Proactiveinvestors Australia Neometals Ltd https://www.proactiveinvestors.com.au Proactiveinvestors Australia Neometals Ltd RSS feed en Tue, 25 Jun 2019 00:10:25 +1000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Neometals sees zeolite as way to boost lithium refinery project economics ]]> https://www.proactiveinvestors.com.au/companies/news/222623/neometals-sees-zeolite-as-way-to-boost-lithium-refinery-project-economics-222623.html Neometals Ltd (ASX:NMT) has received results from analysis on several of its zeolite products against leading commercial counterparts in the market.

Importantly, the testwork results showed that Neometals’ product quality is comparable to industry leading zeolite products.

The success of the bench scale testwork has justified progressing to the next phase of development, demonstrating the technology at a pilot scale, set to commence in the September quarter.

Assuming a successful pilot test‐work program, Neometals plans to use the data derived from the pilot plant to commence a class 3 engineering cost and feasibility study.

READ: Neometals signs binding MoU to consider developing India’s first lithium refinery

Neometals’ managing director Chris Reed said: “The unequivocal demonstration of the ability to convert lithium refinery leach residue waste into high value zeolite products further demonstrates the company’s ability to identify and develop an opportunity to improve the economics and environmental sustainability of our downstream lithium chemical strategy.

“We look forward to announcing the expected capital and operating costs when they become available.”

Zeolite could improve refinery project economics

Zeolite materials are produced as both naturally occurring and synthetic materials.

Synthetic zeolites such as those produced by Neometals’ process at bench‐scale, are typically used in more demanding industrial applications such as molecular sieves for natural gas dehydration, air and hydrocarbon purification.

The initial driver for the development of zeolite from lithium refinery leach residue was to improve project economics for a refinery development by lowering waste disposal costs and increasing co-product revenue.

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Mon, 24 Jun 2019 11:29:00 +1000 https://www.proactiveinvestors.com.au/companies/news/222623/neometals-sees-zeolite-as-way-to-boost-lithium-refinery-project-economics-222623.html
<![CDATA[News - Neometals signs binding MoU to consider developing India’s first lithium refinery ]]> https://www.proactiveinvestors.com.au/companies/news/222453/neometals-signs-binding-mou-to-consider-developing-indias-first-lithium-refinery-222453.html Neometals Ltd (ASX:NMT) has entered into a binding memorandum of understanding (MoU) to jointly fund the evaluation of developing the first lithium refinery in India.

The MoU was signed with Manikaran, India’s third-largest power trading and diversified renewable energy company.

Upon completion of the feasibility analysis, and subject to agreement on terms, a final investment decision will be considered for a 50:50 joint venture to progress and develop the lithium refinery.

Notably, Neometals plans to contribute its life-of-mine off take option volume of up to 57,000 tonnes per annum of 6% spodumene concentrate.

READ: Neometals completes class-five scoping study on lithium-ion battery recycling technology in Canadian pilot plant

Neometals managing director Chris Reed said: “Neometals and Manikaran hold a common belief in the future demand for lithium driven by the electrification of transport and storage ofrenewable energy.

“Given India’s growth projections for electric vehicle and lithium battery manufacturing capacity, this opportunity to partner in India’s first domestic lithium development and potentially realise value from downstream processing our offtake option from Mt Marion is compelling.

“Manikaran has significant on-the-ground presence and commercial standing in India to assist with site location, regulations, access to finance, utilities and reagents, and is part of a group of companies with broad competencies that enhance their value proposition as partners.”

READ: Neometals DFS reveals $430 million vanadium operation

Neometals recently received the results from its definitive feasibility study (DFS) on the Barrambie Vanadium-Titanium-Magnetite Project in Western Australia.

The study confirmed primary production of vanadium pentoxide and ferrovanadium from vanadium-rich Central Bands to be technically feasible and economically viable.

The 15-year operation has a capital cost of $692 million and would generate over $2.5 billion in EBITDA in total resulting in a pre-tax NPV of $430 million.

Notably, the DFS project economics don’t’ yet consider the impact of exploiting the contained titanium through a whole-of-deposit processing solution.

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Thu, 20 Jun 2019 09:53:00 +1000 https://www.proactiveinvestors.com.au/companies/news/222453/neometals-signs-binding-mou-to-consider-developing-indias-first-lithium-refinery-222453.html
<![CDATA[News - Neometals completes class-five scoping study on lithium-ion battery recycling technology in Canadian pilot plant ]]> https://www.proactiveinvestors.com.au/companies/news/221439/neometals-completes-class-five-scoping-study-on-lithium-ion-battery-recycling-technology-in-canadian-pilot-plant-221439.html Neometals Ltd (ASX:NMT) has completed the Association for Advancement of Cost Engineering (AACE) class-five scoping study on its lithium-ion battery recycling technology in its Canadian pilot plant.

Primero Group Ltd was engaged to complete the study which determined operating and capital costs based on the company’s bench-scale test work as well as the associated mass and energy balances prepared by Strategic Metallurgy Ltd.

Neometals is encouraged by the outcomes of the study which indicate robust economics.

The study supports Neometals’ strategy to target the growing need for sustainable recycling solutions as the worldwide adoption of LIBs continues to grow.

READ: Neometals DFS reveals $430 million vanadium operation

Neometals managing director Chris Reed said the company was pleased with the economic outcomes of the scoping study on the new flowsheet.

He said: “It is a credit to our project team and our consulting engineers – we have proved the efficacy of our process at the bench scale and continue to de-risk and optimise in the current pilot plant in Canada.

“We have invested in a true ‘recycling’ solution rather than base metal recovery process.

“It has been engineered for real world conditions and recovers multiple high-purity chemical products from an array of battery chemistries.

“We look forward to successfully completing the pilot plant test work in Canada to prove the technical feasibility and economic viability.

“In parallel we will accelerate our commercialisation discussions with major players in the global lithium battery supply chain.”

READ: Neometals declares partially franked dividend, cash levels remain high

The results from this study allows Neometals to advance commercial dialogues in parallel with preparations for detailed engineering and cost studies.

The study concluded that a 50-tonne per day battery feed was a more efficient scale for initial commercial operation.

It assumes a selling price of US$6,151 a tonne for cobalt sulphate, US$2,030 a tonne for copper sulphate, US$5,000 for lithium sulphate and US$3,298 for nickel sulphate.

Strong progress is also being made Neometals’ lithium-ion battery (LIB) pilot.

The company will use data and learnings from the pilot to estimate the cost to build and operate a commercial-scale recycling plant to a higher level of accuracy in an AACE class-three feasibility study.

The feasibility study is set to begin early in the 2019/2020 financial year.

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Tue, 04 Jun 2019 07:40:00 +1000 https://www.proactiveinvestors.com.au/companies/news/221439/neometals-completes-class-five-scoping-study-on-lithium-ion-battery-recycling-technology-in-canadian-pilot-plant-221439.html
<![CDATA[News - Neometals DFS reveals $430 million vanadium operation ]]> https://www.proactiveinvestors.com.au/companies/news/220729/neometals-dfs-reveals-430-million-vanadium-operation-220729.html Neometals Ltd (ASX:NMT) has received the results from its definitive feasibility study (DFS) on the Barrambie Vanadium-Titanium-Magnetite Project in Western Australia.

The revised study confirms primary production of vanadium pentoxide and ferrovanadium from vanadium-rich Central Bands to be technically feasible and economically viable.

The 15-year operation has a capital cost of $692 million and would generate over $2.5 billion in EBITDA in total resulting in a pre-tax NPV of $430 million.

Flow sheet to be evaluated

Forward work programs will focus on the pilot-scale evaluation of a conventional, commercially proven, hydrometallurgical flowsheet.

The process uses atmospheric acid leaching to recover titanium, vanadium and iron products in combination with conventional and proprietary acid regeneration equipment.

Notably, the DFS project economics don’t’ yet consider the impact of exploiting the contained titanium through a whole-of-deposit processing solution.

