallurgical laboratories in Perth.

The concentrate that will be produced will be supplied to Chinese titanium producers and for the pilot scale test work of the Neomet Process at the company’s facility in Montreal, Canada.

Analysis

Neometals has mapped out a clear plan at Barrambie, starting with the above pilot scale beneficiation test work.

This will be followed by a pilot scale hydromet test work in the December quarter 2017, and then decisions on direct shipping ore, toll treatment and / or off-take in the March quarter 2018.

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Tue, 12 Sep 2017 20:20:00 +1000 http://www.proactiveinvestors.com.au/companies/news/183872/neometals-commences-test-work-at-one-of-the-worlds-highestgrade-titanium-deposits-183872.html
<![CDATA[News - Neometals passes $6M buy-back milestone ]]> http://www.proactiveinvestors.com.au/companies/news/183400/neometals-passes-6m-buy-back-milestone-183400.html Neometals Ltd (ASX:NMT) continues its on-market buy-back, and has now purchased over 21.5 million shares for circa $6 million.

Neometals currently holds a 13.8% stake in the globally-significant Mt Marion Lithium Project in Western Australia.

Minerals Resources Ltd (ASX:MIN) (43.1% stake) is the project operator and Australia’s largest contract minerals processor.

The final partner is Ganfeng Lithium (43.1% stake), which is China’s largest, most diverse lithium producer.

Neometals updates from Mount Marion following Mineral Resources results ]]>
Tue, 05 Sep 2017 09:02:00 +1000 http://www.proactiveinvestors.com.au/companies/news/183400/neometals-passes-6m-buy-back-milestone-183400.html
<![CDATA[News - Neometals updates from Mount Marion following Mineral Resources results ]]> http://www.proactiveinvestors.com.au/companies/news/182576/neometals-updates-from-mount-marion-following-mineral-resources-results-182576.html Neometals Ltd (ASX: NMT) currently holds a 13.8% stake in the globally-significant Mt Marion Lithium Project in Western Australia.

Minerals Resources Ltd (ASX:MIN) (43.1% stake) is the project operator and Australia’s largest contract minerals processor.

The final partner is Ganfeng Lithium (43.1% stake), which is China’s largest, most diverse lithium producer.

Neometals comments on Mineral Resources FY17 results

Neometals noted the announcement by MIN of its full-year financial results for FY17.

MIN's announcement reports EBITDA per tonne for Reed Industrial Minerals Pty Ltd (RIM), the project vehicle for the Mount Marion Lithium Project, which equates to $14 million during the second half of FY17 and forecasts approximately $72 million for the first half of FY18.

Neometals 13.8% (reflecting NMT’s shareholding in RIM) of the 2H FY17 EBITDA is circa $2 million and of the 1H FY18 forecast EBITDA would be around $10 million.

RIM has a positive obligation to distribute profits to the maximum extent.

However, the receipt by NMT of any earnings achieved by RIM will be subject to the RIM board resolving to pay dividends to its shareholders, having regard to (among other things) tax obligations, the future capital requirements of the business and the repayment of outstanding shareholder loans.

Neometals outlined that it was not involved in preparing the information regarding RIM released by MIN.

However, Neometals added that it is not aware of any reason why the information is incorrect as released by MIN, the operator of the Mount Marion Lithium Project (via its wholly owned subsidiary, Process Minerals International Pty Ltd).

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Thu, 17 Aug 2017 13:56:00 +1000 http://www.proactiveinvestors.com.au/companies/news/182576/neometals-updates-from-mount-marion-following-mineral-resources-results-182576.html
<![CDATA[News - Neometals approaches buy-back milestone of 20 million shares ]]> http://www.proactiveinvestors.com.au/companies/news/182344/neometals-approaches-buy-back-milestone-of-20-million-shares-182344.html Neometals Ltd (ASX:NMT) has now bought over 19.5 million shares back on-market for a consideration of circa $5.8 million, as the company utilises its strong cash position.

Under the current program, another 8.6 million shares can be bought back.

Neometals currently holds a 13.8% stake in the globally-significant Mt Marion Lithium Project in Western Australia.

Minerals Resources ltd (ASX:MIN) (43.1% stake) is the project operator and Australia’s largest contract minerals processor.

The final partner is Ganfeng Lithium (43.1% stake), which is China’s largest, most diverse lithium producer.

Neometals looks to build technology portfolio

Neometals is also aiming to fast-track evaluation of proprietary recycling process to recover Lithium/Cobalt/Nickel from Lithiumion batteries.

The company also has a strategy to build a royalty portfolio from the commercialisation of Neomet Process with Sedgman and Andritz.

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Mon, 14 Aug 2017 09:54:00 +1000 http://www.proactiveinvestors.com.au/companies/news/182344/neometals-approaches-buy-back-milestone-of-20-million-shares-182344.html
<![CDATA[News - Neometals Ltd approaches $5 million mark in share buy-back ]]> http://www.proactiveinvestors.com.au/companies/news/181012/neometals-ltd-approaches-5-million-mark-in-share-buy-back-181012.html Neometals Ltd (ASX:NMT) continues its share buy-back and has now purchased circa 17.3 million shares on market for $4.86 million.

