Neometals Limited (ASX: NMT) announced its successful commissioning of its lithium?ion battery (“LIB”) recycling pilot plant (“Pilot”) in Canada.
SGS Canada Inc. (“SGS”) had been awarded the contract to construct and operate the pilot plant. It has the expertise to build world?class hydrometallurgical processing and purpose?built facilities for optimization, development, and piloting of mineral processing and chemical extraction processes.
SGS had been involved by NMT to undertake the operation of Pilot front? end feed preparation which would be carried on in two stages. Stage (1) would comprise of shredding, removal of metal casings and plastics. Stage (2) would be the the subsequent hydrometallurgical processing and refining phase to deliver high?purity battery materials for market qualification.
The Pilot is envisioned to demonstrate and showcase Neometals’ mixed feed flowsheet which can accommodate a variety of LIB types from multiple sources including electric vehicle batteries, consumer electronics, and the emerging stationary storage sector. It aims to verify assumptions made at bench scale, generate marketing samples of products and provide important data required for a front?end engineering design study (“FEED”) for an investment decision on a commercial plant which will comprise 80% of costs at an early development stage.
As per the timeline of the NMT’s LIB recycling program in Canada, the comminution will be executed by Feb 2019, leaching by March/April 2019, purification by May/June/July 19, Feed study commencement by July 2019, Feed study results and FID by December Q 2019, and commercial plant or construction, to be completed in the next nine months.
Neometal’s revenue model comprises of potential earnings from the three participants value chain. The first would be parties seeking a disposal/recycling service of electric vehicle and consumer electronics makers or their battery manufacturers who need to acquit for end of life of LIBs or recycle off spec and warranty claim cells. Second would be the LIB collectors or aggregators which comprise a range of transfer stations as well as scrap merchants who are accountable for collecting, sorting and overseeing LIB logistics for reprocessing and the third would be LIB recycling proponents who licence the technology in jurisdictions.
LIB demand is expected by various analysts to reach multi-fold due to capex to produce refined chemicals used in battery electrodes, the arrival of deadlines set by countries and vehicle manufacturers to phase out ICE vehicles, sticker price parity for electric and ICE vehicles and commissioning of the next trend of planned LIB mega?factories.
Neometals Ltd is an ASX listed company with advanced materials projects and industrial mineral developer. Its two divisions (Vanadium?Titanium resource development business and an integrated Lithium business) are supported by propriety technologies which aids in downstream integration via revenue enhancement and cost efficiencies. It has a stake of 13.8% in the Mount Marion lithium mine near Kalgoorlie, which functions one of the world’s largest lithium concentrators. Its 100% owned Barrambie Titanium?Vanadium Project in West Australia’s Mid?West is one of the world’s highest?grade hard?rock titanium-vanadium deposits. Its annual profit for the FY18, ended 30 June 2018, from the continuing operations increased by 326% to A$20.2 mn from A$4.74 mn in FY17.
On stock information, Neometals last traded at A$0.200 as on February 12, 2019, with the market capitalization of A$108.79 mn. Its EPS for FY18 was 0.037 AUD, and its current PE is 5.360. Its absolute return for 3 months, 1 year, and 5 years are -23.08%, -46.67%, and 409.17% respectively.
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