The optimised flowsheet will then form the basis of the final Neometals Barrambie evaluation, a FEED study.

READ: Neometals declares partially franked dividend, cash levels remain high

Earlier this month, Neometals flagged it would pay out around $11 million as a dividend, which will leave it well-funded with a cash balance of $116 million.

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Wed, 22 May 2019 09:34:00 +1000 https://www.proactiveinvestors.com.au/companies/news/220729/neometals-dfs-reveals-430-million-vanadium-operation-220729.html
<![CDATA[News - Neometals declares partially franked dividend, cash levels remain high ]]> https://www.proactiveinvestors.com.au/companies/news/219511/neometals-declares-partially-franked-dividend-cash-levels-remain-high-219511.html Neometals Ltd (ASX:NMT) has declared a dividend of 2 cents per share, of which 1 cent, or half the dividend, will be franked.

This will result in the company paying out around $11 million, which will leave it with a cash balance of $116 million.

In order to receive the dividend shareholders must hold shares in Neometals on the record date of 8 May 2019 being next Wednesday.

READ: Neometals boosts cash balance to $131 million, multiple valuation catalysts ahead

The main reason for Neometals’ healthy cash balance is the divestment of its interest in the Mt Marion Ltihium Project for $103.8 million.

As part of the sale agreement, Neometals has secured a binding life-of-mine annual offtake option for 57,000 tonnes a year of 6% spodumene concentrate from the mine.

The option provides Neometals with potential feedstock for downstream processing into higher-margin lithium chemicals.

Proactive caught up with the company’s managing director Chris Reed in late March 2019 for an update.

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Thu, 02 May 2019 08:22:00 +1000 https://www.proactiveinvestors.com.au/companies/news/219511/neometals-declares-partially-franked-dividend-cash-levels-remain-high-219511.html
<![CDATA[Media files - Neometals secures lithium offtake and potential feedstock from Mt Marion divestment ]]> https://www.proactiveinvestors.com.au/companies/stocktube/12740/neometals-secures-lithium-offtake-and-potential-feedstock-from-mt-marion-divestment-12740.html Wed, 27 Mar 2019 01:15:00 +1100 https://www.proactiveinvestors.com.au/companies/stocktube/12740/neometals-secures-lithium-offtake-and-potential-feedstock-from-mt-marion-divestment-12740.html <![CDATA[News - Neometals boosts cash balance to $131 million, multiple valuation catalysts ahead ]]> https://www.proactiveinvestors.com.au/companies/news/216697/neometals-boosts-cash-balance-to-131-million-multiple-valuation-catalysts-ahead-216697.html Neometals Ltd (ASX:NMT) has completed the $103.8 million sale of its 13.8% equity interest in the Mt Marion Lithium Project.

The sale increases the company’s cash balance to around $131 million plus $7 million in listed investments.

As part of the sale agreement, Neometals has secured a binding life-of-mine annual offtake option for 57,000 tonnes per annum of 6% spodumene concentrate from the mine.

Importantly, this option provides Neometals with potential feedstock for downstream processing into higher‐margin lithium chemicals.

READ: Neometals to see lithium batteries recycled while updating Barrambie DFS

The company’s development priorities are its Barrambie Vanadium Titanium Project, its lithium-ion battery recycling project, and its lithium downstream strategy.

Strong cash position provides options

The company’s core strategy remains focused on de‐risking and developing long-life projects with strong partners, and integrate down the value chain.

Neometals’ managing director Chris Reed said: “We will continue to take a very measured approach to capital allocation and the timing of investment decisions of multiple advanced projects in our portfolio.

“We are fortunate that despite challenging capital markets we retain significant flexibility and optionality with respect to the timing, quantum and structure of investment into the development of our portfolio of exciting growth projects.” 

Barrambie is the company’s flagship asset

The Barrambie project is one of the world’s biggest titanium and vanadium resources and remains a flagship project with Neometals targeting a  final investment decision (FID) in 2019.

An updated definitive feasibility study (DFS) for the development of a primary vanadium operation at Barrambie and updated  Ore Reserve estimate are due for release in April 2019. 

This will form the basis of the formal offtake,  partner and financing processes to be run in parallel with vendor test work, front‐end engineering and design studies and approval processes.

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Tue, 19 Mar 2019 11:10:00 +1100 https://www.proactiveinvestors.com.au/companies/news/216697/neometals-boosts-cash-balance-to-131-million-multiple-valuation-catalysts-ahead-216697.html
<![CDATA[News - Neometals in trading halt ahead of Mt Marion divestment announcement ]]> https://www.proactiveinvestors.com.au/companies/news/216596/neometals-in-trading-halt-ahead-of-mt-marion-divestment-announcement-216596.html Neometals Ltd (ASX:NMT) has been granted a trading halt with further news pending regarding the divestment of the Mt Marion project.

The trading halt will remain in place until the beginning of trading on Wednesday, March 20, 2019, or when an announcement is released to the market, whichever occurs earliest.

Earlier this month Neometals passed another milestone in the sale of its 13.8% stake in the WA lithium project with Chinese regulatory authorities approving the transaction.

READ: Neometals a step closer to completing sale of 13.8% stake in lithium project

Confirmation by Ganfeng of the Chinese regulatory approval follows the clearance from the Australian Foreign Investment Review Board (FIRB).

If all sale conditions are met, Neometals will receive $103.8 million in cash for the transaction at completion.

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Mon, 18 Mar 2019 13:31:00 +1100 https://www.proactiveinvestors.com.au/companies/news/216596/neometals-in-trading-halt-ahead-of-mt-marion-divestment-announcement-216596.html
<![CDATA[News - Neometals a step closer to completing sale of 13.8% stake in lithium project ]]> https://www.proactiveinvestors.com.au/companies/news/215582/neometals-a-step-closer-to-completing-sale-of-138-stake-in-lithium-project-215582.html Neometals Ltd (ASX:NMT) has passed another milestone in the sale of its 13.8% stake in the Mt Marion Lithium Project with Chinese regulatory authorities approving the transaction.

The sale involves Mt Marion project partners Ganfeng Lithium Co Ltd and Mineral Resources Limited (ASX:MIN).

Confirmation this week by Ganfeng of the Chinese regulatory approval follows the clearance from the Australian Foreign Investment Review Board (FIRB) received earlier this month.

If all sale conditions are met, Neometals will receive $103.8 million in cash for the transaction at completion.

READ: Neometals closer to completing $103.8 million sale of Mt Marion lithium interest

Parties to the sale are now dealing with all matters to progress to financial completion of the divestment of Neometals’ shareholding.

This includes formalising Neometals’ offtake option agreement and any appropriate adjustments to other ongoing Mt Marion contractual arrangements arising in connection with the divestment.

Life-of-mine offtake agreement

The sale agreement will see Neometals retain a life-of-mine annual offtake of 57,000 tonnes of spodumene concentrate.

READ: Neometals commissions first stage of battery recycling pilot plant

This will enable Neometals to pursue its downstream integration strategy involving the production of higher value lithium chemicals and capturing value from the recovery of critical metals, including lithium, from end-of-life lithium-ion battery recycling.

The strategy will be underpinned by certainty from proven feed supply.

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Fri, 01 Mar 2019 16:07:00 +1100 https://www.proactiveinvestors.com.au/companies/news/215582/neometals-a-step-closer-to-completing-sale-of-138-stake-in-lithium-project-215582.html
<![CDATA[News - Neometals to see lithium batteries recycled while updating Barrambie DFS ]]> https://www.proactiveinvestors.com.au/companies/news/214924/neometals-to-see-lithium-batteries-recycled-while-updating-barrambie-dfs-214924.html Neometals Ltd (ASX:NMT) specialises in developing industrial and advanced materials projects. It is run by a leadership team including founder Chris Reed, a minerals economist who has near on 20 years experience in the mining industry.

What does Neometals own?

The key asset for the company has become the Barrambie Vanadium-Titanium-Magnetite (VTM) Project in Western Australia.