The program allows for a maximum of 28.15 million shares, leaving 10.8 million still available to be purchased.

Mt Marion

Neometals recently determined that the retention of its 13.8% equity stake in the Mt Marion Lithium Project in Western Australia is in the best interests of shareholders.

The decision comes after a period of improved offtake pricing structure and levels, and the achievement of significant project milestones.

The Mt Marion Lithium Project is owned by:

- 43.1% Mineral Resources (ASX:MIN);
- 43.1% Ganfeng Lithium; and
- 13.8% Neometals.

Minerals Resources is the project operator and Australia’s largest contract minerals processor.

Ganfeng is China’s leading, most profitable lithium producer and has secured a life-of-mine, take-or-pay off-take agreement for Mt Marion.

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Tue, 18 Jul 2017 09:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/181012/neometals-ltd-approaches-5-million-mark-in-share-buy-back-181012.html
<![CDATA[News - Neometals Ltd opts to hold onto lithium mine equity ]]> http://www.proactiveinvestors.com.au/companies/news/180562/neometals-ltd-opts-to-hold-onto-lithium-mine-equity-180562.html Neometals Ltd (ASX:NMT) has determined that the retention of its 13.8% equity stake in the Mt Marion Lithium Project in Western Australia is in the best interests of shareholders.

The decision comes after a period of improved offtake pricing structure and levels, and the achievement of significant project milestones.

Neometals believes that these factors have materially enhanced the project’s intrinsic value.

Chris Reed, managing director, commented: “Since we originally offered to sell the stake in Mt Marion, we’ve been impressed by the production performance from site which, combined with the enhanced pricing structure and levels, makes a compelling case for retaining the stake and offtake rights.

“We will now focus on developing the next step in the lithium value chain, a downstream processing plant to produce lithium hydroxide, the key component in cathode chemistries for the electric vehicle and stationary storage battery revolution.”


Mt Marion

The Mt Marion Lithium Project is owned by:

- 43.1% Mineral Resources (ASX:MIN);
- 43.1% Ganfeng Lithium; and
- 13.8% Neometals.

Minerals Resources is the project operator and Australia’s largest contract minerals processor.

Ganfeng is China’s leading, most profitable lithium producer and has secured a life-of-mine, take-or-pay off-take agreement for Mt Marion.


Reasons for holding onto equity

Neometals has opted to end its sales process for its 13.8% equity stake in Mt Marion for a number of recently enhanced valuation factors.

In order of impact to valuation, they are:

- Recent re-negotiations of the offtake pricing mechanism with Ganfeng, which will deliver pricing linked to international lithium carbonate and hydroxide prices rather than bilateral spodumene market prices providing less variability in long-term pricing;
- Retention by the company of its binding offtake option rights for a minimum of 12.37% of production from Mt Marion from February 2020;
- The ramp-up in plant performance and product quality exceeding expectations with the shipment of 30,055 tonnes in May and late June/early July shipments totalling 50,000 tonnes; and
- Potential commitment to modify the process plant to facilitate production of all 6% lithium oxide spodumene concentrate, removing the discounted 4% lithium oxide product.


Possible demerger

Neometals has engaged advisers to assist it in considering demerging and separately listing the company’s technology and titanium assets.

The company will keep the market informed as to progress of this initiative and the timing of its implementation, if any.


Background

Alongside the 13.8% equity stake in Mt Marion, Neometals has a 70% interest in the ELi® lithium hydroxide processing technology; and a 50% ownership in the lithium battery recycling technology.

The company also has two titanium exposures being the 100% owned Barrambie Titanium Project and the Neomet titanium processing technology.

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Mon, 10 Jul 2017 11:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/180562/neometals-ltd-opts-to-hold-onto-lithium-mine-equity-180562.html
<![CDATA[News - Neometals Ltd and Mineral Resources Ltd update on offtake pricing ]]> http://www.proactiveinvestors.com.au/companies/news/180345/neometals-ltd-and-mineral-resources-ltd-update-on-offtake-pricing-180345.html Neometals Ltd (ASX:NMT) and Mineral Resources Ltd (ASX:MIN) has provided an update from the Mt Marion Lithium Operations.

Pursuant to the terms of the Offtake Agreement with their partner, Ganfeng Lithium, effective from 1 July 2017 the price payable per dry metric tonne of 6% spodumene concentrate produced at Mt Marion and delivered CFR China (Incoterms 2010) increased to US$841 from US$750.

Currently, Neometals has a sale process underway for its 13.8% equity in Mt Marion.

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Wed, 05 Jul 2017 13:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/180345/neometals-ltd-and-mineral-resources-ltd-update-on-offtake-pricing-180345.html
<![CDATA[News - Neometals lodges lithium battery recycling patents in U.S. ]]> http://www.proactiveinvestors.com.au/companies/news/179574/neometals-lodges-lithium-battery-recycling-patents-in-us-179574.html Neometals (ASX:NMT) has lodged three U.S. provisional patent applications associated with its technology to recover high‐value materials from spent lithium batteries.

