Company
ASX:E25
Element 25 is an ASX-listed company operating the world-class 100%-owned Butcherbird Manganese Mine in Western Australia. The high-quality manganese ore from Butcherbird is ideal for conversion to high-purity manganese sulphate monohydrate (HPMSM), a critical material for electric vehicle (EV) battery cathodes.
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Just 14 months after a pre-feasibility study, ore from Australia’s biggest onshore manganese deposit has been shipped out, solidifying Element 25’s move from explorer to producer.
Around 25,000-30,000 tonnes of manganese concentrate from the project will be transferred to Port Hedland for shipping.
The letter of intent covers initial transport arrangements with both parties finalising a long-term commercial arrangement that will see the introduction of new quad road trains during the remainder of 2021.
Butcherbird has progressed to a 24-hour processing operation as part of scheduled ramp-up activities to accelerate production volumes to facilitate the first shipment.
First shipment from the company’s Butcherbird Manganese Project material to offtake partners is expected in June 2021.
Funds will be used for the planned stage-2 expansion of manganese concentrate production from the Butcherbird Manganese Project.
In-specification 30-35% manganese concentrate has been produced early in the commissioning program at the site.
Proceeds will also allow the company to put a dedicated team in place to accelerate the flowsheet and plant design work to produce High Purity Battery-Grade Manganese Sulphate (HPMSM) for New Energy Vehicles.
The company plans to accelerate work on its lithium-ion battery-grade manganese sulphate flowsheet and expansion of manganese concentrate production volumes from the Butcherbird Project.
This is the first stage of a multi-stage development strategy for the project, which will be expanded to produce high purity manganese sulphate monohydrate for EV batteries
The work plan has dry commissioning scheduled for the first half of March 2021 followed by wet commissioning and first ore processing in the second half of the month.
The project now has a clear runway to completion, with construction continuing to schedule.
Shares have risen by nearly a quarter since the end of 2020, as the company progresses development of its Butcherbird Manganese Project in Western Australia.
Rare earths & specialist minerals
The final quarter of 2020 has seen ongoing, rapid progress for the company as it moves towards delivery of a low-capital-cost early cashflow stage-1 operation exporting manganese concentrate form the Butcherbird Manganese Project.
Rare earths & specialist minerals
The company plans to integrate renewable energy into the power solution over time at the Butcherbird Manganese Project to target a zero-carbon footprint, which is expected to also reduce energy costs.
The recently updated PFS has highlighted the growth potential of the project with compelling base case and expansion case economics.
With Chinese manganese production expected to slow, Australian companies could be well-placed to benefit from recent price hikes.
The 30-day exclusivity extension to January 10, 2021, is to allow sufficient time for the definitive documents to be finalised.
The works approval and mining proposal have been approved by the relevant State Government departments and permission obtained from the State Mining Engineer.
The non-binding term sheet provides an exclusivity period until June 30, 2021, during which the parties expect to finalise the definitive agreements.