Neometals is expecting to soon pocket $103.8 million from the sale of its 13.8% equity interest in its former focus, the Mt Marion lithium operation, to Ganfeng Lithium Co Ltd.

Mt Marion is 40 kilometres southwest of Kalgoorlie-Boulder in WA.

Chinese buyer Ganfeng has the green-light for the majority stake pick-up from Australia’s Foreign Investment Review Board (FIRB).

The contract is expected to be completed by February 28 after the buyer provides evidence of Chinese regulatory authority confirmations of its filings on the acquisition of the Mt Marion stake.

Ganfeng is already a 43.1% equal co-owner of the venture with Mineral Resources Limited (ASX:MIN, MinRes).

Neometals, which is focused on the lithium supply chain, will retain a life-of-mine annual offtake of 57,000 tonnes of spodumene concentrate.

The value of 6% spodumene concentrate shipments from Mt Marion for the March 2019 quarter is $US791.84 per dry metric tonne (dmt) for the March quarter.

Another lithium asset for the company is a lithium‐ion battery (LIB) recycling pilot plant at the SGS Lakefield facility in Canada.

Stage 1 has been successfully commissioned and will involve front-end preparation such as shredding, removal of metal casings and plastics.

A future stage 2 will feature hydrometallurgical processing and refining as Lakefield plant operators aim to produce high-purity battery materials for market qualification.

Neometals hopes to see recoveries of more than 90% of all battery materials using its flow-sheeted process.

The company’s now primary mining project, the Barrambie Vanadium-Titanium-Magnetite (VTM) Project in WA, falls under its titanium-vanadium business unit.

While the company had previously flagged it planned to spin out the project into separate titanium-vanadium company, Neometals is now updating a 2009 definitive feasibility study (DFS) for Barrambie project instead.

The updated DFS is expected in the June quarter and will examine staged development options including offshore processing of crushed ore, onsite production of a high-grade concentrate for sale, and refining to produce vanadium chemical products.

The new DFS will be JORC 2012-compliant and based on Neometals’ 2018 resource estimate for Barrambie.

Barrambie is one of the world’s highest-grade hard rock titanium deposits and hosts one of the largest vanadium projects globally.

It hosts 280.1 million tonnes grading 9.18% titanium dioxide and 0.44% vanadium pentoxide to an 80-metre vertical depth.

Contained titanium is greater than 25 million tonnes while contained vanadium exceeds 1.2 million tonnes.

A high-grade titanium subset features 53.6 million tonnes grading 21.17% titanium and 0.63% vanadium while a high-grade vanadium subset has 64.9 million tonnes grading 0.82% vanadium and 16.90% titanium.

Barrambie's Eastern Band has one of the highest grade hard-rock titanium deposits globally.

Neometals is planning to exploit the hard-rock titanium deposits by employing a proprietary acid leach process to produce high-purity titanium dioxide, iron oxide and vanadium pentoxide at lowest quartile costs.

Laboratory-scale test work in Canada previously confirmed high-purity (>99%) titanium dioxide could be precipitated selectively from a leach solution at recoveries greater than 90% from Barrambie ore.

Neometals is investigating direct shipping ore (DSO) being toll concentrated for sale to processors in China in parallel with the development of on-site concentration and refining operations.

The company had $30.3 million cash at the end of the December quarter and expects $4.3 million of cash outflows in the March fiscal quarter.

It has budgeted $895,000 for exploration and evaluation in the quarter and $1.3 million for research and development.

Inflection points

Chinese regulatory authority confirmations of consent to Ganfeng’s filings on its Foreign Investment Review Board-approved acquisition of LIT’s Mt Marion operation stake

Cash inflows of up to $103.8 million from the Mt Marion transaction

Positive results from the company’s updated DFS for the Barrambie project, expected in the June quarter

Strategic transactions or spin-out plans for Barrambie

Potential offtake agreements or commitments for Barrambie ore

Managing director Chris Reed confident of Barrambie’s value

“With strong vanadium pricing and end-users demanding secure supply of quality feedstocks from low-risk jurisdictions, Neometals is moving quickly to capitalise on this significant market opportunity (at Barrambie),” Neometals managing director Chris Reed said in November.

“Barrambie has played second fiddle in recent years to our lithium endeavours, however it is to our knowledge, the most advanced, undeveloped greenfields vanadium project globally.

“Our extensive historical exploration and evaluation works enable us to fast track an updated DFS. This step-wise approach is consistent with the staged development and de-risking strategy we employed to successfully develop our lithium business.”

Neometals managing director Chris Reed will deliver an 11.25am presentation this Thursday at the February 19-21 RIUExplorersConference 2019 at Esplanade Hotel Fremantle. You can find Neometals' information at Poster Board P.

Neometals chief operating officer Mike Tamlin will deliver an address on Friday at 11.30am on closing the supply chain loop at Roskill’s February 21-22 Lithium Mine to Market Australia 2019 event From Lithium Processing to Battery Production at Parmelia Hilton Perth Hotel.

 

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Tue, 19 Feb 2019 23:25:00 +1100 https://www.proactiveinvestors.com.au/companies/news/214924/neometals-to-see-lithium-batteries-recycled-while-updating-barrambie-dfs-214924.html
<![CDATA[News - Neometals commissions first stage of battery recycling pilot plant ]]> https://www.proactiveinvestors.com.au/companies/news/214393/neometals-commissions-first-stage-of-battery-recycling-pilot-plant-214393.html Neometals Ltd (ASX:NMT) has successfully commissioned stage 1 of its lithium‐ion battery (LIB) recycling pilot plant at the SGS Lakefield facility in Canada.

The facility is recognised worldwide for housing pre‐eminent expertise in the development, optimisation and piloting of mineral processing and chemical extraction processes.

Stage 1 refers to front-end preparation which includes shredding, removal of metal casings and plastics and stage 2 will feature hydrometallurgical processing and refining.

The plant aims to deliver high-purity battery materials for market qualification.

READ:  Neometals closer to completing $103.8 million sale of Mt Marion lithium interest

Neometals’ managing director Chris Reed said: “We are delighted to see our battery recycling project back on track.

“The commissioning of the pilot represents a significant milestone and marks the culmination of extensive research and development into a flow sheet to process multiple battery chemistries, from consumer electronics to electric vehicle applications.

“With ever-increasing volumes of commercial LIBs reaching their end of life, we are focussed on proving at scale, then qualifying our scale‐able and modular recycling solution with industry as early as possible.

“The pilot will serve as a showcase facility for potential partners as well as provide strong independent data for future engineering and financial studies.”

Indicative timeline for the Neometals LIB recycling program

A FEED study is planned to follow the pilot plant work and precede an economic feasibility study to give Neometals a commercial handle on 80% of costs at an early development stage.

Having commercially relevant data to commence commercial discussions is seen as the most prudent approach with potential partners.

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Tue, 12 Feb 2019 09:08:00 +1100 https://www.proactiveinvestors.com.au/companies/news/214393/neometals-commissions-first-stage-of-battery-recycling-pilot-plant-214393.html
<![CDATA[News - Neometals looks to have timed Mt Marion exit well ]]> https://www.proactiveinvestors.com.au/companies/news/214033/neometals-looks-to-have-timed-mt-marion-exit-well-214033.html Neometals Ltd (ASX:NMT) has timed the divestment of its 13.8% ownership in the Mt Marion Lithium Project well as product prices have taken a tumble.

The sale price for 6% spodumene concentrate shipments for the March 2019 quarter will be $US791.84 per dry metric tonne (dmt), compared with US$930.80/dmt for the prior quarter.

READ: Neometals closer to completing $103.8 million sale of Mt Marion lithium interest

Neometals is in the process of divesting its equity interest in the lithium operation for $103.8 million cash.

Earlier this week, purchaser Ganfeng Lithium Co Ltd advised that it had obtained clearance from the Australian Foreign Investment Review Board (FIRB) for its part of the transaction.

The only remaining condition to satisfy for the acquisition is confirmation by Chinese regulatory authorities of their acceptance of Ganfeng’s necessary filings.

