Neometals
Financials:
Primary ticker: ASX:NMT, AIM:NMT, NYSE:RDRUY
Stage of development: Development, Production
Primary minerals: Battery Minerals, Vanadium & Titanium
Project to promote: Lithium Battery Recycling Project
Project location: Germany
Website: www.neometals.com.au
Neometals innovatively develops opportunities in minerals and advanced materials essential for a sustainable future. We leverage our proprietary, green process technologies to generate battery materials projects with unparalleled exposure to commodities most impacted by the energy storage megatrend.
We build value, de-risk and develop these long-life projects with strong partners having a strategic focus on increasing margins through integration down the value chain. We have a growing suite of sustainable downstream, recovery and recycling projects, supporting the global transition to more circular supply chains and cleaner energy. Our core projects are:
Downstream Materials Processing:
• Lithium-ion Battery Recycling – commercialising a proprietary process for recovering nickel, cobalt and other valuable materials from spent and scrap lithium-ion batteries through a 50:50 incorporated JV with SMS group called Primobius GmbH. Primobius is targeting commencement of 10tpd principal German commercial operation during MarQ 2022. Development decision on larger 50tpd plants in July 2022;
• Vanadium Recovery – sole funding evaluation studies for a 50:50 joint venture with Critical Metals Ltd to recover high-purity vanadium pentoxide from processing steelmaking by-products (“Slag”) from leading Scandinavian steelmaker SSAB. Underpinned by a 10-year Slag supply agreement, Neometals is targeting an investment decision to develop a 200,000tpa processing plant in DecQ 2022; and
• ELi® Lithium Process- commercialising a proprietary process to produce lithium hydroxide from lithium solutions (lithium chloride) using electrolysis to avoid costly and carbon intensive reagents used in traditional chemical conversion. Technology 70:30% owned by NMT and Mineral Resources Limited. Bondalti Chemicals S.A is co-funding and piloting the process in Portugal . Development decision 2023.
Upstream Mineral Extraction:
• Barrambie Titanium and Vanadium – one of the world’s highest-grade hard-rock titanium-vanadium deposits. Working towards a development decision in 2022 with potential operating JV partner IMUMR and potential cornerstone product off-taker, Jiuxing Titanium Materials Co.
Cash: AUD$65.2M (31 March 2022)
Debt: Nil
Major shareholders:
David Reed (Founder) – 6.5%
Clearstream/Deutsche Börse – 2.9%
Management Ownership – 2%
Management Profile
Jason Carone – Chief Financial Officer and Company Secretary
Jason holds a Bachelor of Commerce in Accounting and Business Law from Curtin University and is a member of the Institute of Chartered Accountants, and Chartered Secretaries. He has over 20 years’ experience in accounting, company administration in Australia and South East Asia across a broad range of industries. Jason has been with Neometals for 14 years.
Jeremy McManus – General Manager – Commercial and IR
Jeremy has 20+ years’ experience in the resources and technology materials sectors. More recently Jeremy has been engaged in Commercial and IR roles for advanced materials companies and earlier employment included corporate finance and funding advisory in the investment banking and accounting sectors. Having attained MBA and postgraduate finance and qualifications, Jeremy is well versed in corporate strategy, technology commercialisation, capital markets and IP management.
What is your rationale for taking part 121 Mining Investment?
We are looking to connect with institutional and private investors to raise awareness on Neometals activities.
What recent news would you like to highlight to investors attending?
31/12/21 Lithium Battery Recycling – Primobius Enters Nth America with Stelco for Recycling of EV Batteries
• Primobius executes agreements to commercialise its recycling technology into North America, the fastest growing lithium battery production region, with leading Canadian steelmaker Stelco Holdings Inc. (TSX: STLC);
• Stelco plans to secure large volumes of end-of-life vehicles to source scrap steel feedstocks and recycle lithium-ion batteries in a proposed 50tpd integrated operation at its Lake Erie Works;
• Primobius will licence a Stelco battery recycling special purpose vehicle and hold an option to acquire between 25% and 50% equity by contributing its pro-rata share of sunk evaluation and development costs; and
• Allows Stelco to focus on feedstock and approval activities and Primobius on its demonstration trials, engineering studies and 10tpd commercial disposal operation in Hilchenbach, Germany.
14/3/22 Lithium Battery Recycling – Primobius Recycling Cooperation with Mercedes Benz
• Mercedes-Benz AG (“Mercedes-Benz”), made a press release regarding its global strategy for recycling automotive battery systems, which includes a recycling plant at its Kuppenheim operations in Southern Germany;
• Mercedes-Benz subsidiary LICULAR GmbH (“LICULAR”) plans to cooperate with Neometals’ battery recycling JV, Primobius, as its technology partner, for the design and construction of the proposed recycling plant; and
• Primobius is in advanced discussions with Mercedes-Benz regarding the design and construction of a 2,500 tpa lithium-ion battery recycling plant for LICULAR’s facilities
22/04/22 Lithium Battery Recycling – Primobius Receives German Operating Permit
• Neometals recycling JV, Primobius, secures commercial lithium battery recycling permit “BlmSchG”;
• Federal operating permit enables commencement of commercial operations in Hilchenbach, Germany;
• Cornerstone battery feedstock comprised of batteries from electric vehicles; and
• First black mass product delivery to German off-taker expected next week.
What are your key goals for the next 3, 6 and 12 months?
3 Months:
Commencement of commercial recycling operations in Hilchenbach Germany
Recycling ECS Feasibility Results
FID on 20ktpa integrated recycling operation with Stelco in North America
ELi class 3 ECS
6 Months:
Further recycling collaborations and partnerships
Class 3 feasibility study for the VRP
ELi pilot trials in Portugal
Barrambie bulk sample smelting trial results
Progress on Mercedes cooperation and pilot equipment supply packages
12 Months:
VRP FID
ELi class 2 FEED study
Barrambie offtake
Progress on Mercedes cooperation
Consistent revenue generation from recycling activities
What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?
Scale up technical risk. Mitigation = demonstration trials.
Unfavourable commodity prices. Mitigation = diversified assets and commodity focus.
Dysfunctional capital markets, inability to raise capital/debt when required. Mitigation = partnering model, track record of project execution success.
What do you think makes your company such a compelling investment?
1. Diversified ESG aligned battery materials portfolio with investment decisions from 2022
2. Strong Board and management with a track record of project execution and shareholder return
3. Clear strategy with a proven, replicable and sustainable ‘project development’ model
4. Key projects leveraging strong innovation expertise being co-funded with leading global partners
5. Strong balance sheet to fund developments
6. Strong Growth Potential
What are the top 3 key investor takeaways?
Growth potential in global megatrend
Track record / experience
Mature development status with majority deep pocketed tier one partners