Neometals Releases Positive Pre-Feasibility Study Results for Barrambie Titanium Project

Neometals Ltd (ASX: NMT, AIM: NMT) has announced the completion of an updated pre-feasibility study (PFS) for its 100% owned Barrambie Titanium Project in Western Australia. The PFS outlines a capital efficient, staged development approach to produce Direct Shipping Ore (DSO) and Mixed Gravity Concentrate (MGC) from Barrambie.

The initial stage requires $78.1 million in capital to produce 1 year of DSO from mining, crushing and screening activities. This will generate cashflow to fund the next stage of $137.2 million to construct a crush, mill, beneficiate plant to produce MGC for a further 12 years. The PFS demonstrates robust economics for Barrambie including an NPV of $375 million and IRR of 45%.

Importantly, the PFS supports Neometals' strategy to supply titanium feedstock to offtake partner Jiuxing Titanium Materials, one of China's largest titanium slag producers. An offtake agreement is expected to underwrite initial production from Barrambie. The project will produce a saleable titanium product from Barrambie to capitalise on forecast supply deficits and rising prices for titanium feedstocks.

The results validate Neometals' core focus on recovering and commercialising battery materials from its projects. With granted mining permits and strong economics, Barrambie is poised to add significant value for Neometals shareholders if development proceeds. The PFS is a crucial milestone that significantly de-risks the project and enhances funding options. Investors should watch closely as Neometals advances Barrambie towards a final investment decision.