REG - Neometals Ltd - Chairman's AGM 2023 Address

NeometalsAnnouncement

24/11/2023 12:30

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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™ 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™ 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
(http://www.neometals.com.au/)

 

 

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