The scoping studies completed to date confirm that the technology can economically recover high‐value cobalt (99.2% recovery), at potentially lowest quartile operating cost.

Neometals is constructing a 100 kilograms per day pilot plant in Canada to accelerate the commercialisation of the battery recycling technology. 

The pilot program is expected to be completed in the September quarter and test recoveries of cobalt, lithium, nickel and copper from nickel-manganese-cobalt cathode lithium batteries typically used in electric vehicles.

Chris Reed, managing director, commented: “The lodgement of these patent applications is consistent with Neometals’ intellectual property strategy to protect its competitive advantage once the commercial viability emerges.   

“We will continue our disciplined evaluation of the technology through piloting before undertaking an engineering cost study to satisfy the industry demand for a commercial, environmentally and ethically responsible, end‐of‐life solution for lithium batteries.”


Recovery plant scoping study

Neometals has co-developed a technology with its 50:50 Canadian joint venture partner to economically recover high-value cobalt and other metals.

Agreements have been executed to construct the pilot-scale hydrometallurgical plant at Neometals’ Montreal laboratory.

Details from the previously completed scoping study includes:

- Total capital cost: US$4.5 million;
- Life of plant: 10 years;
- Life of plant revenue: US$233 million;
- Average net operation cost: US$4.45 per pound cobalt or US$9,852 per tonne;
- Pre-tax cash flow: US$144 million;
- Pre-tax net present value: US$84 million; and
- Payback period: <1 year.

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Wed, 21 Jun 2017 09:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/179574/neometals-lodges-lithium-battery-recycling-patents-in-us-179574.html
<![CDATA[News - Neometals updates on Mt Marion as share buy-back continues ]]> http://www.proactiveinvestors.com.au/companies/news/179493/neometals-updates-on-mt-marion-as-share-buy-back-continues-179493.html Neometals (ASX:NMT) has provided an update on Mt Marion, with the company saying it is aware that Ganfeng Lithium Co., Ltd issued an announcement of the excellent performance of Mt Marion concentrates in their production of battery quality lithium carbonate and hydroxide, and the volumes of product shipped to date and guidance for the month of June.

Neometals confirms the Mt Marion operations have shipped a total of 79,000 tonnes of concentrates from February to the end of May, including 30,055 tonnes in May (majority 6% Li2O).

A shipment of 35,000 tonnes of similar quality is expected to depart on or about 27 June with another 15,000 tonnes expected the first week of July.

Neometals currently has a sale process underway for its remaining 13.8% equity in Mt Marion.


Share buy-back

Neometals has now purchased 16.5 million shares on-market for a consideration of $4.5 million.

Under the program another 11.6 million shares can still be bought.

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Tue, 20 Jun 2017 10:30:00 +1000 http://www.proactiveinvestors.com.au/companies/news/179493/neometals-updates-on-mt-marion-as-share-buy-back-continues-179493.html
<![CDATA[News - Neometals reveals proof of concept for lithium extraction ]]> http://www.proactiveinvestors.com.au/companies/news/178670/neometals-reveals-proof-of-concept-for-lithium-extraction-178670.html Neometals (ASX:NMT) has received more positive test results, this time in relation to its lithium and potassium extraction from brine processing technology.

Test work on its titanium‐based adsorbent shows the potential to deliver a more cost effective and environmentally friendly method of extracting lithium and potassium from sodium rich brines as compared to traditional solar evaporation.

Results show Neometals’ adsorbent technology is able to successfully recover lithium and potassium from salar brines while rejecting all of the sodium in solution.

Chris Reed, managing director, commented: “Proving this scalability of this technology will have significant implications for brine‐based producers and developers, who hold 75% of the world’s lithium resources. 

“Increasing the speed and yield of lithium extraction from brines and reducing operating and capital costs are the keys to unlocking supply needed to meet the lithium demands of the next decade.”


Neometals extraction technology

The conventional solar evaporation phase requires significant capital expenditure to construct a series of large evaporation ponds, significant maintenance of the operating ponds to harvest and store salt and has a circa12 month processing period.

Water in the brine that has been extracted from aquifers and salars is lost to the atmosphere through evaporation.

In comparison, Neometals’ proof-of-concept test results indicate that lithium and potassium adsorption, and rejection of sodium, could be conducted using conventional process equipment with residence times of less than 30 minutes.

Returning nearly all of the brine volume to the salar allows exploitation of salar aquifers with anticipated minimal impact on the water table.

Neometals is also evaluating other technologies that can be coupled with the adsorption technology to improve the conceptual flow-sheet.


Next steps

Neometals y has filed a provisional patent and Patent Cooperation Treaty (PCT) application.

Its strategy is to develop related technologies and commercialise the technologies with suitable partners.

The commercial strategy is licence the technology for royalties and to retain the right to deploy it as principal.   

