Neometals pursuing multiple positions in the lithium supply chain
The company is in the process of demerging its titanium and vanadium assets.
Company
ASX:NMT
Neometals Ltd is leveraging its proprietary, green process technologies to generate battery materials projects with unparalleled exposure to commodities most impacted by the energy storage megatrend. The company builds value, de-risks and develops these long-life projects with strong partners having a strategic focus on increasing margins through integration down the value chain. Neometals has a growing suite of sustainable downstream, recovery and recycling projects, supporting the global transition to more circular supply chains and cleaner energy.
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The company is in the process of demerging its titanium and vanadium assets.
In a demerger, Neometals shareholders would receive shares in the new ASX company.
12-month target price of 42 cents, an upside of about 45% based on the current share price of 29 cents.
Barrambie is one of the world’s highest grade hard rock titanium deposits.
155% increase in contained nickel from Neometals' maiden April 2018 resource.
The company agreed to pay $2.5 million for the package in March 2018.
A lithium discovery could have synergistic benefits for Neometals.
The site is located 70 kilometres by road from the Mt Marion lithium operations.
Shareholders on the register as at June 1 will be entitled to the dividend.
The Medcalf prospect adds to potential of the company’s Lake Johnson Lithium Project in the Yilgarn Block.
Hardware & electrical equipment
Value-adding proposals present more opportunities for lithium explorers, developers and producers.
The company will be turning a profit as plenty of other players in the sector are a long way from generating first revenues.
A recent resource upgrade multiplied the estimated amount of titanium and vanadium at Barrambie.
Recent test results already have validated the high-purity lithium hydroxide process.
The acquisition is strategic in nature and the tenure could host a potential lithium hydroxide facility.
The tenement package is located 40 kilometres from the Mt Marion Lithium Project.
The titanium resource is 2.4x larger and the vanadium resource is 4x larger.
High-purity lithium hydroxide is suitable for use in the lithium-ion battery sector.
During March the company commenced a US and UK roadshow.
The project is near the Mount Marion lithium mine in which Neometals has a 13.8% equity stake.