Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Giyani Metals plans to obtain premium prices for its manganese in the battery electric vehicle market

Giyani has a huge licence area in Botswana that's very prospective for high grade manganese
Giyani Metals plans to obtain premium prices for its manganese in the battery electric vehicle market
Giyani's manganese is high grade

“We are looking to establish ourselves as the leading independent supplier of high-grade manganese for the electric vehicle market,” says Robin Birchall of Giyani Metals Corp (CVE:WDG), which has more than 8,100 square kilometres of potentially manganese-rich ground in Botswana under licence.

Manganese is a key ingredient in the cathodes of two of the most prominent current electric vehicle battery types: the nickel-manganese-cobalt (NMC) battery, and the lithium-manganese-oxide (LMO) battery.

At the moment, NMC battery is setting the industry standard and is likely to be at the forefront for at least five or ten years. Refinements and new technologies will no doubt be developed along the way, but the cost of capital employed will mean that once the investment has gone in, it will be at least ten years until the industry switches out again into a different battery cathode chemistry.

“Whichever way you look at it, manganese is going to stay and cobalt is going to stay,” says Birchall.

He’s a seasoned mining analyst and knows a thing or two about commodity cycles. Since taking on the job at Giyani in November 2017, he’s now learning about automobile industry cycles too.

A safe bet?

He’s candid about the pros and cons of manganese in batteries.

The disadvantages are that it doesn’t have a high-power density (or power per unit volume), and that it’s quite heavy. But the advantages are that it has a very good safety profile. Remember all those stories a few years ago about lithium batteries catching fire? Manganese is helping keep those stories to a minimum.

“The battery which currently optimises safety and kilogrammes is the NMC battery,” says Birchall.

And he’s got a pretty good idea of where such batteries will find their optimum use: in urban transport.

“Take a London bus,” he says. “How far does it drive? Maybe it makes eight journeys a day on a full charge. If you charge it at the end of each journey and then overnight, that’s ideal for manganese batteries.”

But if London is a hypothetical example, there’s a tangible one to be had too, from halfway round the world.

“There are now 375,000 electric buses in China,” says Birchall. “There are less than 5,000 in the whole of Europe.”

Not all applications are appropriate for manganese batteries. They probably wouldn’t suit heavy good vehicles. But on the other hand, they are ideal for the new generation of energy-storage systems being developed for home use. Since these batteries remain stationary, the weight of the manganese is less of an issue.

“The unit size can be relatively large,” says Birchall.

With all this in mind, Giyani plans to advance its three main prospects in Botswana as quickly as possible.

“We hope to have a resource out in mid-July,” says Birchall, “and at the same time we’re doing metallurgical work to help us find the right process to develop our ore into a battery grade material.

The results from that work will be out in July too.

After that a preliminary economic assessment will get underway in July or August, using a ballpark production rate of 110,000 tonnes per year.

While all that’s going on, negotiations with manganese traders for the sale of some direct shipping ore will continue. If those prove fruitful then Giyani will benefit from early cash flow and shareholders will be spared the distress of excessive dilution.

The Company’s leading prospect, K. Hill, has been mined before, and produced high value manganese oxide nodules. Preliminary results from the on-going drilling program at K.Hill have indicated that this deposit has still a lot of manganese left in it.

Manganese for batteries commands a premium of seven or eight times over product that’s used in steel, so high grades will allow for increased margin on an already attractively priced product.

Giyani is well on the way. The upcoming results will be closely watched.

View full WDG profile View Profile

Giyani Metals Corp Timeline

Related Articles

1530643627_electric-car.jpg
July 03 2018
The company’s goal is to be a leader in the battery metals sector, with cleaner cobalt in Australia
1537405776_PSM-Gapyeong-targets.jpg
September 20 2018
The company is hoping to mine its graphite flake, see it turned into concentrate, then produce spherical graphite to supply Korean lithium-ion battery-makers.
1532518239_Vanadium-electrolyte-batteries.jpg
September 13 2018
The vanadium price is riding high, and so is Bushveld Minerals

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use