Neometals will keep the market updated on all material developments with commercialisation partners.

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Fri, 02 Jun 2017 10:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/178670/neometals-reveals-proof-of-concept-for-lithium-extraction-178670.html
<![CDATA[News - Neometals has vision for new type of battery anode ]]> http://www.proactiveinvestors.com.au/companies/news/178610/neometals-has-vision-for-new-type-of-battery-anode-178610.html Neometals (ASX:NMT) has received results from lithium battery cycle testing that demonstrates superior performances characteristics of its lithium titanate anode material.

The company engaged a leading U.S. test facility to commence 100‐cycle cycle testing of coin cell batteries using lithium titanate anode material made by the company at the CSIRO.

Lithium titanate is a leading anode material, which can replace graphite.

Its primary advantage over graphite is the surface area of the anode of lithium titanate being around 100 square metres per gram in contrast to typically 3 square metres for graphite. 

The enlarged surface area enables electrons to enter and leave the anode much more rapidly, leading to ultrafast recharging, enhanced battery life and enhanced safety performance.

The conceptual plan is to develop a process producing a superior lithium titanate anode material from feedstocks generated from the Neometals’ captive resources.

Subject to technical opinion Neometals will seek protection of intellectual property and commence discussions with potential commercialisation partners.

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Thu, 01 Jun 2017 14:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/178610/neometals-has-vision-for-new-type-of-battery-anode-178610.html
<![CDATA[News - Neometals has now bought back $4 million in stock ]]> http://www.proactiveinvestors.com.au/companies/news/178519/neometals-has-now-bought-back-4-million-in-stock-178519.html Neometals (ASX:NMT) continues its on-market buy-back of stock, and has now spent $3.94 million acquiring just under 14 million shares.

This marks the half-way point under the program, which allows for a maximum of 28.15 million to be purchased.

Neometals has positioned itself to have conservative exposure to the energy storage revolution.

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Wed, 31 May 2017 11:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/178519/neometals-has-now-bought-back-4-million-in-stock-178519.html
<![CDATA[News - Neometals on-market buyback has snapped up nearly 12 million shares ]]> http://www.proactiveinvestors.com.au/companies/news/178086/neometals-on-market-buyback-has-snapped-up-nearly-12-million-shares-178086.html
Neometals (ASX:NMT) continues its on-market buyback of shares at pace, and has now purchased circa 11.9 million shares for a consideration of $3.4 million.

The program allows for a total purchase of 28.1 million shares, and therefore 16.3 million can still be bought.

Neometals has positioned itself to have conservative exposure to the energy storage revolution.

The company’s core focus commodities are lithium and titanium.

Neometals has three lithium exposures – 1) a 13.8% interest in the Mount Marion Lithium Project which is currently in a sale process; 2) a 70% interest in the ELi® lithium hydroxide processing technology; and 3) a 50% ownership in the lithium battery recycling technology.

The company has two titanium interests being the wholly-owned Barrambie Titanium Project and the Neomet titanium processing technology.

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Mon, 22 May 2017 09:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/178086/neometals-on-market-buyback-has-snapped-up-nearly-12-million-shares-178086.html
<![CDATA[News - Neometals keeping leveraged to energy storage revolution ]]> http://www.proactiveinvestors.com.au/companies/news/177758/neometals-keeping-leveraged-to-energy-storage-revolution-177758.html Neometals (ASX:NMT) plans to keep itself exposed to energy storage given global lithium-ion battery capacity is expected to increase by 6x from 2016 to 2020.

The company’s core focus commodities are lithium and titanium.

Neometals has three lithium exposures – 1) a 13.8% interest in the Mount Marion Lithium Project which is currently in a sale process; 2) a 70% interest in the ELi® lithium hydroxide processing technology; and 3) a 50% ownership in the lithium battery recycling technology.

The company has two titanium exposures being the 100% owned Barrambie Titanium Project and the Neomet titanium processing technology.

The focus for FY17 includes:

- Sale process for 13.8% stake at Mount Marion;
- Advancing ELi® lithium hydroxide processing plant project;
- Fast-tracking evaluation of recycling process to recover lithium/cobalt/nickel from lithium-ion batteries; and
- Building royalty portfolio from commercialisation of Neomet process with Sedgman and Andritz.

Most recently, Neometals resolved build a pilot plant in Canada to accelerate the commercialisation of its technology to recycle lithium ion batteries.

The scoping study estimated operating cost of US$4.45 per pound contained cobalt, leaving a significant margin compared with the current spot prices of circaUS$24.50 per pound.

Agreements have been executed to construct the pilot-scale hydrometallurgical plant in Montreal with the plant expected to be operational in July.

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Mon, 15 May 2017 11:30:00 +1000 http://www.proactiveinvestors.com.au/companies/news/177758/neometals-keeping-leveraged-to-energy-storage-revolution-177758.html
<![CDATA[News - Neometals surpasses $2 million spend in on-market buy-back ]]> http://www.proactiveinvestors.com.au/companies/news/177468/neometals-surpasses-2-million-spend-in-on-market-buy-back-177468.html Neometals (ASX:NMT) has now purchased over 8 million of its own shares for close to $2.2 million, as the company continues its on-market buying program.

