Why did Neometals (ASX:NMT) shares close over 13% lower today?

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Why did Neometals (ASX:NMT) shares close over 13% lower today?

: Neometals Limited
Image source: © Kenishirotie | Megapixl.com

Highlights 

  • Shares of NMT closed at AU$1.3 each today, down 13.3% from the previous close.
  • NMT had been recently experiencing price volatility with frequent price drops and gains on the ASX.

ASX listed minerals and metals company Neometals Limited’s (ASX:NMT) shares closed 13.3% down at AU$1.3 today (25 January).

Today’s closing price represents a 30% drop from its 52-week high of AU$1.85 recorded during intraday trading on 20 January 2022.

It has been observed that NMT had been recently experiencing price volatility with frequent price drops and gains on the ASX.

The price volatility has been witnessed post the company ended the year 2021 with an announcement that resulted in a more than 18% hike on share price.

On 31 December 2021, the company announced that its joint venture company Primobius Inc, has signed a binding option and licencing agreements with Canadian firm Stelco Inc. a step towards commercialisation of its recycling technology into North America, Primobius has granted Stelco sole permission and a licence to use its LIB recycling technology.

Also Read: Neometals (ASX:NMT) strikes deal with Stelco, shares zoom up on ASX

The month of December also saw the company making considerable strides in its business. In December 2021, Neometals Ltd and Mineral Resources Limited (ASX: MIN), through its wholly owned subsidiary Process Minerals International, announced that their JV firm Reed Advanced Materials Pty Ltd had signed a deal with Portugal's largest chemical producer Bondalti Chemicals, S.A. The agreement intends to assess the commercialisation of the company's ELi lithium process in Europe.

The other developments in 2021 include commissioning of lithium-ion battery recycling demo plant, Mt Edwards nickel demerger update, completion of gold rights acquisition, lithium-ion battery recycling - MOU with Stelco for North America, among others.

NMT

Source: © Dashark | Megapixl.com

Road Ahead

In its latest AGM report, NMT highlighted its intention to get listed on AIM in 1Q22.

NMT mentioned working on three major projects that are expected to reach final investment decisions (FIDs) in 2022.

Lithium-ion Battery Recycling: It is a patented method for extracting lithium, nickel, cobalt, and other precious metals from waste and trash lithium batteries.

The company is planning to make a development decision during the March quarter of 2022.

Vanadium Recovery: A sole supporting evaluation studies in order to construct a 50:50 joint venture with Critical Metals Ltd to recover high-purity vanadium pentoxide from SSAB's processing by-products (Slag). Neometal plans to make an investment decision to build a 200,000tpa processing plant in the December quarter of 2022, backed by a 10-year Slag supply deal.

Barrambie Titanium and Vanadium: Working towards a development decision in mid-2022 with potential operating JV partner IMUMR and potential cornerstone product off-taker Jiuxing Titanium Materials Co.

Bottomline

Although the share was meagre today, let’s hope the company regains its lustre on ASX, on the back of 2022 endeavours, as cited in its corporate reports.

Also Read: Why is Global Lithium (ASX:GL1) on investors’ radar today

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