NMT - Neometals Limited
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Re: RDR - Reed Resources
Hi AllAussie I have been digging fairly deep with RDR over the past few months and and bought a pocket when they where just below 0.18 a few weeks ago most likely for a med hold.
Fundamentally the company sounds reasonably strong, if my research serves me correctly they are looking to make gold pour in a few months. (they currently have a JORC resource of a little over 3M oz of gold)
My main concern atm is obviously the gold price.
I am relatively new to investing so am not quiet sure what i can and can't post on here in terms of information so please don't construed this as a recommendation or advise.
Although i feel it necessary to reiterate the fact i am largely an investor, not a trader (for now
). Most of my decisions are on the basis of fundamentals. (at this stage anyways)
Hi AllAussie I have been digging fairly deep with RDR over the past few months and and bought a pocket when they where just below 0.18 a few weeks ago most likely for a med hold.
Fundamentally the company sounds reasonably strong, if my research serves me correctly they are looking to make gold pour in a few months. (they currently have a JORC resource of a little over 3M oz of gold)
My main concern atm is obviously the gold price.
I am relatively new to investing so am not quiet sure what i can and can't post on here in terms of information so please don't construed this as a recommendation or advise.
Although i feel it necessary to reiterate the fact i am largely an investor, not a trader (for now
). Most of my decisions are on the basis of fundamentals. (at this stage anyways)
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On December 19th, 2014, Reed Resources Limited (RDR) changed its name and ASX code to Neometals Limited (NMT).
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Any Fundy guys care to comment on yesterday's accounts please?
Cheers.
Cheers.
The performance to date and balance sheet is strong, the Mt Marion project is looking to increase production, this lithium junior is already paying serious dividends. This is the best performing stock in my portfolio. The chart says it all.
With a share buy back about to take place it just keeps getting better. NMT and GXY are my favourite lithium plays, and a real stand-out compared to all of the prospecting options on the ASX for Lithium.
Presentation from last week here:
https://www.youtube.com/watch?v=-k-__88kVZI
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Came across this one this morning as I was trawling through the charts. It looks like there may be a possible breakout.
I had a bit of a look at what they did, Lithium, which explains why it has been in the doldrums. I try not to get to excited by the bedtime stories these guys tell but I did like the fact they have a recycle plant up and running in Canada recycling EV lithium batteries. I like this on a couple of levels, in that they are a miner who have established markets for the product, which means they get all the profit from the recycle unlike a normal recycler who would have to find a buyer. Plus I like the concept of this stuff actually being re-used and not becoming landfill. They are paying a divvie and have plenty of money, so they say. I didn't try to read their AR, I will leave that for others who are better equipped. I find this an interesting stock both chart-wise and story-wise.
Here is Chris Reed giving a presentation to the 2019 Explorers Conference....
This is the 6month chart showing the SMAs and Twiggs weekly money flow
The 21dsma is just about to cross above the 200dsma which has now moved under the price. It is also beyond the long term overhead descending resistance line coming from November 2017. The Twiggs weekly money flow is starting to rise a little, still early days.
and here is the two year chart showing the 200dsma
I had a bit of a look at what they did, Lithium, which explains why it has been in the doldrums. I try not to get to excited by the bedtime stories these guys tell but I did like the fact they have a recycle plant up and running in Canada recycling EV lithium batteries. I like this on a couple of levels, in that they are a miner who have established markets for the product, which means they get all the profit from the recycle unlike a normal recycler who would have to find a buyer. Plus I like the concept of this stuff actually being re-used and not becoming landfill. They are paying a divvie and have plenty of money, so they say. I didn't try to read their AR, I will leave that for others who are better equipped. I find this an interesting stock both chart-wise and story-wise.
Here is Chris Reed giving a presentation to the 2019 Explorers Conference....
This is the 6month chart showing the SMAs and Twiggs weekly money flow
The 21dsma is just about to cross above the 200dsma which has now moved under the price. It is also beyond the long term overhead descending resistance line coming from November 2017. The Twiggs weekly money flow is starting to rise a little, still early days.
and here is the two year chart showing the 200dsma
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Good analysis Ann, I believe they are well positioned in terms of balance sheet. They have cash and investments that is nearly as big as their market cap and that is probably why they just paid a very attractive 2c dividend which is around 9% yield at current share price of 22.5c.
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Thank you very much for the analysis aus-trader, most appreciated. So we have a good balance sheet, a nice looking chart and a very generous divvie. Let's see how it travels!
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Yes all true, the Lithium price has a large bearing on the share price as said by Chris Reed in the presentation you showcased. So just me thinking, that might be the Achille's heel holding the share price down to a value that is nearly cash backed.Thank you very much for the analysis aus-trader, most appreciated. So we have a good balance sheet, a nice looking chart and a very generous divvie. Let's see how it travels!