In total Neometals can purchase 28.1 million shares under the program, allowing for the potential of circa 20 million more to be bought.

Earlier in the week the company revealed a strategy to build a pilot plant in Canada to accelerate the commercialisation of its technology to recycle lithium ion batteries to recover high value materials such as cobalt.

The scoping study estimated operating cost of US$4.45 per pound contained cobalt, leaving a significant margin compared with the current spot prices of circaUS$24.50 per pound.

Agreements have been executed to construct the pilot-scale hydrometallurgical plant in Montreal with the plant expected to be operational in July.

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Tue, 09 May 2017 09:30:00 +1000 http://www.proactiveinvestors.com.au/companies/news/177468/neometals-surpasses-2-million-spend-in-on-market-buy-back-177468.html
<![CDATA[News - Neometals to build cobalt recovery plant in Canada ]]> http://www.proactiveinvestors.com.au/companies/news/177407/neometals-to-build-cobalt-recovery-plant-in-canada-177407.html Neometals (ASX:NMT) will build a pilot plant in Canada to accelerate the commercialisation of its technology to recycle lithium ion batteries to recover high value materials such as cobalt.

The scoping study estimated operating cost of US$4.45 per pound contained cobalt, leaving a significant margin compared with the current spot prices of circaUS$24.50 per pound.

Agreements have been executed to construct the pilot-scale hydrometallurgical plant in Montreal with the plant expected to be operational in July.

Chris Reed, managing director, commented: “With the Mt Marion Lithium Project successfully in production, Neometals’ will accelerate the commercialisation of this environmentally and ethically responsible, end-of-life solution for lithium battery recycling.

“We will apply our knowledge and technology to recover and re-use lithium battery materials and create a more sustainable, circular sourcing solution for potential partners.”


Scoping study highlights

Neometals has co-developed a technology to economically recover high-value cobalt (99.2% recovery) as a material that can be re-cycled within the battery manufacturing chain.

Agreements have been executed to construct the pilot-scale hydrometallurgical plant at Neometals’ Montreal laboratory.

The plant, which is anticipated to be operational in July, will complete continuous test work at a rate of 100 kilograms per day of batteries, testing the recovery of high-purity cobalt, lithium, nickel and other base metals from lithium batteries typically used in the electric vehicles.

Details from the previously completed scoping study includes:

- Total capital cost: US$4.5 million;
- Life of plant: 10 years;
- Life of plant revenue: US$233 million;
- Average net operation cost: US$4.45 per pound cobalt or US$9,852 per tonne;
- Pre-tax cash flow: US$144 million;
- Pre-tax net present value: US$84 million; and
- Payback period: <1 year.


Commercialisation timeline

Neometals’ commercialisation plan is as follows:

- Pilot plant construction (May-July 2017);
- Commercial plant engineering cost study (July-December 2017);
- Commercial plant design and procurement (January-March 2018); and
- Commercial plant fabrication and construction (March-October 2018).

Phases after the pilot plant construction are subject to board approval and other requirements.


Analysis


The decision to build a pilot plant in Montreal marks an important step for Neometals as it progresses its strategy to diversify into the downstream lithium battery material supply chain.

The results from the previous test work and study gives Neometals leverage to a new commodity in cobalt, which is experiencing favourable supply-demand market dynamics.

The cobalt supply chain is under some stress due to the rapid increase in demand from battery manufacturing and a supply chain that is dominated by co‐production and high sovereign risk resource locations.

Currently less than 5% of used lithium‐ion batteries are recycled as disposal is typically either paid‐for recycling or landfill.

Given the current prices of cobalt and the outlook for future supply being outweighed by demand, Neometals has the opportunity to cash in on this favourable cobalt market.

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Mon, 08 May 2017 12:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/177407/neometals-to-build-cobalt-recovery-plant-in-canada-177407.html
<![CDATA[News - Neometals on-market buy-back passes $1 million mark ]]> http://www.proactiveinvestors.com.au/companies/news/176957/neometals-on-market-buy-back-passes-1-million-mark-176957.html Neometals (ASX:NMT) continues to buy-back large blocks of its own shares, and yesterday snapped up another 574,000 for circa $183,000.

The company has previously purchased 2.6 million shares for $820,000.

That brings to total purchased to circa 3.1 million for $1,006,000.

The maximum that can be bought back is 28.15 million.

Earlier in the week Neometals outlined that it is in discussions with interested third parties for the sale of the company's interest in the Mt Marion Lithium Project.

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Thu, 27 Apr 2017 10:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/176957/neometals-on-market-buy-back-passes-1-million-mark-176957.html
<![CDATA[News - Neometals updates on sale of interest in Mt Marion Lithium Project ]]> http://www.proactiveinvestors.com.au/companies/news/176883/neometals-updates-on-sale-of-interest-in-mt-marion-lithium-project-176883.html Neometals (ASX:NMT) has provided an update on the sale of the company's interest in the Mt Marion Lithium Project.

