NMT - Neometals Limited

Knobby22 said:

My pick for the month.
It has been very stable through the downturn suggesting accumulation. Maybe there will be more good news this month?

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Their price certainly follows the news updates, sold out a few months ago, looking to get back in. They seem to be ranging from $1.20 to $1.80, still no cash flow so I guess the market is waiting to see some return on the promises.

sptrawler said:

Their price certainly follows the news updates, sold out a few months ago, looking to get back in. They seem to be ranging from $1.20 to $1.80, still no cash flow so I guess the market is waiting to see some return on the promises.

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I sold a small amount at $1.55 to get my capital back.

I have NMT on my price watch list at a lowish price, today it hit it and I'm surprised.

Why is the SP dropping when its stats are starting to line up? With fossil fuel price hikes and shortages, new investments in renewables, a signed contract with Mercedes.

"Nothing comes from nothing"

Energy inputs and raw materials.
More fundamentally, legislation and agreement on IP and right to repair.

Like many other shares NMT has given up all of its recent gains. Was almost $2 at the beginning of the year and has fallen as low as 84.5c only a couple of weeks ago. It is currently back to $1.05

But none of this changes the value of their resource recyling projects. They just released their Vanadium Recovery study. They intend to recover Vanadium from spent steel slag at very good margins. And this is only one of a quartet of high quality projects

VANADIUM RECOVERY STUDY CONFIRMS LOWEST QUARTILE COST POTENTIAL

HIGHLIGHTS
• Class 3 Engineering Cost Study component of Feasibility Study completed with assistance from leading Nordic engineering group Sweco Industry Oy;

• Operating cost estimate of US$ 4.38/lb V2O5 places VRP1 project in lowest quartile of the industry cost curve;

• Capital cost estimate of US$ 341 M for upsized 300ktpa plant (including 15% contingency); and

• Permitting activities well advanced with Environmental Permit submitted to Finnish regulators and a decision expected in September 2022.

Emerging battery materials producer, Neometals Ltd (ASX: NMT) (“Neometals” or “the Company”), is pleased to announce the completion of an Association for the Advancement of Cost Engineering (“AACE”) Class 3 Engineering Cost Study (“ECS”) on the recovery of high-purity vanadium pentoxide (“V2O5”) from high-grade vanadium-bearing steel by-product. The ECS was completed with assistance from leading Nordic engineering group Sweco Industry Oy (“Sweco”).

As previously announced (see Neometals announcement titled “High-Grade Vanadium Recycling Agreement” dated 6thApril 2020), Neometals has the option to enter into a 50:50 incorporated joint venture (“JV”) to develop a vanadium recovery project (“Vanadium Recovery Project” or “VRP1”) with unlisted Australian mineral development company, Critical Metals Ltd (“Critical”). The parties are jointly evaluating the feasibility of constructing a facility in Pori, Finland to process and recover high-purity V2O5 from vanadium-bearing steel making by-product (“Slag”) generated by SSAB EMEA AB and SSAB Europe Oy (collectively “SSAB”) in Scandinavia.
The VRP1 offers a compelling business case which is underpinned by:

• access to very high-grade vanadium feedstocks without upstream mining costs and associated operating risks;
• potentially robust economics;
• processing flowsheet utilising conventional equipment at atmospheric pressure and mild temperatures with non-exotic materials of construction; and
• a very low or net zero greenhouse gas footprint given the absence of mining and a processing route sequestering CO2 into potentially saleable carbonate by-product.

Neometals is encouraged by the outcomes of the ECS which confirms the potential for lowest quartile operating costs. This aligns with prior outcomes from the historical Neometals pre-feasibility study (“PFS”), however the ECS has been completed to a ±15% level of accuracy compared to the previous -20% +25%. Capital and Operating cost estimates are denominated in US$ dollars using an exchange rate of 1 Euro: 1.123 US$.


