Neometals to demerge their vanadium asset for another shareholder win
This year’s big story as we head towards Christmas has to be vanadium. Vanadium pentoxide has been trading near a 13 year high (currently at ~$US 31/lb) on the back of new safety standards in China, that mandates a higher proportion of the metal in the production of rebar-steel used in construction. This high strength metal is increasingly used in the aviation industry and has a growing market in vanadium flow batteries that store renewable energy. As a result of skyrocketing vanadium metal prices many companies are now looking at the metal with a new focus.
Neometals Ltd. (ASX: NMT), an industrial minerals project developer, has recently announced the formal commencement of an update to their 2009 Definitive Feasibility Study for their 100% owned Barrambie Vanadium-Titanium-Magnetite project in Western Australia. The Barrambie project is one of the world’s largest and highest grade hardrock titanium-vanadium deposits. Barrambie sits on a granted mining lease with full native title agreements in place and historic approval for an open-cut mine and processing plant. It hosts a 280 million tonne resource at 9.18% titanium and 0.44% vanadium.
Neometals to demerge their Barrambie vanadium asset
On the back of surging prices for vanadium, Neometals looks to re-focus their Barrambie asset into a new company separate from their lithium business. Neometals shareholders will receive shares in the new entity via an in‐specie distribution. The demerger is expected to be completed in the March 2019 quarter, subject to approvals and consents.
Neometal’s Managing Director Chris Reed said: “Barrambie has played second fiddle in recent years to our lithium endeavors, however it is to our knowledge, the most advanced, undeveloped green-fields vanadium project globally. Our extensive historical exploration and evaluation works will enable us to fast-track an updated Definitive Feasibility Study.”
Get our daily investorintel update
Neometals is looking at a staged development, starting with the direct shipping of ore being sold to processors in China, to be followed up by an onsite concentration and refining operation. Neometals will move quickly while prices are strong and demand is high for the supply of quality feedstock.
Neometals lithium spodumene business at Mt Marion is doing well
On November 15 2018 Neometals Ltd and its partners revealed excellent sale prices for their 6% spodumene concentrate from their 13.8% owned Mt Marion Lithium Project in Western Australia.
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; and
- For shipments departing October 1, 2018 to December 31, 2018: US$930.80 per dry metric tonne
Neometals continues to offer investment opportunities in lithium mining and processing (lithium hydroxide plant in planning), lithium-ion battery recycling (in planning and focus on cobalt), and proprietary technologies that assist downstream integration.
Neometals is carving their own niche in the massively expanding battery sector, with an integrated lithium battery chain and the soon to be de-merged Barrambie Titanium-Vanadium Project, which is expected to be listed in Q1 2019 on the ASX. Neometals offers so much in the battery metals market that investors can potentially prosper from current or near term lithium, cobalt (recycling), vanadium and titanium projects.
Based in Perth and hailing from the land down under Neometals has enormous potential for only a small market cap of AU$ 125 m.
Matthew Bohlsen holds a Graduate Diploma in Applied Finance and Investment (similar to CFA), and a Graduate Diploma in Financial Planning. He has 30 years ... <Read more about Matthew Bohlsen>