Neometals outlined on 7th April 2017 that it had issued an offer by way of notice of sale to its joint venture partners of all its remaining 13.8% interest in Reed Industrial Minerals Pty Ltd (RIM), the holder of the Mt Marion Lithium Project, for a sale price of US$96,001,080.

Today Neometals has said that neither of its joint ventures in RIM have accepted that offer within the offer period in the terms of the pre‐emptive rights procedures under the Shareholders Agreement in respect of RIM.

As neither joint venturer has exercised their rights, Neometals is now entitled within the next sixty days to dispose of its equity interest in RIM to a third party on terms no less favourable to Neometals than those offered to its joint venture partners.

Neometals is now in discussions with interested third parties and will advise the market of any material developments.

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Wed, 26 Apr 2017 11:30:00 +1000 http://www.proactiveinvestors.com.au/companies/news/176883/neometals-updates-on-sale-of-interest-in-mt-marion-lithium-project-176883.html
<![CDATA[News - Neometals snaps up another 500,000 shares on-market ]]> http://www.proactiveinvestors.com.au/companies/news/176564/neometals-snaps-up-another-500000-shares-on-market-176564.html Neometals (ASX:NMT) continues to buy-back its own shares on-market, and yesterday snapped up another 500,000 for a consideration of $163,250, or $0.325 to $0.33 per share.

Under the program, Neometals can buy back up to 28.1 million shares, and has so far purchased circa 1.9 million on these.

Recently the company outlined that it is proposing to sell its 13.8% stake in the operating Mt Marion Lithium Project.

The company gave notice to its partners, which gives them 30 days to decide whether to exercise their pre‐emptive right to buy Neometals’ shares at the nominated price of $US96 million.

If there is no exercise of those rights, then Neometals is able to offer the shares to third parties.

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Wed, 19 Apr 2017 13:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/176564/neometals-snaps-up-another-500000-shares-on-market-176564.html
<![CDATA[News - Neometals buys back shares on-market ]]> http://www.proactiveinvestors.com.au/companies/news/176403/neometals-buys-back-shares-on-market-176403.html Neometals (ASX:NMT) is undertaking a share buy-back program, and commenced yesterday with the purchase of 1,263,671 shares for just over $400,000, or $0.32 per share.

Under the program Neometals can purchase 28.1 million shares.

Last week the company outlined that it is proposing to sell its 13.8% stake in the operating Mt Marion Lithium Project.

The company gave notice to its joint venturers, which gives them 30 days to decide whether to exercise their pre‐emptive right to buy Neometals’ shares at the nominated price of $US96 million.

If there is no exercise of those rights, then Neometals is able to offer the shares to third parties.

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Thu, 13 Apr 2017 08:30:00 +1000 http://www.proactiveinvestors.com.au/companies/news/176403/neometals-buys-back-shares-on-market-176403.html
<![CDATA[News - Neometals makes move to cash in Mt Marion lithium ]]> http://www.proactiveinvestors.com.au/companies/news/176114/neometals-makes-move-to-cash-in-mt-marion-lithium-176114.html Neometals (ASX:NMT) is proposing to sell its 13.8% stake in the operating Mt Marion Lithium Project located in Western Australia for US$96 million.

The company gave notice to its joint venturers, which gives them 30 days to decide whether to exercise their pre‐emptive right to buy Neometals’ shares at the nominated price of $US96 million.

If there is no exercise of those rights, then Neometals is able to offer the shares to third parties.

Neometals gave notice on 23 March 2017 and understands that one of the joint ventures is in the process of convening a meeting to seek shareholder approval to exercise the right. 

The divesture provides Neometals with the ability to re‐direct its capital and energies to higher margin downstream opportunities, as well as its titanium assets.


Background

The Mt Marion Lithium Project is owned by:

- 43.1% Mineral Resources (ASX:MIN);
- 43.1% Ganfeng Lithium; and
- 13.8% Neometals.

Minerals Resources is the project operator and Australia’s largest contract minerals processor.

Ganfeng is China’s leading, most profitable lithium producer and has secured a life-of-mine, take-or-pay off-take agreement for Mt Marion.


Reflecting on the value at Mt Marion

To date, before this currently proposed final sell‐down of Mt Marion equity, Neometals has realised US$66.55 million (~A$88 million) in cash.

When combined with a successful divestment, this will result in total sale proceeds of US$162.55 million (~A$213 million) on an investment with a historical cost of circa A$3 million.

Neometals has already distributed A$22.5 million of that return to shareholders by way of dividends in 2016.


Post-sale picture

Assuming acceptance and timely completion by the remaining Mt Marion partners of their pre‐emptive opportunity to acquire Neometals’ residual 13.8% equity interest, Neometals’ projected unrestricted cash balance will be ~A$184 million.

Neometals also has listed investments of circa A$10 million. 