For a small mining firm, Neometals Ltd (NMT) is doing something right to generate a lot of cash and they are happy to reward shareholders when it seems prudent to do so. I have followed many mining firms over the years and usually what happens is when a mining company generate a lot of cash from a 'cash cow' mining asset, the management usually get greedy and start buying useless assets and waste that money like a celebrity on Fifth Av, NY.
One of my favourite mining companies Metals X Limited (MLX), that has a beautiful Tin mining operation that produces a nice profit each year, seems to have put a hole on the bottom of the ship via an acquisition and has it's share price in the gutter. I have been discussing about the current state of this mining company with 'Miner' in the MLX thread.
Knobby22
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I will have to look closer as I am doing this from memory (I looked at it a couple of weeks ago) but didn't they sell the mine hence the dividend return?
The new lithium recycling plant is a prototype and isn't it still being developed? The main one is some years away after a feasibility study
Though I believe it is probably a company with a future, it's as bit of a long term hold.
The new lithium recycling plant is a prototype and isn't it still being developed? The main one is some years away after a feasibility study
Though I believe it is probably a company with a future, it's as bit of a long term hold.
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Pretty much spot on Knobby, what they have done is clever and that is to get a Chinese partner to develop their mine (Mt. Marion) with very little cost to the company itself and still retaining a large stake of the project. That stake was sold to the Chinese partner, hence the bounty of cash, part of which was returned to shareholders as a special dividend. Also has big Vanadium/Titanium deposit that is being developed which may take time to get to feasibility and a decision to mine as you said.
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Good advice Knobby, appreciated. I am trying to avoid the 'story' as much as possible, that is why I like charts, they tend to be relatively honest as far as the 'story' is concerned.
Yes and this is what has been smacking all the lithium miners for some time now. It is a reservation I have about all the lit stocks.
This is the current Lithium price chart as measured by an ETF of Lithium miners.
It fell through a symmetrical triangle and beyond a support of around $26 and is now headed pretty quickly toward another support line of around $24. Its last close was $24.90. $25 may also offer support. It will be interesting to see if this becomes a floor for the price.
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I didn't know there was an ETF for Lithium suppliers/miners, thanks for pointing out Ann. I was only monitoring Lithium price, which is clearly in a down-trend:
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Looks like a positive outcome from the scoping study, based on today's announcement...
Knobby22
Mmmmmm 2nd breakfast
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Nice, still need the feasibility study.
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Yes, that's when things could get interesting and share price could start to reflect the value of the project.
At least the numbers look good at this stage. I am not an expert in evaluating the mining prospects but normally it takes 4 to 5 years for the payback of the investment. NMT is saying less than 2 years to payback in Figure 1 in the scoping study highlights, which looks promising.
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The chart you have there is an ETF for Lithium from TradingEconomics. As I understand it there are several grades of Lithium and they all have various prices so the best way is to look at a group of producers as there is no single price for Lithium.
......This ETF tracks the performance of the lithium industry. The biggest lithium producers are: Australia, Chile, Argentina, China and Zimbabwe. This page includes a chart with historical data for Lithium. Lithium - actual data, historical chart and calendar of releases - was last updated on June of 2019. Ref. Scroll to bottom of page...
Neometals proposed lithium-ion battery recycling plant could net $1.2b
A scoping study on a proposed new lithium-ion battery recycling plant could potentially generate $1.2 billion in revenue over 10 years for Perth-based Neometals (ASX: NMT) if the technology is given the green light.
The lithium company today reported robust economic outcomes from the study on its lithium-ion battery recycling process currently being demonstrated at a purpose-built pilot plant in Ontario, Canada.
The plant was built within world-class facilities owned by Canadian metallurgical and process design company SGS Lakefield.
Conducted by engineering group Primero, the scoping study determined operating scenarios for the proprietary recycling process based on Neometals’ bench scale test work and on an associated mass-energy balance model prepared by mineral processing consultant Strategic Metallurgy.
The outcomes support Neometals’ strategy to target the growing need for sustainable recycling solutions as the global adoption of lithium-ion batteries continues to grow. More...
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Cheers Ann. In fact your Lithium ETF graph and my Lithium price graph looks remarkably similar, so they seem to have very good correlation.
Based on your research too I can add to my conviction that there is certainly good potential for this battery recycling project. Currently the NMT Market Cap is quite small at ~$128m so as I said before the market hasn't factored in the size of the project potential into the share price. The thing is there probably needs to be a catalyst like a surge in Lithium price as we discussed earlier or a Definitive Feasibility Study (DFS) as Knobby pointed out that could trigger a re-rating of the share price.
So let's keep an eye on this thing, I reckon once there is momentum behind it, it will start to get more and more coverage and in terms of SP, won't stay in the doldrums any longer. If you happen to see signs of share price momentum and signs of potential higher prices from chart analysis, keep us posted. In terms of the fundamentals I will not hesitate to buy it as a speculative miner with a lot of future potential in my Speculative Stock Portfolio.