Vanadium Recovery Cost Study

• Neometals lithium-ion battery recycling JV, Primobius, has executed a purchase order from Mercedes Benz recycling subsidiary, LICULAR GmbH to complete front-end engineering for the shredding section of LICULAR’S integrated recycling plant;
• The Cooperation Agreement between Primobius and LICULAR is now legally binding; and
• LICULAR’s planned 10tpd integrated recycling plant timetable contemplates execution of an equipment supply agreement in the December quarter of 2022.

...getting on with it

Sharp jump in NMT SP today on big volume.. They have been hammered in the past month but realistically their progress and business model is still outstanding. This was released on 14th July and perhaps todays jump is reflects some awareness of this imminent report.

LITHIUM-ION BATTERY RECYCLING UPDATE

HIGHLIGHTS
• Primobius’ Engineering and Cost Study for a 50tpd lithium-ion battery shredding ‘Spoke’ expected end of July 2022 and refinery ‘Hub’ study in DecQ 2022;

• Cost study delays due to Primobius’ focus on ramp-up of its Hilchenbach Spoke operation and engineering obligations associated with the Mercedes/LICULAR and Stelco agreements; and

• Completion of front-end engineering will precede the offer of equipment supply agreements for both 10tpd Mercedes/LICULAR and 50tpd Stelco Spokes in December 2022.

Lithium Battery Recycling Update

The latest presentation by NMT highlights their progress to (profitably) recovering and recycling all the critical resources that are going into millions of electric cars.

Effectively they will collect millions of used LiOn and other batteries from clients and return to the customers thousands of tons of fresh raw materials at very competitive prices. Great mining operation..

SP is picking up again.

The Vanadium recovery project is progressing. They are looking to get the final financing and constructions plans ready within a few months. It is an exceptionally environmentally friendly prokect which should also offer an excellent financial return


VANADIUM RECOVERY PROJECT ENVIRONMENTAL PERMIT GRANTED

HIGHLIGHTS
• The Vanadium Recovery Project in Pori, Finland has been granted an Environmental Permit by the Regional State Administrative Agency for Southern Finland;

• Permit authorises, subject to conditions, construction and operation of a vanadium recovery plant to produce supply constrained vanadium pentoxide in Europe;

• Nordic investment bank Aventum Partners appointed to lead debt process; and

• Formal agreements being advanced with SSAB for additional feedstock and Betolar for key by-product offtake.

Emerging sustainable battery materials producer, Neometals Ltd (ASX: NMT) (“Neometals” or “the Company”), is pleased to announce that The Regional State Administrative Agency for Southern Finland has granted an environmental permit for operation of a vanadium recovery plant and associated infrastructure (“Vanadium Recovery Project” or “VRP1”). The permit authorises, subject to a number of conditions, the production of approximately 9,000tpa of vanadium pentoxide (see Table 1 for the key production and storage parameters afforded by the permit).

Neometals is earning a 50% equity interest in an incorporated joint venture (“JV”) to develop VRP1 with unlisted Australian mineral development company, Critical Metals Ltd (“Critical Metals”) (for further details see Neometals announcement titled “High-Grade Vanadium Recycling Agreement” dated 6thApril 2020). The parties are jointly evaluating the feasibility of constructing a facility in Pori, Finland to process and recover high-purity V2O5 from vanadium-bearing steel making by-product (“Slag”) generated by SSAB EMEA AB and SSAB Europe Oy (collectively “SSAB”) in Scandinavia.

The VRP1 offers a compelling business case which is underpinned by:
• Domestic production of a supply constrained high-purity critical raw material (per European Commission definition) for electric mobility, defence and space;
• Secure access to very high-grade vanadium feedstocks through conditional Slag purchase agreement with SSAB;
• Proprietary alkaline leach flowsheet utilising locally captured carbon dioxide and conventional equipment; and
• a very low or net zero greenhouse gas footprint given the absence of mining and a processing route sequestering CO2 into potentially saleable carbonate by-product.

Yet another very encouraging result from NMT's quartet of projects. Really wonder when this company will properly recognised for the value of the projects they are commercialising.

It's a down day on the market. Perhaps when punters get out of the trenches they might review this stocks value.