The sale agreement with co-shareholders Ganfeng and Mineral Resources Limited (ASX:MIN) will see Neometals retain a life-of-mine annual offtake of 57,000 tonnes of spodumene concentrate.

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Wed, 06 Feb 2019 08:53:00 +1100 https://www.proactiveinvestors.com.au/companies/news/214033/neometals-looks-to-have-timed-mt-marion-exit-well-214033.html
<![CDATA[News - Neometals closer to completing $103.8 million sale of Mt Marion lithium interest ]]> https://www.proactiveinvestors.com.au/companies/news/213849/neometals-closer-to-completing-1038-million-sale-of-mt-marion-lithium-interest-213849.html Neometals Ltd (ASX:NMT) is moving towards completing the divestment of its 13.8% equity interest in the Mt Marion Lithium Project in Western Australia for $103.8 million in cash.

Purchaser Ganfeng Lithium Co Ltd advises that it has obtained clearance from the Australian Foreign Investment Review Board for its part of the transaction.

The only remaining condition to satisfy for the acquisition is confirmation by Chinese regulatory authorities of their acceptance of Ganfeng’s necessary filings.

READ: Neometals Ltd to gain $104 million by divesting Mt Marion lithium project interest

Ganfeng says that it is making good progress towards receiving confirmation regarding the principal filing with the Chinese National Development and Reform Commission.

Following this, Ganfeng will make the subsequent regulatory filings required to enable it to make the outbound completion payment to Neometals.

The parties have agreed that Ganfeng has until February 28, 2019, to satisfy the Chinese regulatory authorities’ condition. 

Completion of the divestment is due to occur within five business days of satisfaction of the condition.

Life-of-mine annual offtake

The sale agreement with co-shareholders Ganfeng and Mineral Resources Limited (ASX:MIN) will see Neometals retain a life-of-mine annual offtake of 57,000 tonnes of spodumene concentrate.

This will enable Neometals to pursue its downstream integration strategy involving the production of higher value lithium chemicals and capturing value from the recovery of critical metals, including lithium, from end-of-life lithium-ion battery recycling.

The strategy will be underpinned by certainty from proven feed supply.

The Mt Marion Lithium Project south of Kalgoorlie in WA.

READ: Neometals retains buy recommendation according to research report

It is intended that Neometals’ proposed lithium chemical refinery will process its future share of Mt Marion spodumene concentrates.

Neometals was approached by its co-shareholders to negotiate the divestment of its shareholding in Reed Industrial Minerals Pty Ltd (RIM), the joint venture company that owns Mt Marion.

Strong growth in valuation

The finalised price and terms for the divestment reflect strong growth in the valuation of RIM.

Neometals realised about $89 million in cash from its initial equity sales in RIM to Ganfeng and MinRes, which facilitated the development of what is now a globally significant lithium mine.

Total sale proceeds, including the latest divestment and Neometals’ October profit dividend, will total around $200 million on a Neometals investment with an historical cost of about $3 million.

READ: Neometals non-executive director shows confidence in downstream strategy through share purchase

Upon announcing the sale, Neometals managing director Chris Reed said: “We are delighted to have negotiated a strong outcome for Neometals shareholders.

“Neometals has realised significant further value from Mt Marion but of equal importance is the retention of our valuable offtake right which guarantees access to an industry-proven feed material for future lithium downstream processing.

 “We believe the timing is right to realise the value of Mt Marion and strengthen our balance sheet as we finalise multiple evaluation studies over downstream projects.

“The company is changing its focus and exposure away from upstream concentrates and pursuing a more holistic and integrated approach to the lithium battery thematic.”

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Mon, 04 Feb 2019 11:07:00 +1100 https://www.proactiveinvestors.com.au/companies/news/213849/neometals-closer-to-completing-1038-million-sale-of-mt-marion-lithium-interest-213849.html
<![CDATA[News - Neometals non-executive director shows confidence in downstream strategy through share purchase ]]> https://www.proactiveinvestors.com.au/companies/news/213221/neometals-non-executive-director-shows-confidence-in-downstream-strategy-through-share-purchase-213221.html Neometals Ltd (ASXNMT) non-executive director Jenny Purdie has purchased 44,248 ordinary fully paid shares in on-market trades.

The company is pursuing a downstream integration strategy which involves production of higher-value lithium chemicals and capturing value from end-of-life lithium-ion battery recycling.

READ: Neometals to gain $104 million by divesting Mt Marion Lithium Project interest

Neometals recently divested its 13.8% interest in the Mt Marion Lithium Project in Western Australia, pocketing about $104 million and retaining life-of-mine annual offtake of 57,000 tonnes of spodumene concentrate.

The sale agreement with co-shareholders Ganfeng Lithium Co Ltd and Mineral Resources Limited (ASX:MIN) will enable Neometals to focus on its downstream integration strategy.

It is intended that the Neometals’ proposed lithium chemical refinery will process it future share of Mt Marion concentrates.

The company is also progressing a definitive feasibility study update for its Barrambie vanadium-titanium-magnetite project in WA, which is proposed to be demerged into a new ASX-listed company.

READ: Neometals retains buy recommendation according to research report

Perth-based financial services company Euroz Limited retains its buy recommendation and valued Neometals at 51 cents in a report last November, more than twice its current share price of 22 cents.

Euroz said in the report that its valuation “provides for a mere $50 million nominal value for Barrambie yet there is a clear and substantial upside as the development parameters and timeframe are set-out.

The report notes that as the stock is trading below its 27-cent discounted cashflow valuation of the Mt Marion project, the proposed vanadium demerger will crystallise value for the Barrambie assets.  

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Thu, 24 Jan 2019 01:58:00 +1100 https://www.proactiveinvestors.com.au/companies/news/213221/neometals-non-executive-director-shows-confidence-in-downstream-strategy-through-share-purchase-213221.html
<![CDATA[News - Neometals Ltd to gain $104 million by divesting Mt Marion lithium project interest ]]> https://www.proactiveinvestors.com.au/companies/news/211697/neometals-ltd-to-gain-104-million-by-divesting-mt-marion-lithium-project-interest-211697.html Neometals Ltd (ASX:NMT) will pocket about $104 million from divesting its 13.8% interest in the Mt Marion Lithium Project in Western Australia while retaining life-of-mine annual offtake of 57,000 tonnes of spodumene concentrate.

The sale agreement with co-shareholders Ganfeng Lithium Co Ltd and Mineral Resources Limited (ASX:MIN) will enable Neometals to pursue its downstream integration strategy.

This involves production of higher value lithium chemicals and capturing value from recovery of critical metals, including lithium, from end of life lithium-ion battery recycling.

READ: Neometals retains buy recommendation according to research report

The strategy will be underpinned by certainty from proven feed supply.

It is intended that the company’s proposed lithium chemical refinery will process Neometals’ future share of Mt Marion spodumene concentrates.

Managing director Chris Reed said: “We are delighted to have negotiated a strong outcome for Neometals shareholders.

“Neometals has realised significant further value from Mt Marion but of equal importance is the retention of our valuable offtake right which guarantees access to an industry proven feed material for future lithium downstream processing.”

READ: Neometals and partners add 500,000 tonnes to lithium resource at Mt Marion

Shares are up almost 10% this morning to 23 cents.

Completion of the Mt Marion divestment is anticipated by the beginning of February 2019.

The agreement is subject to Ganfeng obtaining Australian Foreign Investment Review Board approval, making necessary filings with Chinese regulatory authorities and obtaining Chinese regulatory approvals.

“Timing is right”

Reed said: “We believe the timing is right to realise the value of Mt Marion and strengthen our balance sheet as we finalise multiple evaluation studies over downstream projects.

“The company is changing its focus and exposure away from upstream concentrates and pursuing a more holistic and integrated approach to the lithium battery thematic.”

Neometals was approached by its co-shareholders to negotiate the divestment of its shareholding in Reed Industrial Minerals Pty Ltd (RIM), the joint venture company that owns Mt Marion.

