NEOMETALS

Neometals Ltd

The evolution of lithium
Company Exposure

Lithium

Company Listing

Neometals Ltd

Stock Code

ASX:NMT, OTC:RDRUY

Company Overview



Neometals Ltd (ASX: NMT, OTC: RDRUY) is a Western Australian minerals project developer with interests in lithium, titanium, vanadium and nickel projects. The Company is primarily focused on its Mount Marion and Barrambie projects. Neometals is developing itself in multiple positions in the Lithium-Ion battery commodities supply chain through its 3 key business units – Lithium, Titanium, and Technology.

Investment Proposition

  • Undervalued lithium producer
  • Expected re-rating with consistent steady-state production
  • Cash, cash flow & growth
    • 13.8% cash flow from Mt Marion concentrates
    • Downstream conversion to LiOH
    • Technology: developing a diversified portfolio, licence potential
    • Secured strong partners for Neomet process
    • Titanium: The Big One, completed BFS
Corporate Strategy

Live Financials

Latest Announcements

Share Price Performance

Team

Steven Cole – Chairman
Christopher Reed – Managing Director
David Reed – Non-Executive Director
Natalia Streltsova – Non-Executive Director
Doug Ritchie – Non-Executive Director

Major Shareholders

David Reed – 11.09%
Global Lithium ETF – 3.12%
Top 20 Shareholders – 38.2%

Projects Overview


Production – Mt Marion Lithium Operation

  • Mt Marion Lithium Project is located approximately 40km south west of Kalgoorlie, Western Australia
  • Jointly owned by Neometals Ltd (13.8%), China’s lithium producer Jiangxi Ganfeng Lithium Co., Ltd (43.1%) and a local mining services business (43.1%).
  • 400kt concentrates per year (~50kt LCE)
  • JORC Resource 77.8Mt @ 1.37% Li2O* across 6 deposits
  • 2HFY17 Production 156,000 dmt
  • 1QFY18 Production +100,000 wmt
  • FY18 Forecast 450,000t of 6% & 4% Li2O
  • 1HFY18 EBITDA A$72M** (100% basis)
  • C1 costs A$369/t CIF (~US$290/t)
  • Total costs A$460/t CIF (~US$360/t)
  • LOM Take or Pay Contract*
  • Price linked to International LCE price
Globally Significant Operation – 400kt concentrates pa (~50kt LCE)

Mt Marion Aerial January 2017 First ore to beneficiation

Downstream Processing – Kalgoorlie Lithium Hydroxide Facility

  • Conduct assessment of the technical and commercial feasibility of the construction and operation of a lithium chemical plant in the Eastern Goldfields of WA
  • Nameplate capacity of 20,000 tpa of lithium carbonate equivalent production, although smaller capacity is being assessed
  • Local plant to minimise transport from Mt Marion – 7t spodumene concentrate needed for 1t of LiOH
  • Conventional flowsheet – remove technology risk – speed to market
  • Utilise local natural gas, sulfuric acid, and workforce

Titanium – Barrambie Titanium Vanadium Iron Project

  • Plans to exploit one of the world’s highest grade hard rock titanium deposits
  • Beneficiate with a proprietary acid leach process to produce high purity TiO2, Fe2O3 and V2O5 from the Barrambie deposit.
  • The process route shows potential to operate at lowest quartile costs.
  • JORC Resource 48Mt @ 22% TiO2
  • Formal laboratory-scale test work in Canada has confirmed high-purity (>99%) TiO2 can be precipitated selectively from a leach solution at recoveries >90%
  • NEOMET PROCESS: 3 Product Efficiency
Globally Significant TiTANIUM Resource

Technology – Lithium Hydroxide Processing Technology – ELi Process

  • Purified LiCl is electrolysed using NMT’s 70% owned and patented “ELi Process” to produce battery quality LiOH.
  • Potential to operate at lowest quartile costs for LiOH.
  • Input: 147,000t of 6.0% Li2O
  • Output: 10,000t of Battery Grade LiOH, and 8,810t of Battery Grade Li2CO3
  • Cost: US$83m (located in Malaysia)
  • NPV: US$321m using 12% discount rate, IRR: 94%, payback: ~2 years
  • OPEX: LiOH US$3,800/t – Li2CO3 US$4,500/t
  • Potential to deploy on both hard rock and brines
  • Potential licence income

Contact Details

WEBSITE: www.neometals.com.au

EMAIL: info@neometals.com.au

PHONE: +61 8 9322-1182

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