Pure Minerals Share Price Over 20% with Positive Scoping Study Results

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Small-cap metals explorer Pure Minerals Ltd [ASX:PM1] has made some headway in the market today, after announcing ‘outstanding results’ from their scoping study for High Purity Alumina (HPA).

The study was commissioned by PM1’s wholly-owned subsidiary Queensland Pacific Metals Pty Ltd.

The aim was to determine if HPA could be a viable co-product for the Townsville Energy Chemicals Hub (TECH Project).

The pre-feasibility study conducted in December last year identified HPA as a ‘key value-add opportunity’ for the TECH Project.

Today’s results confirmed such value, with a forecast production of over 4,000tpa HPA for the site.

PM1 shares have surged 21% today in response.

Key takeaways

The scoping study’s findings are based on an estimated plant design life of 25 years.

Highlights include:

  • Estimated annual revenue of $147.3 million
  • Estimated annual operating expenditure of $18.1 million
  • Estimated post-tax Net Present Value (8% discount rate) of $849 million
  • Lower CAPEX and OPEX compared with other HPA projects due to the starting input being aluminium hydroxide
  • Increasing use of HPA in the production of separators in anode and cathode batteries

PM1 Managing Director John Donne commented:

The TECH Project is becoming a one-stop shop for battery manufacturers.

Nickel sulphate, cobalt sulphate and HPA are key chemicals required by the battery industry and our potential ability to supply meaningful quantities of all these products will increase our appeal as a supplier to battery manufacturers.’

If you are unfamiliar with these ‘next-gen’ battery resources, check out this video explaining why lithium is losing its charge in the battery game. Watch it here.

What this means for Pure Minerals

Today’s share price spike has made a new 12-month high for Pure Minerals, at 2.3 cents.

It is certainly exciting news that PM1 can add HPA to their battery metals arsenal.

By 2028, market demand for HPA is expected to grow to 272,000tpa, driven by increased worldwide adoption of LEDs as well as a surging electric vehicle market.

PM1’s TECH Project also produces 25,000 tones of nickel sulphate and 3,000 tonnes of cobalt sulphate a year, making it a worthy next-gen battery metals miner.

Again, if you’re still unaware of this battery revolution, check out this video here.


Imogen van der Meer,
For Money Morning

About Imogen Van Der Meer

Imogen is a research analyst at Fat Tail Investment Research, she holds an RG146 certification in securities and is currently completing a Masters Degree at the University of Melbourne. She has a particular interest in fintechs and the exciting innovations coming out of ASX-listed small caps.

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