Strong growth in RIM valuation

The finalised price and terms for the divestment reflects strong growth in the valuation of RIM.

Neometals realised about $89 million in cash from its initial equity sales in RIM to Ganfeng and Mineral Resources, which facilitated the development of what is now a globally significant lithium mine.

Total sale proceeds, including the latest divestment and the Neometals October profit dividend will total around $200 million on a Neometals investment with an historical cost of about $3 million.

To date, Neometals has distributed approximately $34 million by way of shareholder dividends and share buy-backs.

At completion of the Mt Marion divestment, Neometals’ cash balance is expected to be around $130 million.

READ: Neometals begins feasibility study update for Barrambie as vanadium prices rise

Given the size and nature of the transaction, the proposed demerger of Neometals’ Barrambie Vanadium/Titanium Project will not advance until the board has an opportunity to fully consider the impacts of the Mt Marion divestment.

The board will also consider its approach with respect to capital management having regards to its future strategic needs and outlook.

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Mon, 24 Dec 2018 11:27:00 +1100 https://www.proactiveinvestors.com.au/companies/news/211697/neometals-ltd-to-gain-104-million-by-divesting-mt-marion-lithium-project-interest-211697.html
<![CDATA[News - Neometals retains buy recommendation according to research report ]]> https://www.proactiveinvestors.com.au/companies/news/210268/neometals-retains-buy-recommendation-according-to-research-report-210268.html Neometals Ltd (ASX:NMT) is carving a niche in the growing battery sector with a fully-integrated lithium battery chain and the soon-to-be-demerged Barrambie Titanium-Vanadium Project, according to a research report from Euroz Limited.

The Perth-based financial services company has valued Neometals at 51 cents, more than twice its current share price of 24 cents, and has retained its buy recommendation.

Euroz states in its report that its valuation “provides for a mere $50 million nominal value for Barrambie yet there is a clear and substantial upside as the development parameters and timeframe are set-out”.

The report notes that as the stock is trading below its 27-cent discounted cashflow valuation of Neometals’ Mt Marion Lithium Project, the proposed vanadium demerger will crystallise value for the Barrambie assets.

READ: Neometals begins feasibility study update for Barrambie as vanadium prices rise

The following is an extract from the report:

Investment case and analysis

Though there are several moving parts to the NMT strategy, it appears the efforts with respect to both Barrambie and the lithium-ion recycling project are verging on proof-of-concept milestones.

We are encouraged by the staged nature of [Barrambie’s] planned development, enabling initial cashflow from the low-risk open pit direct shipping ore (DSO) operation to fund studies seeking to de-risk and economically shore-up subsequent stages of beneficiation and/or project expansion.

This is a similar process currently at play with the lithium business which has to date proven to be both sensible and respectful of the capital structure and shareholder base.

It differentiates NMT from the number of small vanadium hopefuls looking to capitalise on strong commodity pricing by pursuing the well-trodden and perennial unsuccessful path of capitally-intensive high-risk downstream processing as stage I.

It is also complementary to the geology characteristics of the Barrambie ore body enabling stage I to run in parallel with advancement of stages II and III.

READ: Neometals reveals spodumene concentrate pricing for Mt Marion Lithium Operation

To date, the trial downstream processing of the Barrambie DSO has proven successful.

Potential offtake partners may be announced mid-June half 2019, ahead of the revised definitive feasibility study (DFS) end of financial year 2019.

We view that subject to completion of the demerger and requisite low capex financing for stage I, mining operations should start in early 2020.

READ: Neometals and partners add 500,000 tonnes to lithium resource at Mt Marion

On our analysis, the demerger makes sense, with the market discounting the lithium and treasury by the remaining NMT businesses.

Clearly, this combined with encouraging feedback from Chinese downstream titanium processors has driven the demerger decision.

Successful performance tests of the ore combined with positive outcomes on logistics studies will prompt commercial negotiations with the downstream with a view to commencing a DSO mining operation.

READ: Neometals adds two experienced directors ahead of demerger

The demerger is subject to final board approval, third-party consents and regulatory plus shareholder approvals … [and] expected to be completed in the March quarter of 2019.

NMT shareholders will receive shares in NewCo proportional to their existing NMT shareholders and should, subject to confirmatory Australian Taxation Office (ATO) class ruling, receive demerger tax relief.

NewCo will then seek admission to join the ASX.

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Thu, 29 Nov 2018 22:16:00 +1100 https://www.proactiveinvestors.com.au/companies/news/210268/neometals-retains-buy-recommendation-according-to-research-report-210268.html
<![CDATA[News - Neometals begins feasibility study update for Barrambie as vanadium prices rise ]]> https://www.proactiveinvestors.com.au/companies/news/209335/neometals-begins-feasibility-study-update-for-barrambie-as-vanadium-prices-rise-209335.html Neometals Ltd (ASX:NMT) has commenced an update to the 2009 Definitive Feasibility Study (DFS) for its Barrambie vanadium-titanium-magnetite (VTM) project in Western Australia.

The updated DFS will examine staged development options including offshore processing of crushed ore, onsite production of a high-grade concentrate for sale, and refining to produce vanadium chemical products.

The new DFS will be JORC 2012 compliant based on Neometals’ 2018 resource estimate for Barrambie.

READ: Neometals expands titanium vanadium resource at Barrambie

Barrambie is one of the world’s highest-grade hard rock titanium deposits and hosts one of the largest vanadium projects globally.

 

Optionality afforded by distinct high-grade zones and co-product streams has driven Neometals to consider a staged development approach.

The company is investigating direct shipping ore (DSO) being toll concentrated for sale to processors in China in parallel with the development of on-site concentration and refining operations.

Staged development strategy being evaluated in the updated DFS

Neometals has engaged a range of expert consultants to work on various parts of the updated DFS, which will collectively reveal the technical feasibility and economic viability of each individual stage of development with completion expected in the June quarter 2019.

In parallel, the company is continuing to advance discussions with potential offtake parties for the supply of ore, concentrates and chemical products.

Neometals managing director Chris Reed said: “With strong vanadium pricing and end-users demanding secure supply of quality feedstocks from low-risk jurisdictions, Neometals is moving quickly to capitalise on this significant market opportunity.

“Barrambie has played second fiddle in recent years to our lithium endeavours, however it is to our knowledge, the most advanced, undeveloped greenfields vanadium project globally.

“Our extensive historical exploration and evaluation works enable us to fast track an updated DFS.

“This step-wise approach is consistent with the staged development and de-risking strategy we employed to successfully develop our lithium business.”

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Fri, 16 Nov 2018 13:59:00 +1100 https://www.proactiveinvestors.com.au/companies/news/209335/neometals-begins-feasibility-study-update-for-barrambie-as-vanadium-prices-rise-209335.html
<![CDATA[News - Neometals reveals spodumene concentrate pricing for Mt Marion Lithium Operation ]]> https://www.proactiveinvestors.com.au/companies/news/209243/neometals-reveals-spodumene-concentrate-pricing-for-mt-marion-lithium-operation-209243.html Neometals Ltd (ASX:NMT) and its partners have revealed the sale price for the 6% spodumene concentrate from their Mt Marion Lithium Operation in Western Australia.

Mt Marion is operated by Reed Industrial Minerals (RIM) which is 13.8% owned by Neometals, 43.1% by Mineral Resources Ltd (ASX:MIN) and 43.1% by Ganfeng Lithium Co Ltd (SHE:002460).

The 6% spodumene concentrate prices for the two quarters post July 1, 2018 have been agreed as follows:

• For shipments departing July 1, 2018 to September 30, 2018: US$1,070.85 per dry metric tonne (CIF); and
• For shipments departing October 1, 2018 to December 31, 2018: US$930.80 per dry metric tonne (CIF).

The pricing was delayed for the July and October 2018 quarters because the publication of lithium carbonate and hydroxide pricing which RIM uses to calculate its 6% prices has been suspended since April 2018.

That suspension has now been lifted and the relevant lithium carbonate and hydroxide pricing data is now available.