SUCCESSFUL COMMERCIAL-SCALE SMELTING TRIALS FOR BARRAMBIE

HIGHLIGHTS
· Commercial-scale smelting of Barrambie mineral concentrate blended with commercial ilmenites produced premium quality chloride grade titanium slag;

· Results provide real world industry validation that saleable titanium and iron / vanadium co-products can be produced using a simple and conventional processing pathway;

· With technical due diligence completed, Neometals and potential offtake partner, Jiuxing, can commence binding offtake negotiations; and

· Completion of pre-feasibility study expected in December quarter to confirm‘value-in-use’ for the product basket to support offtake dialogue.

Emerging battery materials producer, Neometals Ltd (ASX: NMT) (“Neometals” or “the Company”), is pleased to announce highly encouraging results with production of +90% TiO2 chloride slag from the industrial scale smelting trial of a blend of Barrambie Mixed Gravity Concentrate (“MGC”) with other ilmenites. Neometals’ potential offtake partner, Jiuxing Titanium Materials (Liaonging) Co. Ltd (“Jiuxing”), ran the trial at their production facility in China. Jiuxing is one of the leading chloride-grade titanium slag producers in the world and is the largest in north-eastern China.

During H1 2022, a mixed gravity bulk sample was prepared from Barrambie mineralisation with approximately 40t delivered to Jiuxing in China. Jiuxing then blended the Barrambie MGC with other commercially available titanium sources to produce feedstock suitable for an industrial scale smelter trial. The +90% TiO2 titanium chloride grade slag produced iswithin specification of what is a well-established standard titanium industry feedstock. Importantly, the smelting trial was run at a commercial industrial facility and the successful result represents the final stage of technical due diligence required for Jiuxing and Neometals to begin negotiation on a binding formal offtake agreement. Cornerstone offtake of MGC is a key pillar in Neometals’ Barrambie strategy of deriving value from the titanium, vanadium and iron mineral resource on a capital light basis with refining activities being undertaken by purchasers overseas.

The Jiuxing MoU1 contemplates a path to a formal offtake agreement where Neometals supplies a MGCor separate ilmenite and iron-vanadium concentrate from Barrambie to Jiuxing. Specifically, the MoU outlines an evaluation regime and contains the key commercial terms for a formal offtake agreement (i.e. pricing, volumes, price floor etc.), subject to product evaluation from smelting trials. The Jiuxing MoU contemplates the parties negotiating and entering into a binding formal offtake agreement for the supply of 800,000 dry tonnes per annum (“dtpa”) of MGC or 500,000 dtpa of ilmenite and 275,000 dtpa of iron-vanadium concentrate, on a take-or-pay basis for a period of 5 years from first production.

Barrambie - Successful Commercial Smelting Trials (PDF 615.6 KB)

The Pre Feasibilty Study for the Barrambie project is in. Very detailed analysis. Seems like an excellent value project for NMT and the potential offtake partner.

ROBUST OUTCOMES FROM BARRAMBIE TITANIUM PROJECT PFS
HIGHLIGHTS

• Neometals completes Class 4 Pre-Feasibility Study (“PFS”) for production of titanium (ilmenite) and iron-vanadium concentrate from titanium-rich Eastern bands at Barrambie;

• Results confirm viability of commercialising Barrambie with potential to supply in excess of 500,000 tpa of high-quality supply constrained ilmenite in the first 10 years of the project;

• Average free cash (before tax, depreciation and amortisation) of AUD $136M p.a. over the first 10 years;

• Probable Ore Reserve of 44.5 Mt at 18.7% TiO2, 44.1 % Fe2O3 and 0.61% V2O5;

• PFS assumes a simple mine, crush, mill and beneficiate operation to produce mixed gravity concentrate at Barrambie, followed by additional processing at a site with lower cost natural gas supply east of Geraldton; and

• The PFS confirms ‘value-in-use’ for Barrambie’s product basket and supports dialogue with potential offtake partner Jiuxing.

