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Neometals (ASX:NMT) - Managing Director & CEO, Chris Reed
Managing Director & CEO, Chris Reed
Source: Business News
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  • Neometal’s (NMT) pre-feasibility study is said to put up a strong case for its joint venture vanadium recovery project in Finland
  • The company is currently undergoing a joint evaluation for the feasibility of constructing a facility to process and recover high-grade vanadium chemicals from vanadium-bearing steel making by-product
  • Neometals said it is “extremely encouraged” by the outcomes of the study, affirming it highlights robust economic margins with a first quartile position on the operating cost curve
  • As a result, Neometals is funding the next stage of evaluation studies which will look to complete a pilot plant
  • Neometals shares are up 4.95 per cent following the announcement, trading at 53 cents

Neometal’s (NMT) pre-feasibility study is said to put up a strong case for its joint venture vanadium recovery project in Finland.

NMT and unlisted Scandinavian company Critical Metals, are jointly evaluating the feasibility of constructing a facility to process and recover high-grade
vanadium chemicals from vanadium-bearing steel making by-product.

Neometals has the right to enter a 50:50 incorporated joint venture with Critical Metals subject to funding certain evaluation studies.

Neometals said it is “extremely encouraged” by the outcomes of the PFS, which it affirms highlights robust economic margins with a first quartile position on the operating cost curve.

In addition, the ASX-lister claimed the PFS supports its strategy to pivot towards more sustainable materials recovery and recycling projects to complement its upstream mineral projects.

The company tabled an annual production of 13.4 million pounds of high-purity vanadium pentoxide secured by 10-year supply agreement with Scandinavian steelmaker SSAB.

As a result, Neometals is funding the next stage of evaluation studies, which will look to complete a pilot plant before commencing a Class three AACE Feasibility
Study.

In turn, Critical is expected to advance government and environmental approvals for the Vanadium Recovery Project and manage the SSAB relationship.

Completion of pilot plant trials and award of the feasibility study is said to be on schedule for July 2021 to enable potential final investment decision in the second half of 2022.

Neometals shares are up 4.95 per cent following the announcement, trading at 53 cents at 12:23 pm AEST.

NMT by the numbers
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