Neometals (NMT) - Chinese Off-Take on 2nd Highest Grade Titanium Asset

Neometals Limited is a mineral and advanced material company involved in the recycling, and production of high-grade lithium and vanadium. The company was founded in 2001 and is headquartered in Australia. Alphamet Management Pty. Ltd, Mount Finnerty Pty. Ltd., Reed Advanced Material Pty. Ltd., Mt. Edwards Lithium Pty. Ltd., Barrambie Gas Pty Ltd., and Inneovation Pty. Ltd (formerly Australian Vanadium Exploration Pty. Ltd.), are the companies' subsidiaries.

Neometals CEO Chris Reed discusses the RBC battery conference and the company's recent announcement about the Barrambie titanium deposit, according to a recent interview with Crux Investor. 

Battery Conference

The RBC battery conference, which had 350 attendees including investors, banks, and governments, provided an opportunity for Neometals to showcase its Barrambie asset, which is the world's second highest grade titanium deposit. With 280 million tons of titanium resource and over 1000 drill holes, Barrambie is a large titanium resource with high competitive tension. The initial sales plan won't affect the resource, and the China market is opening up.

Reed also discussed Neometals' strategy for generating cash flow while building the concentrator, which involves lower margin optionality for future integration. This strategy de-risks the mine and generates cash flow for the company, which can be used to fund further expansion. Neometals is also negotiating prepayments to alleviate capital raises for new projects, and the board is open to options for shareholder benefit.

Timeline of the offtake deal

The interview also discussed the shifting market for titanium production, with increasing amounts of titanium going into airplane frames and other metal products. Neometals has secured off taker Jiuxing as a key supplier to Boati, the world's largest titanium metal producer, which needs minimum volume and time to reduce capex. This allows Neometals to mine, crush, screen, and truck it while Boati does the rest.

For retail investors interested in mineral resource companies, the insights from the Crux Investor interview with Neometals' CEO Chris Reed provide valuable information. With the potential for expansion, negotiation of prepayments to alleviate capital raises, and the growing market for titanium production, Neometals may be an attractive investment opportunity for those looking to invest in mineral resources.

To find out more, go to the Neometals website