Technology Minerals PLC (LSE:TM1), a frontrunner in the recycling and exploration sector, has recently unveiled its annual report and full-year results, showcasing a robust performance amidst challenging market conditions.
The CEO, Alex Stanbury, engaged in a comprehensive discussion with Thomas Warner from Proactive London, delving into the intricacies of the company’s progress, future prospects and the strategic merger on the horizon.
This interview provides a deep dive into the company’s recycling initiatives, particularly the lithium-ion battery recycling plant in Wolverhampton, and sheds light on the corporate strategies that are setting Technology Minerals on a path of innovation and growth.
Thomas Warner: We've got some news from you this week, or I should say your annual report and full-year results out just yesterday morning. So perhaps you can just give us your take on how you think the business performed over the last year?
Alex Stanbury: Indeed, we’ve navigated through a challenging year but managed to maintain a robust performance. The market conditions have been particularly tough for startup businesses, but we’ve made significant strides across all business segments of the group. I believe we have laid down a solid foundation that will propel us into a prosperous next year.
TW: Fantastic. So a lot of the focus from you guys, in our conversations, at least, has been on the recycling side of the business. So let's zoom in on that. How do you feel that it's been going at Recyclus?
AS: The progress at Recyclus has been exceptional. We started the year in anticipation of our environmental permits, which we have now successfully obtained. Our lead acid plant at Tipton has received its permits, and we are entering the commissioning phase, with plans to start generating cash in Q1. The lithium-ion battery recycling plant in Wolverhampton is also operational, having gone through an extensive commissioning phase. We are now in commercial production, stockpiling black mass for sale. The focus is on getting the plant up to its full capacity and extending operational hours.
TW: And of course, Alex, there is also a transaction in the offing as well. Tell us about that.
AS: Yes, that’s correct. Technology Minerals PLC (LSE:TM1) has invested in Recyclus and currently owns just over 48% of the business. We have made an offer to acquire the remaining shares in Recyclus Group. This transaction has been in the works for some time, and we are now in the final stages. The prospectus is with the Financial Conduct Authority (FCA), and we are awaiting shareholder approval in December. The merger is expected to complete in Q1, consolidating the cash generated by Recyclus up through the PLC.
TW: Alright, so just for the sake of clarity. Currently, when we talk about Recyclus, it's talked about as like a part of your business there, but would you rebrand it? Would you bring it more into the fold?
AS: Absolutely, that’s a great point. We are planning to change the name of the PLC from Technology Minerals to Recyclus Group PLC, with the ticker RG1. This represents a shift in focus, with a concentration on expanding our recycling efforts.
TW: Okay, then. Well, that leads us very nicely on, Alex, to the subject of your exploration assets, doesn’t it? So what’s been happening with those?
AS: Our exploration assets have been performing extremely well. They are capital-light and self-funding, which positions us strongly in the market. For the upcoming year, 2024, our focus is on cash generation, expanding our recycling capacities and completing the merger. We are committed to driving the company forward, leveraging our assets to their full potential.