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