Barrambie Titanium - Robust PFS Results (PDF 8,192.9 KB)

NMT has fallen significantly in the past few weeks. There was an update on their Primobius battery recycling project.
They have re adjusted their development timeline to accomodate a "end to end " demonstration trial for their customers. Clearly they want to see it working with their own eyes before committing to longer term contracts.
I think this may be behind the recent sell offs.

Of course if/when these demonstration trials are successfully completed there should be a strong rebound on the strength of signed agreements.


PRIMOBIUS OPERATIONS UPDATE
HIGHLIGHTS

• Primobius makes development timeline amendments to accommodate a new dedicated ‘end-to-end’ demonstration trial for customers commencing in December 2022;

• The trial will test refining ‘Hub’ process improvements using cells from discharged and disassembled customer EV modules that have been shredded in the Hilchenbach commercial ‘Spoke’ plant;

• Hub Engineering cost study paused to allow incorporation of metallurgical data from the trial;

• The trial will precede H1 2023 targets for execution of the Mercedes-Benz Spoke and Hub supply agreements, the Hub engineering cost study and execution of Stelco Spoke plant supply agreement; and

• Cornerstone battery feedstock requirements for the Hilchenbach 10tpd Spoke have been secured for 2023 from the German OEM supply chain.

I'll again include NMT in my 2023 tipping.
It's been sold down in recent times, which supplies a potential technical opportunity, as Basilio notes above.
But I still like (..and see potentia in) the NMT projects, and want to retain exposure to this sector, i.e. :
lithium battery recycling, titanium & vanadium, and llthium hydroxide refinery.

Logique2 said:

I'll again include NMT in my 2023 tipping.
It's been sold down in recent times, which supplies a potential technical opportunity, as Basilio notes above.
But I still like (..and see potentia in) the NMT projects, and want to retain exposure to this sector, i.e. :
lithium battery recycling, titanium & vanadium, and llthium hydroxide refinery.

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Loqique and I in furious agreement on NMT for teh reasons he outlines above

I might even throw a few more real bucks at the shares but that would absolutely destroy its chances of success.

Cheers Bas

Further progress on developing a collaborative approach to commercialising the Vanadium project.

CRITICAL MINERALS COLLABORATION SIGNED WITH NEOMETALS
Western Australian regional vanadium and titanium concentrate processing hub to unlock critical and battery mineral projects

KEY POINTS
• AVL and ASX listed Neometals Ltd (ASX: NMT and AIM: NMT) have signed a Term Sheet to investigate opportunities for:

AVL to purchase and further process the co-product vanadium/iron concentrate generated from Neometals’ Barrambie Project; and

AVL and Neometals to co-locate and/or share infrastructure near AVL’s processing plant site.

• Significant vanadium, titanium and iron processing opportunities are expected to flow from the proposed collaboration.

• Development of AVL’s Midwest regional concentrate processing hub is anticipated to help unlock critical and battery mineral projects in the region.

Australian Vanadium Limited (ASX: AVL, “the Company” or “AVL”) is pleased to announce that Neometals Ltd (ASX: NMT and AIM: NMT), through its wholly owned subsidiary Australian Titanium Pty Ltd (ATI), has signed a non-binding Term Sheet to explore opportunities for AVL to process co-product vanadium concentrate from Neometals’ 100% owned Barrambie Project and to co-locate or share non-process infrastructure near AVL’s proposed Tenindewa processing plant site.
Neometals recently announced the results of a pre-feasibility study (PFS) which assumes production of ilmenite as well as an iron/vanadium co-product.1 Under the Term Sheet this co-product would be supplied to AVL for vanadium extraction.

Latest Quarterly activity reports released by NMT. Comprehensive and encouraging. (Couldn't copy and paste main points)


Quarterly Activities Report - December 2022 (PDF 2,502.9 KB)

I've previously held NMT and would like to re-enter.
Currently looking quite interesting IMO.
Still some resistances overhead to overcome, but when it turns I like the thought of a run to 1.57 with possible hesitations on the way around 1.13, and 1.32ish

Presentation released on the battery recycling project. Looks very good.

Why have I posted this link ?
Go to Item 7 and 10.