Accordingly, the company has commenced a review of its strategic funding requirements and capital management initiatives, including its recently renewed on‐market buyback program and other potential shareholder return initiatives. 

Neometals will have the opportunity to focus on its:

- ELi Process: lithium processing technology for lithium hydroxide conversion;
- Lithium battery recycling: Recovers cobalt from old lithium batteries;
- Barrambie Titanium Project: Second highest grade titanium deposit globally; and
- Neomet Process: acid recovery processing technology.

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Fri, 07 Apr 2017 09:30:00 +1000 http://www.proactiveinvestors.com.au/companies/news/176114/neometals-makes-move-to-cash-in-mt-marion-lithium-176114.html
<![CDATA[News - Neometals sends second lithium shipment ]]> http://www.proactiveinvestors.com.au/companies/news/174868/neometals-sends-second-lithium-shipment-174868.html Neometals (ASX:NMT) and its partners have confirmed the departure of a second lithium concentrate shipment from the Mt Marion Lithium Project in Western Australia.

The 16,662 tonne shipment containing concentrate at +6% and +4% lithium oxide departed from the Port of Kwinana on 14 March, 2017 enroute to Ganfeng’s receiving facility at Zhenjiang Port, China.

This shipment follows the maiden shipment of 15,000 tonnes which departed on 6 February, 2017.

The next shipment of 18,000 tonnes of concentrate is expected to be loaded early April.

The Mt Marion Lithium Project is owned by:

- 43.1% Mineral Resources (ASX:MIN);
- 43.1% Ganfeng Lithium; and
- 13.8% Neometals.

Minerals Resources is the project operator and Australia’s largest contract minerals processor.

Ganfeng is China’s leading, most profitable lithium producer and has secured a life-of-mine, take-or-pay off-take agreement for Mt Marion.

Neometals’ strategy is to grow market cap by maximising return from existing operations, increasing margins via higher value downstream products and developing growth options.

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Thu, 16 Mar 2017 08:30:00 +1100 http://www.proactiveinvestors.com.au/companies/news/174868/neometals-sends-second-lithium-shipment-174868.html
<![CDATA[News - Neometals eyes cash war-chest as way to tighten register ]]> http://www.proactiveinvestors.com.au/companies/news/173577/neometals-eyes-cash-war-chest-as-way-to-tighten-register-173577.html Neometals (ASX:NMT) has outlined a proposal to initiate an on‐market buy-back of ordinary shares.

Neometals could purchase up to a maximum of 5% of the company’s shares, and will not buy-back more than A$5 million worth of shares over 12 months.

No shares were acquired under the 2016 buy-back.

If the company proceeds, then this will tighten the share register and provide a potential catalyst for a higher share price.

The reason for this is that if the company's maintains its market valuation, but has fewer shares, then each share needs to be worth more.

The company is focused on lithium, but recently added cobalt exposure to its portfolio.

 

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Thu, 23 Feb 2017 13:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/173577/neometals-eyes-cash-war-chest-as-way-to-tighten-register-173577.html
<![CDATA[News - Neometals completes valuable cobalt extraction test work in Canada ]]> http://www.proactiveinvestors.com.au/companies/news/173427/neometals-completes-valuable-cobalt-extraction-test-work-in-canada-173427.html Neometals (ASX:NMT) has completed a proof of scale study aimed at recycling batteries from consumer electronic devices such as laptops and mobile phones.

The test work was completed at facilities in Montreal, Canada, where the co‐developed, proprietary process aimed to recover cobalt from recycled lithium ion batteries.

The completed preliminary engineering cost study supports business case to accelerate commercialisation of the technology.

The estimated cash cost for processing is US$4.45 per pound of cobalt, which has a current spot price of US$20 per pound.

Neometals owns a 13.8% stake in the recently producing Mt Marion Lithium Project, which recently scheduled a second lithium concentrate shipment for mid‐March.

Chris Reed, managing director, commented: “With the Mt Marion Lithium Project successfully in production, Neometals’ can extend its strategic focus to opportunities in the higher margin, downstream opportunities in the lithium value chain where we can apply our knowledge and technology portfolio.”


Test work details

Neometals completed laboratory scale test work on 100 kilograms of spent lithium‐ion laptop and phone batteries containing an average of 19.8% cobalt.

The company engaged Sedgman to complete an engineering cost study on a small scale plant using the technology.

Results from the completed test work have indicated strong potential for a viable processing operation via a modular plant to initially recover saleable cobalt product from used lithium‐ion batteries.

Details include:

- Total capital cost: US$4.5 million;
- Life of plant: 10 years;
- Life of plant revenue: US$233 million;
- Average net operation cost: US$4.45 per pound cobalt or US$9,852 per tonne;
- Pre-tax cash flow: US$144 million;
- Pre-tax net present value: US$84 million; and
- Payback period: <1 year.


Analysis

The successful results from the test work and study gives Neometals leverage to a new commodity in cobalt, which is experiencing favourable supply-demand market dynamics.