READ: Neometals and partners add 500,000 tonnes to lithium resource at Mt Marion

RIM recently added 500,000 tonnes to the total resource at Mt Marion, which stands at 71.3 million tonnes at 1.37% lithium oxide.

The additional resource comes from a previously poorly defined pegmatite lens adjacent to the Area I pegmatite.

Strong quarterly performance

RIM achieved strong operational performance at Mt Marion in the September quarter with 111,000 wet metric tonnes (wmt) of concentrate produced and 91,000 wmt of concentrates shipped to Ganfeng.

Notably, there was a 9% increase in the higher grade (SC6) production quarter-on-quarter.

Production upgrade on track

Construction of additional flotation concentrator circuits to upgrade production to all SC6 concentrate is on track with commissioning expected to start in late 2018.

Steady state operation of the expansion and the achievement of all SC6 product is expected in the June quarter of 2019.

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Thu, 15 Nov 2018 15:11:00 +1100 https://www.proactiveinvestors.com.au/companies/news/209243/neometals-reveals-spodumene-concentrate-pricing-for-mt-marion-lithium-operation-209243.html
<![CDATA[News - Neometals and partners add 500,000 tonnes to lithium resource at Mt Marion ]]> https://www.proactiveinvestors.com.au/companies/news/208275/neometals-and-partners-add-500000-tonnes-to-lithium-resource-at-mt-marion-208275.html Neometals Ltd (ASX:NMT) and partners in the Mt Marion Lithium Operation in Western Australia have added 500,000 tonnes to the total resource, which stands at 71.3 million tonnes at 1.37% lithium oxide.

The additional resource comes from a previously poorly defined pegmatite lens adjacent to the Area I pegmatite.

Infill drilling has increased the size of this lens from 100,000 to 600,000 tonnes grading 1.31% lithium oxide and 0.68% iron above a cut‐off grade of 0.5% lithium oxide.

READ: Neometals pursuing multiple positions in the lithium supply chain

Mt Marion is operated by Reed Industrial Minerals (RIM) which is 13.8% owned by Neometals, 43.1% by Mineral Resources Limited (ASX:MIN) and 43.1% by Ganfeng Lithium Co Ltd (SHE:002460).

Updated resource estimate

The resource estimate as of October 21, 2016, was 77.8 million tonnes at 1.37% lithium oxide and 1.09% iron.

The updated resource prepared by Mineral Resources reflects mining depletion of 6.9 million tonnes to October 1, 2018, as well as the additional 500,000 tonnes of spodumene-bearing pegmatite.

Strong quarterly performance

RIM achieved strong operational performance at Mt Marion in the September quarter with 111,000 wet metric tonnes (wmt) of concentrate produced and 91,000 wmt of concentrates shipped to Ganfeng.

Of this production total, 77,000 tonnes was 6% lithium oxide and 34,000 tonnes was 4%.

There was a 9% increase in the higher grade (SC6) proportionate production quarter-on-quarter.

Total movement of 5.2 million wet tonnes was achieved during the quarter, providing consistent access to the ore body for processing.

Production upgrade on track

Construction of additional flotation concentrator circuits to upgrade production to all SC6 concentrate is on track with commissioning expected to start in late 2018.

Steady state operation of the expansion and the achievement of all SC6 product is expected in the June quarter of 2019.

READ: Neometals receives 50 cent price target from Euroz

Neometals has an integrated lithium supply strategy which incorporates mining and producing spodumene concentrate, refining spodumene to lithium compounds and recycling lithium batteries to recover battery metals.

This strategy includes the company’s lithium recovery technology along with a lithium refinery at Kalgoorlie to produce the greater value product of lithium hydroxide.

A FEED study for the refinery project is on track for completion in December 2018 while an offtake/partner selection process is yielding significant interest.

READ: Neometals adds two experienced directors ahead of demerger

The company recently outlined plans to demerge its titanium and vanadium assets, which will allow Neometals and the new company to separately focus on development of their respective integrated lithium and titanium-vanadium strategies.

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Thu, 01 Nov 2018 09:54:00 +1100 https://www.proactiveinvestors.com.au/companies/news/208275/neometals-and-partners-add-500000-tonnes-to-lithium-resource-at-mt-marion-208275.html
<![CDATA[News - Neometals adds two experienced directors ahead of demerger ]]> https://www.proactiveinvestors.com.au/companies/news/205811/neometals-adds-two-experienced-directors-ahead-of-demerger-205811.html Neometals Ltd (ASX:NMT) has appointed Dr Jennifer Purdie and Leslie Guthrie as non-executive directors to the company board.

Both Dr Purdie and Mr Guthrie are well‐credentialed professionals who bring extensive experience and skills to Neometals ahead of its plan to demerge its titanium-vanadium assets.

The Barrambie Titanium‐Vanadium Project will be spun out into a new ASX‐listed company referred to as NewCo.

READ: Neometals to demerge titanium-vanadium assets, focus on lithium

Dr Purdie is the CEO for Adani Australia Renewables and has had held roles in engineering, senior technology, strategy and operations for leading international mining companies.

Guthrie brings over 40 years of experience including high‐level roles within senior corporate management, project management and capital program development in the UK, Australia, North America and Asia.

READ: Neometals receives 50 cent price target from Euroz

Neometals’ chairman Steven Cole said: “We are delighted to welcome both Jenny and Les to the board of Neometals.

“Their respective skills and exceptional experience across numerous industries align well with our growth strategy, and our current stage of development across both the integrated lithium and titanium/vanadium business arms.

“With the Neometals NewCo demerger timeline advancing well, we are pleased to have a full complement of skills to draw from to finalise the Board composition for both companies.”

Shareholders will likely be voting on a number of resolutions related to the demerger at the annual general meeting (AGM) on 30 November 2018.

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Thu, 27 Sep 2018 13:04:00 +1000 https://www.proactiveinvestors.com.au/companies/news/205811/neometals-adds-two-experienced-directors-ahead-of-demerger-205811.html
<![CDATA[News - Neometals receives 50 cent price target from Euroz ]]> https://www.proactiveinvestors.com.au/companies/news/205480/neometals-receives-50-cent-price-target-from-euroz-205480.html Neometals Ltd (ASX:NMT) has received a Buy recommendation and price target of 50 cents per share from Euroz

With shares trading around 25 cents per share, the price target of 50 cents represents potential upside of 100%.

The company is building an integrated lithium business which began with its 13.8% interest in the operating Mt Marion Lithium Mine in Western Australia.

READ: Neometals pursuing multiple positions in the lithium supply chain

Recently, the company outlined plans to demerge its titanium and vanadium assets.

The spin-out will allow Neometals and the new company to separately focus on the development of their respective integrated lithium and titanium-vanadium strategies.

Euroz research report

The following is an extract from the Euroz report.

Comments

• NMT has announced its intention to demerge its Barrambie Titanium-Vanadium Project and associate non-lithium assets – completion set for Mar Q FY’19;

• This will provide for a vertically integrated lithium business to continue to evolve within the NMT structure whilst realise value for the emerging DSO Barrambie operation in the short to medium term;

• Longer term, NewCo will seek to advance potential development of downstream process flow sheets to produce high-purity vanadium and titanium chemicals;

• On our analysis, the demerger makes sense, with the market paying nothing for the remainder of the NMT business outside of its 13.8% stake in the Mt Marion lithium mine plus cash.

Market Sensitivity: Price Target: $0.50/sh - Valuation: $0.53/sh

Bull Scenario - $2.00/sh
NMT advances to commercialisation of Barambie DSO development and commercialisation of the LiOH processing plant and commercialisation of the Li-Ion Battery Recycling process.

Base Scenario - $0.50/sh
NMT advances to commercialisation of Barambie DSO development or commercialisation of the LiOH processing plant or commercialisation of the Li-Ion Battery Recycling process.

