Neometals
Primary ticker: ASX: NMT, AIM: NMT, NYSE: RDRUY
Stage of development: Development, Production
Primary minerals: Battery Materials, Precious Metals, Lithium
Project to promote: Lithium-ion Battery Recycling via Primobius JV
Project location: Germany, USA
Website: www.neometals.com.au
Neometals facilitates sustainable critical material supply chains and reduces the environmental burden of traditional mining in the global transition to a circular economy.
The Company is commercialising a portfolio of sustainable processing solutions that recycle and recover critical materials from high-value waste streams.
Neometals’ core focus is on the commercialisation of its patented, Lithium-ion Battery (“LiB”) Recycling technology (50% NMT), under a plant supply and technology licensing business model. Primobius GmbH is the 50:50 incorporated JV with 150-year-old German plant builder, SMS group GmbH, that is commercialising the technology. Primobius is building a 2,500tpa recycling plant for Mercedes-Benz under a long-term Cooperation Agreement. It also operates its own LiB disposal service in Germany and plans to offer its first commercial 21,000tpa plant to North American licensee, Stelco, in JunQ 2025.
Neometals is also developing two advanced battery materials technologies for commercialisation under low-risk, low-capex technology licensing business models:
• Lithium Chemicals (70% NMT) – Patented ELi™ electrolysis process, co-owned 30% by Mineral Resources Ltd, to produce battery quality lithium hydroxide from brine and/or hard-rock feedstocks at lowest quartile operating costs. Pilot scale test work and Engineering Cost Study update planned for completion in DecQ 2024; and
• Vanadium Recovery (100% NMT) – Patent pending hydrometallurgical process to produce high-purity vanadium pentoxide from steelmaking by-product (“Slag”) at lowest-quartile operating cost and carbon footprint.
Cash: AUD$14M (31 March 24)
Debt: NIL
Major shareholders:
Deutsche Borse 5.0%
Citicorp Nominees 4.7%
David Reed 4.4%
Farjoy Pty Ltd 2.9%
BNP Paribas Nominees 2.2%
Management Ownership – 2.2%
Financials
Management Profile
Jeremy McManus – General Manager – Commercial and IR
Jeremy has 20+ years’ experience in the technology materials and minerals sectors. Jeremy has occupied business development roles in the energy transition space and held corporate finance and funding advisory positions in the investment banking and accounting sectors. His Neometals’ role sees him sit across corporate strategy and communications, IP Management, ESG, commercial negotiations and capital markets.
What is your rationale for taking part in 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?
Mercedes – Benz Battery Recycling Plant Purchase Order
August 23, 2023
Primobius – Life Cycle Assessment Results
December 19, 2023
Mercedes-Benz Battery Recycling Plant Purchase Order
January 10, 2024
Quarterly Activities Report – March 2024
April 24, 2024
What are your key goals in 3 months, 6 months, 12 months?
3 Months:
Continued construction and commissioning of Mercedes pilot recycling plant
Completion of testwork on precious metals opportunity in the USA
Ongoing testwork as part of the Lithium Chemical BU pilot program
Progress on upstream asset sale processes
6 Months:
Acceptance testing of Mercedes recycling spoke facility
Completion of Lithium Chemical pilot and associated feasibility work
Progress on upstream asset sale processes
Continued construction and commissioning of Mercedes pilot ‘Hub’ recycling plant
12 Months:
Preparation activities associated with offer of integrated industrial scale recycling plant to Stelco in North America
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 = industrial validation with Mercedes at its pilot facility in Germany
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. Clear Strategy – to focus on providing sustainable processing technologies for producing critical materials, into a vast growing TAM driven by the energy and policy tailwinds
2. Environmentally Friendly – proprietary processes utilising high-value waste and non-conventional feedstocks to reduce burden of traditional mining and processing.
3. Sustainable Competitive Advantage – leading operating cost and carbon footprint versus mined products.
4. Industrial Validation – from marquee customer Mercedes Benz, JV partner and global plant builder SMS group.
5. Smart Business Models – supplying turn-key plants under low-capital, low-risk, technology licensing business model (plant supply enables customer profit centres).
6. Diversification – multiple exposures to the energy transition and critical materials
What are the top 3 key investor takeaways?
1. Developing sustainable processing solutions for customers that bypasses the need for mining
2. Flexible business models with low capex focus on technology licensing
3. Industrial validation of recycling technology with Mercedes