The cobalt supply chain is under some stress due to the rapid increase in demand from battery manufacturing and a supply chain that is dominated by co‐production and high sovereign risk resource locations.

Currently less than 5% of used lithium‐ion batteries are recycled as disposal is typically either paid‐for recycling or landfill.

Immediate plans involve investing in a continuous operation, pilot‐scale hydrometallurgical plant at the company’s Montreal laboratory to accelerate the evaluation of the recovery of high‐purity cobalt and future recovery of lithium, nickel, copper and aluminium.

Subject to the success of the mini‐pilot/pilot scale test work, Neometals intends to proceed with a feasibility study.

The proposed work plan will be funded internally, with an expected date of completion in December 2017.

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Tue, 21 Feb 2017 11:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/173427/neometals-completes-valuable-cobalt-extraction-test-work-in-canada-173427.html
<![CDATA[News - Neometals prepares second lithium shipment, ramp-up on track ]]> http://www.proactiveinvestors.com.au/companies/news/173292/neometals-prepares-second-lithium-shipment-ramp-up-on-track-173292.html Neometals (ASX:NMT) and its partners have scheduled a second lithium concentrate shipment for mid‐March from the Mt Marion Lithium Project in Western Australia.

The shipment has an anticipated tonnage of circa 15,000 tonnes with product grades of +6 and +4% lithium oxide.

This follows the inaugural shipment earlier this month.

Furthermore, The mine’s shareholders, Ganfeng Lithium, Mineral Resources (ASX:MIN) and Neometals have finalised negotiations regarding off-take arrangements and mining services.

Execution of formal documentation is expected by the end February 2017,


Operations update

The plant has successfully reached throughput at rates of 280 tonnes per hour and recoveries and product grades are in line with the ramp‐up plan. 

The construction of the fines flotation circuit is expected to be completed by the end of February 2017 with commissioning scheduled to commence immediately.   

Formal documentation

Execution of formal documentation is expected by the end of February regarding:

Off-take Arrangements

- Fix the 6% lithium oxide pricing (US$750 per dry metric tonne, CFR China) for shipments departing before 30 June 2017;
- Pricing of subsequent shipments is to be set on a 6‐month basis by a formula based on a weighted average price of Chinese imports of lithium carbonate and lithium hydroxide (based on published import statistics) plus a floor price consistent with original off-take agreement; and
- Expand the scope of the off-take agreements for the Mt Marion Project to 400,000 tonnes per annum of spodumene concentrates to include any sub‐6% lithium oxide production.

Mining Services Arrangements

- To vary the existing Mining Services Agreement to cover production of coarse and fine sub‐6% lithium oxide products in line with above off-take arrangements;
- Subject to agreement on final commercial pricing, to further vary the Mining Services Agreement to upgrade sub‐6% lithium oxide products to all +6% lithium oxide product, resulting in 400,000 tonnes per annum of +6% lithium oxide concentrates. Mineral Resources have ordered long lead items.    It is expected that construction will commence in March 2017 without negative impact on production and with transition to all 6% lithium oxide production by the end of CY2017.


Background

The Mt Marion Lithium Project is owned by:

- 43.1% Mineral Resources (ASX:MIN);
- 43.1% Ganfeng Lithium; and
- 13.8% Neometals.

Minerals Resources is the project operator and Australia’s largest contract minerals processor.

Ganfeng is China’s leading, most profitable lithium producer and has secured a life-of-mine, take-or-pay off-take agreement for Mt Marion.

Neometals’ strategy is to grow market cap by maximising return from existing operations, increasing margins via higher value downstream products and developing growth options.

The share price has increased 75% over the past 12 months, currently trading at $0.34.

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Fri, 17 Feb 2017 10:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/173292/neometals-prepares-second-lithium-shipment-ramp-up-on-track-173292.html
<![CDATA[News - Mineral Resources, Neometals and Ganfeng advise of inaugural shipment of lithium ]]> http://www.proactiveinvestors.com.au/companies/news/172748/mineral-resources-neometals-and-ganfeng-advise-of-inaugural-shipment-of-lithium-172748.html Mineral Resources (ASX:MIN), Neometals (ASX:NMT) and Ganfeng Lithium Co. Ltd have advised of the inaugural shipment of lithium concentrates produced at the Mt Marion Lithium Project in Western Australia.

The first shipment of 15,000 tonnes of lithium concentrates have been loaded onto the MV Pacific Venus at the Port of Kwinana and last night departed on its journey to the Zhenjiang Port, China, where it will deliver the product to Ganfeng.

This first shipment follows the successful commissioning and continued ramp up of production from Mt Marion, which is forecast to produce 400,000 tonnes per annum at full capacity.

Chris Reed, managing director for Neometals, commented:

"The successful first shipment from Mt Marion is a significant milestone for Neometals and our project partners, and we are proud to have been part of progressing the project from final investment decision to first shipment within 18 months."

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Tue, 07 Feb 2017 15:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/172748/mineral-resources-neometals-and-ganfeng-advise-of-inaugural-shipment-of-lithium-172748.html