EDITOR: | September 26th, 2018

Neometals’ Chris Reed on building a lithium battery recycling plant

| September 26, 2018 | No Comments
image_pdfimage_print

“Our most immediate corporate move is to recommend to the shareholders to demerge our titanium-vanadium assets away from the lithium business. Mt Marion is very mature. It is generating cash. We are now looking to build a down streaming lithium hydroxide plant, a lithium battery recycling plant. They have got their own capital needs. Barrambie is a far, far bigger resource by value, but not as developed so we are not getting value for that in the current portfolio. We will separate that out first.” States Christopher Reed, Managing Director of Neometals Ltd. (ASX: NMT), in an interview with InvestorIntel Corp. CEO Tracy Weslosky.

Tracy Weslosky: Here we go again. You just keep hitting one benchmark after another, one milestone after another. On top of that, for the last several years you have been— I have got here, 3 consecutive dividends in the last financial years. Do I have that information correct? Please correct me. 

Chris Reed: That is correct Tracy. We have returned about $20 odd million to our shareholders in 3 consecutive dividends.

Tracy Weslosky: Being in this space I never hear about any other company doing this in this particular market valuation. Can you tell me what makes you different? Why are you doing this for your shareholders or how can you do this? 

Chris Reed: Our moto is we are a business. I measure the success of a business by giving back more than you take off people. We managed to sell some equity in the Mt Marion mine a number of years ago, which gave us a very, very healthy cash balance far in excess of what we needed to spend. Prudent returns back to the shareholders is one of the things we pride ourselves. You have got to remember that the board of management is the largest shareholder in the company so we are very well aligned to sharing the gains that we do make.

Tracy Weslosky: I know we love this here at InvestorIntel. Can you tell us when you plan on listing in North America or plan on doing a dual listing?

Chris Reed: Our most immediate corporate move is to recommend to the shareholders to demerge our titanium-vanadium assets away from the lithium business. Mt Marion is very mature. It is generating cash. We are now looking to build a down streaming lithium hydroxide plant, a lithium battery recycling plant. They have got their own capital needs. Barrambie is a far, far bigger resource by value, but not as developed so we are not getting value for that in the current portfolio. We will separate that out first. We have an American depository receipt program on the Pink Sheets and the NASDAQ International Designation. For us we think that the shareholders prefer— they will own the same amount in each project, but in two companies.

Tracy Weslosky: This was just put out in a news release just a month ago. I believe I read that you would have completed this demerger in March/spring of next year. Is that correct?

Chris Reed: Yeah, certainly. Look we have got to put our financial results out by the end of September. We will have a bit more information around the demerger. We have to have all our documents to the shareholders at least 4 weeks before the annual general meeting, which is at the end of November. We hope to complete that early pending approval in the March quarter, early in the March quarter of 2019.

Tracy Weslosky: You always put out such comprehensive news releases. You had one more recently about being able to produce commercial grade zeolite…to access the complete interview, click here

Disclaimer: Neometals Ltd. is an advertorial member of InvestorIntel Corp.


Raj Shah

Editor:

Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>


Copyright © 2018 InvestorIntel Corp. All rights reserved. More & Disclaimer »


Leave a Reply

Your email address will not be published. Required fields are marked *