TIDMNMT
RNS Number : 6359U
Neometals Ltd
24 November 2023
24 November 2023
Neometals Ltd
("Neometals" or "the Company")
Chairman's AGM 2023 Address
The past year has certainly been a challenging one for your
Company's share price performance, especially relative to the prior
period which witnessed impressive escalation in market value on the
back of the then current "lithium boom". But like many other booms,
they are often succeeded by a material decline. This one was no
exception with lithium commodity pricing declining around 70% over
the relevant period and vanadium commodity pricing declining around
50%. To put matters into direct focus, the NMT share price declined
from 91 cents at the start of FY 2022/2023 to 50 cents at the end
of that financial year. The last 5 months has seen a further
decline in market share price to its most recent levels.
These numbers are disturbing both for the Company's shareholders
and for your Company's Board which has been diligent in prosecuting
the Company's strategy across its portfolio of projects. Each
primary project is aligned with and seeks to leverage off the
globally relevant energy transition thematic coupled with the
sustainability of critical minerals through innovative recycling
technologies aimed at very competitive lowest quartile production
costs and CO(2) emissions footprints.
Our CEO Chris Reed will speak in more detail in his presentation
as to each of these primary projects, as well as a recent
interesting "back to the future" prospective development in the
Company's portfolio of interest. But for now, let me summarise
several relevant aspects as to NMT's current position:
1. The Company's businesses have always been at risk of adverse
commodity pricing movements. Both lithium (LiB recycling via
Primobius) and vanadium (vanadium recycling project in Finland and
to an extent Barrambie) commodity prices are currently relatively
materially impacted.
2. The stronger equity capital raising markets' support of
recent years has materially declined. And yes, in hindsight, your
Board accepts that the various decisions it has made to delay
capital raisings (all based on professional advice taken on each
occasion) may have turned out not to have best positioned the
Company given the current equity markets' position.
3. The Company's main LiB recycling business in Germany with SMS
through Primobius, and its ELi(TM) lithium processing project with
the Bondalti Group in Portugal, have continued to develop and
prosper.
4. Although the Company's other projects (vanadium recovery in
Finland and Barrambie) have recently faced headwinds, substantially
due to declining global commodity prices and parlous capital market
interest for such ventures, the underlying technology and business
assets have been materially progressed and remain with NMT for
future exploitation when commodity pricing and capital markets
better align in the future.
Your Company remains clear on its strategy and purpose:
delivering shareholder value through its continuing strategic focus
on these key thematics and its core projects, yet at the same time
being open
to other innovative opportunities that may arise.
NMT respects and supports its strong, committed and highly
valued workforce. It is their dedication and output that is
expected to allow your Company to continue to mature its technology
applications, develop its businesses and realise the opportunities
arising, which in turn should gain the market appreciation to drive
future shareholder value and return.
And finally in closing, I wish to acknowledge you, our
shareholders and broader stakeholders, who have held firm with the
Company through this roller-coaster share price ride over the last
few years. Your ongoing support is very much valued by the Company
and it is your Board's commitment to honour that support.
Steven Cole - Chairman
Neometals Ltd
Authorised for release to ASX by the Board of Neometals.
For more information, please contact:
Neometals Ltd
Chris Reed, Managing Director & Chief Executive
Officer +61 8 9322 1182
Jeremy McManus, General Manager - IP & IR +61 8 9322 1182
Cavendish Capital Markets Limited - NOMAD
& Joint Broker
Neil McDonald +44 (0)131 220 9771
Peter Lynch +44 (0)131 220 9772
Adam Rae +44 (0)131 220 9778
RBC Capital Markets - Joint Broker +44 (0) 20 7653 4000
Paul Betts
Jamil Miah
Camarco PR + 44(0) 20 3 757 4980
Gordon Poole
Emily Hall
Lily Pettifar
About Neometals
Neometals has developed and is commercialising three
environmentally-friendly processing technologies that produce
critical and strategic battery materials at lowest quartile costs
with minimal carbon footprint.
Through strong industry partnerships, Neometals is demonstrating
the economic and environmental benefits of sustainably producing
lithium, nickel, cobalt and vanadium from lithium-ion battery
recycling and steel waste recovery. This reduces the reliance on
traditional mine-based supply chains and creating more resilient,
circular supply to support the energy transition.
The Company's three core business units are exploiting the
technologies under principal, joint venture and licensing business
models:
-- Lithium-ion Battery ("LiB") Recycling (50% technology) -
Commercialisation via Primobius GmbH JV (NMT 50% equity). All
plants built by Primobius' co-owner (SMS group 50% equity), a
150-year-old German plant builder. Providing recycling service as
principal in Germany and commenced plant supply and licensing
activities as technology partner to Mercedes-Benz. Primobius
targeting first commercial 21,000 tpa plant offer to Canadian
company Stelco in the DecQ 2023;
-- Lithium Chemicals (70% technology) - Commercialising patented
ELi(TM) 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. Co-funding
Pilot Plant trials in 2023 with planned Demonstration Plant trials
and evaluation studies in 2024 for potential 25,000tpa LiOH
operation in Portugal under a 50:50 JV with related entity to
Bondalti, Portugal's largest chemical company; and
-- Vanadium Recovery (100% technology) - aiming to produce
high-purity vanadium pentoxide from processing of steelmaking
by-product ("Slag") at lowest-quartile operating cost. Targeting
partnerships with steel makers and participants in the vanadium
chemical value chain under a low risk / low capex technology
licensing business model.
For further information visit www.neometals.com.au
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END
MSCBIBTTMTBTBFJ
(END) Dow Jones Newswires
November 24, 2023 07:18 ET (12:18 GMT)
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