Bear Scenario - $0.25/sh
NMT fails to commercialise its other ventures outside of its core Mt Marion interest (EZL valuation - $0.26/sh)

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Mon, 24 Sep 2018 08:34:00 +1000 https://www.proactiveinvestors.com.au/companies/news/205480/neometals-receives-50-cent-price-target-from-euroz-205480.html
<![CDATA[News - Neometals converts lithium residue into synthetic zeolite providing potential new revenue stream ]]> https://www.proactiveinvestors.com.au/companies/news/204181/neometals-converts-lithium-residue-into-synthetic-zeolite-providing-potential-new-revenue-stream-204181.html Neometals Ltd (ASX:NMT) has converted lithium leach residue into a valuable advanced engineered material called zeolite which provides the opportunity to add revenue to its integrated lithium strategy.

The result comes from laboratory test‐work by CSIRO Mineral Resources, using a Neometals‐designed process aimed at developing a saleable product.

As well as adding co‐product revenue, this process also minimises waste generation and disposal costs.

READ: Neometals pursuing multiple positions in the lithium supply chain

Neometals managing director Chris Reed said, “We have been working on the zeolite synthesis project for some time and Neometals is delighted with the lab-scale outcomes from its unique process flowsheet.”

Zeolites are microporous, aluminosilicate minerals commonly used as commercial adsorbents, molecular sieves and catalysts.

They can be used to remove carbon dioxide in air purification, moisture and hydrogen sulphide from natural gas and in catalyst protection, amongst other things.

Images showing the crystal structure of synthetic industrial zeolite.

Having investigated the novelty of the process, Neometals has filed an application for International Patent Protection, that follows an existing Australian Provisional Patent application from 2017.

Strong market fundamentals

Reed said, “Synthesis of commercial grade zeolite is really exciting, but equally important are the market fundamentals that support our next steps.

“External market studies show a large addressable market where we have what appears to be a clear competitive advantage associated with zero cost feed material.

“Conversion of spodumene leach residues into a saleable zeolite co‐product also creates an opportunity to significantly reduce lithium production costs.”

READ: Neometals to demerge titanium-vanadium assets, focus on lithium

Synthetic zeolites, like that produced by Neometals, are engineered materials manufactured to tight product specifications while others are naturally‐occurring, relatively low-value materials.

Existing synthetic zeolite production is based on combining various aluminium and silica-bearing minerals that are procured at market prices.

In 2017 the global market for synthetic zeolites was valued at US$13.7 billion.

Integrated lithium production strategy

Neometals has been developing processing technologies to potentially deliver favourable cost and environmental benefits in support of its integrated lithium production strategy.

The zeolite project has been designed to support exploitation of a significant annual quantity of material that would otherwise incur handling and disposal costs.

An engineering cost study for a manufacturing facility adjacent to a lithium hydroxide plant has been awarded to M+W Group, which is completing a FEED study for the Kalgoorlie Lithium Refinery Project.

Pilot-scale program will be considered

Neometals will use this study to assess the economic viability of a zeolite manufacturing process and will consider a pilot-scale test program using leach residues remaining from FEED study test work in 2017/18.

The process of converting spodumene concentrates to lithium hydroxide requires about 7 tonnes of concentrate feed to produce 1 tonne of lithium hydroxide.

In a nominal operation annually producing around 10,000 tonnes of lithium hydroxide, about 62,000 tonnes of 70,000 tonnes of starting feed material reports to waste.

Waste from the process is called leach residue.

READ: Neometals’ lithium strategy gets a thumbs-up from Hallgarten & Company

Neometals has been motivated to reduce future waste from tailings, find a high-value application for its use and improve its competitive position on the lithium hydroxide cost curve.

The proposed Neometals lithium hydroxide refinery is expected to annually produce about 62,000 tonnes of residue at full capacity.

Neometals estimates that conversion of the residue at the refinery could produce in excess of 100,000 tonnes of zeolite product.

This has the potential to significantly improve the competitive position of lithium hydroxide production from spodumene.

Neometals owns a 13.8% stake in the Mt Marion lithium mine near Kalgoorlie, which operates one of the world’s biggest lithium concentrators.

It holds an offtake option, which forms the backbone to its fully‐integrated lithium business aspirations, which include a lithium hydroxide refinery and lithium‐ion battery recycling process.

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Wed, 05 Sep 2018 09:29:00 +1000 https://www.proactiveinvestors.com.au/companies/news/204181/neometals-converts-lithium-residue-into-synthetic-zeolite-providing-potential-new-revenue-stream-204181.html
<![CDATA[News - Neometals pursuing multiple positions in the lithium supply chain ]]> https://www.proactiveinvestors.com.au/companies/news/203438/neometals-pursuing-multiple-positions-in-the-lithium-supply-chain-203438.html Neometals Ltd (ASX:NMT) is building an integrated lithium business which began with its 13.8% interest in the operating Mt Marion Lithium Mine in Western Australia.

Mt Marion is a tier one lithium production asset providing Neometals with cash flow and an option to off-take lithium product.

This off-take option provides Neometals with secure access to lithium concentrate which has been the basis for developing downstream processing by building a lithium refinery in Kalgoorlie.

The company is also developing lithium-ion battery recycling technology to recover lithium and other critical metals.

Developing titanium vanadium business

Neometals also owns 100% of the Barrambie Titanium Vanadium Project in Western Australia, one of the highest grade hard-rock titanium resource globally.

Like Mt Marion, it forms the basis for the company’s developing titanium and vanadium business.

READ: Neometals to demerge titanium-vanadium assets, focus on lithium

During August 2018, Neometals’ board approved plans to demerge its Barrambie Titanium‐Vanadium Project and associated technology assets into a new ASX‐listed company.

The spin-out will allow Neometals and the new company to separately focus on the development of their respective integrated lithium and titanium-vanadium strategies.

Neometals’s managing director Christopher Reed said: “The company has reached an inflection point where both business arms need dedicated management, independent corporate structures and financial resources to realise optimal value.

“Neometals has an enviable lithium portfolio and a disciplined strategy to minimise risk and maximise returns from its lithium feedstocks.

Barrambie has potential to be a globally significant operation

“We understand the incredible potential of Barrambie, and with the application of the same staged development strategy we have used in the lithium business, we have every confidence it will become a globally significant operation.

“The demerger creates an opportunity for shareholders to retain exposure to both businesses and capital markets will gain clarity, courtesy of simplified commodity focus and corporate structure.”

Demerger to create two individually focused companies


The proposed transaction will see Neometals continue to aggressively pursue development of multiple positions in the lithium supply chain.

Neometals’ integrated lithium strategy is based on:

1) Mining and producing spodumene concentrate;
2) Refining spodumene to lithium compounds; and
3) Recycling lithium batteries to recover battery metals.

READ: Neometals’ lithium strategy gets a thumbs-up from Hallgarten & Company

Neometals has interests in three Western Australian lithium projects which are in various stages of development.

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Thu, 23 Aug 2018 11:12:00 +1000 https://www.proactiveinvestors.com.au/companies/news/203438/neometals-pursuing-multiple-positions-in-the-lithium-supply-chain-203438.html
<![CDATA[News - Neometals to demerge titanium-vanadium assets, focus on lithium ]]> https://www.proactiveinvestors.com.au/companies/news/203005/neometals-to-demerge-titanium-vanadium-assets-focus-on-lithium-203005.html Neometals Ltd’s (ASX:NMT) board has approved plans to demerge its Barrambie Titanium‐Vanadium Project and associated technology assets into a new ASX‐listed company.

The spin-out will allow Neometals and the new company to separately focus on the development of their respective integrated lithium and titanium-vanadium strategies.

Neometals will fully focus on developing its fully‐integrated lithium business, underpinned by off-take rights to Mt Marion lithium concentrate.

READ: Neometals’ lithium strategy gets a thumbs-up from Hallgarten & Company

The new company would fully focus on the initial development of Barrambie as a direct shipping ore operation with continued evaluation of subsequent on‐site production of high-purity titanium and vanadium chemicals.

The demerger is subject to shareholder approval and is aims to be completed in the March quarter 2019.

READ: Neometals test work able to recover high-purity titanium product

Neometals’s managing director Christopher Reed said: “The company has reached an inflection point where both business arms need dedicated management, independent corporate structures and financial resources to realise optimal value.

“Neometals has an enviable lithium portfolio and a disciplined strategy to minimise risk and maximise returns from its lithium feedstocks.

Barrambie has potential to be a globally significant operation

“We understand the incredible potential of Barrambie, and with the application of the same staged development strategy we have used in the lithium business, we have every confidence it will become a globally significant operation.

“The demerger creates an opportunity for shareholders to retain exposure to both businesses and capital markets will gain clarity, courtesy of simplified commodity focus and corporate structure.”

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Thu, 16 Aug 2018 09:35:00 +1000 https://www.proactiveinvestors.com.au/companies/news/203005/neometals-to-demerge-titanium-vanadium-assets-focus-on-lithium-203005.html
<![CDATA[News - Neometals’ lithium strategy gets a thumbs-up from Hallgarten & Company ]]> https://www.proactiveinvestors.com.au/companies/news/202164/neometals-lithium-strategy-gets-a-thumbs-up-from-hallgarten-company-202164.html Neometals Ltd (ASX:NMT) is in full-steam-ahead mode and doing all the right things as per the research report by New York City based investment bank Hallgarten & Company.

Hallgarten has assigned a LONG recommendation for Neometals shares with a 12-month target price of 42 cents, an upside of about 45% based on the current share price of 29 cents.

Neometals has interests in three Western Australian lithium projects which are in various stages of development.

Western Australian lithium operations map

The company achieved strong operational performance at the Mt Marion mine during the June 2018 quarter with 109,000 tonnes of lithium concentrate produced.

Neometals: horizons of growth

The following is an extract from the Hallgarten report.

Mount Marion

The Mount Marion lithium project was added to the Neometals portfolio in September 2009. It is one of Australia’s largest high-grade lithium spodumene occurrences.

Neometals and its partner Mineral Resources Limited (ASX:MIN) cut canny back-in offtake deals for themselves when they sold out their majority of the Mt Marion lithium project to Ganfeng in 2016.

Mt Marion is now churning out Lithium concentrate and generating income for the partners.

The retained right to 12.37% of the production of Mt Marion from February 2020 means that Neometals has a potential flow of ore that it now wants to upgrade and keep the value-added.

Mt Edwards Lithium Project

In mid-March of 2018 Neometals announced the acquisition of the Mt Edwards Lithium Project from Estrella Resources and a minority partner.

The project covers 240 square kilometres and is located 40 kilometres south of Mount Marion.

Neometals views Mt Edwards as a strategic addition to its spodumene sourcing pipeline to support its planned lithium hydroxide business.

Price Action

We have been following Neometals for the best part of a decade now.

In the depths of the lithium slump the stock was trading at 3 cents but then soared in 2016 to around 50 cents upon developments, ironically all before lithium became fashionable again.

The stock then slumped back into the low 30 cents range and has dawdled about there, irrespective of developments in the company or the mineral, with only a fleeting recovery to 50 cents in November of 2017 and has dwindled again back to around 30 cents.

Conclusion

Neometals and MinRes did this in their dealings with Ganfeng with seemingly the Chinese group thinking it could circle back and take out the minorities at its leisure. It has proven to be grievously mistaken in this and Neometals looks to be the next global producer of elaborated Lithium.

Our only fear on the current strategy is that it may be a gambit saying to Ganfeng “take us out or we will be competitors of yours, depriving the mothership of content”.

If Neometals were to sell out to Ganfeng this would be a bitter disappointment to ourselves (and the WA government) and we would finally cut our ties to this story.

However, at this point, the company is in full-steam-ahead mode and doing all the right things.

We have had Neometals in our model mining portfolio since last decade as a Long call and we reaffirm our twelve-month target price of 42 cents.

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Fri, 03 Aug 2018 12:59:00 +1000 https://www.proactiveinvestors.com.au/companies/news/202164/neometals-lithium-strategy-gets-a-thumbs-up-from-hallgarten-company-202164.html
<![CDATA[News - Neometals test work able to recover high-purity titanium product ]]> https://www.proactiveinvestors.com.au/companies/news/200521/neometals-test-work-able-to-recover-high-purity-titanium-product-200521.html Neometals Ltd (ASX:NMT) has received positive results from its initial metallurgical test work program at one of the top metallurgical institutes in China.

Test work on a 20-kilogram sample from the Barrambie Titanium Vanadium deposit in Western Australia recovered over 90% titanium dioxide.

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

Neometals’ managing director Chris Reed said: “We are pleased with these initial results which confirm a simple process flowsheet can recover a high- purity titanium product for potential users of the phase I Barrambie DSO operation.

“Barrambie is a unique tier 1 project that offers a range of development alternatives including the possibility for separate titanium and vanadium operations in due course.

“The results establish the potential value‐in‐use of DSO for negotiations with potential customers who seek quality feedstocks from low‐risk jurisdictions that are amenable to simple and conventional processing."

 

The sample was put through a standard flow sheet to produce a mixed mineral concentrate.

Smelting and slag cleaning was then used to produce a titanium dioxide product and vanadium pentoxide product.

Neometals is investigating direct shipping ore (DSO) being toll beneficiated and smelted in China as a phase I operation with a parallel phase II development utilising on‐site processing options.

Barrambie is one of the world’s highest grade hard rock titanium deposits and hosts significant levels of high-grade vanadium.

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Wed, 11 Jul 2018 08:54:00 +1000 https://www.proactiveinvestors.com.au/companies/news/200521/neometals-test-work-able-to-recover-high-purity-titanium-product-200521.html
<![CDATA[News - Neometals increases Mt Edwards nickel resource to 123,340 tonnes ]]> https://www.proactiveinvestors.com.au/companies/news/199440/neometals-increases-mt-edwards-nickel-resource-to-123340-tonnes-199440.html Neometals Ltd (ASX:NMT) has increased the nickel resource at its Mt Edwards Project in Western Australia to 7.4 million tonnes at 1.7% nickel for 123,340 tonnes of contained nickel.

The company has achieved an increase of 155% in contained nickel from its maiden April 2018 resource following completion of the acquisition of tenements held by Apollo Phoenix Resources.

READ: Neometals completes acquisition of Mt Edwards lithium project

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.

Notably, the Mount Marion Lithium Project includes one of the world’s biggest lithium concentrators.

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.

READ: Neometals sends titanium vanadium bulk sample to China for potential off-take partners

The company is also shipping a 53-tonne bulk sample to China from its Barramble Titanium Vanadium Project in Western Australia.

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

Neometals is currently progressing the dual-track evaluation of DSO and integrated titanium/vanadium chemical production at Barramble.

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Mon, 25 Jun 2018 11:20:00 +1000 https://www.proactiveinvestors.com.au/companies/news/199440/neometals-increases-mt-edwards-nickel-resource-to-123340-tonnes-199440.html
<![CDATA[News - Neometals completes acquisition of Mt Edwards lithium project ]]> https://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 https://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 ]]> https://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 https://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 ]]> https://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 https://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 ]]> https://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 https://www.proactiveinvestors.com.au/companies/news/198315/neometals-enters-option-for-lithium-hydroxide-refinery-site-198315.html
<![CDATA[News - Neometals declares dividend for shareholders ]]> https://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 https://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 ]]> https://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 https://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 ]]> https://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 https://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 ]]> https://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 https://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 ]]> https://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 https://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 ]]> https://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 https://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 ]]> https://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 https://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 ]]> https://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 https://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 ]]> https://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 https://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 ]]> https://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 https://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 ]]> https://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 https://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 ]]> https://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 https://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 ]]> https://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 https://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 ]]> https://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 https://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 ]]> https://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 https://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 ]]> https://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 https://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 ]]> https://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 https://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 ]]> https://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 https://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 ]]> https://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 https://www.proactiveinvestors.com.au/companies/news/184038/neometals-lodges-patent-with-eye-on-lithium-ion-batteries-184038.html