Materials

Technology Metals is 'all-things-go' on WA vanadium project with final decision by 2023

Fri 05 Aug 22, 12:28pm (AEST)
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Key Points

  • Technology Metals to make a development decision by December
  • Company will sell ilmenite at first, offering it a revenue stream while development of the vanadium resource continues
  • Technology Metals is seeking to use Australian vanadium in BESS battery assets

A study launched back in July has wound up for Technology Metals, (ASX:TMT) giving its two-pronged Murchison tech metals project a resource of over 44.48 million tonnes of ore containing vanadium. 

The company will partner up with LE Systems to use its vanadium in Australian batteries within grid-scale energy storage applications.

Vanadium metal, in the form of vanadium electrolyte, is being added to the battery assets in ongoing trial runs

LE System will provide its expertise in creating vanadium electrolyte from the ore shipped from Murchison, where the company already owns a plant designed to make it. 

Based on the results of today’s integrations study, management has started hunting for a firm to update the economics surrounding the project and lead the company towards a final development decision before December. 

A map detailing the acreage, with resource information attached, underpinning the project
A map detailing the acreage, with resource information attached, underpinning the project

A look at specifics 

The study released today gives the project the following creds: 

  • Average annual earnings of $182m 

  • 25-year life of mine revenue of $8bn

  • Ilmenite production rate of 96,500tpa in first stage

  • Project valued at $942m 

  • Internal rate of return of 23%

While it develops its vanadium mine, Technology Metals will commence the mining and selling of ilmenite to Asian customers for use in industrial dyes. The company believes the product will reel in US$310/tn. 

Once the vanadium operations go live, the material will be trucked to Fremantle Port for export, while ilmenite in the earlier stages will be trucked north to Geraldton under the direction of KOP Ventures, the company’s project subsidiary. 

A further raft of information surrounding the project’s economics is slated to be released before the end of the year. 

Technology Metals on the radar this year 

As investors retain enthusiasm for battery metals projects (as well as projects seeking metals to be used in electrification initiatives,) Technology Metals has landed on more than one radar this year. 

Case in point: year to date (YTD) performance is up 29.3% (though, for long-term shareholders, one year returns currently top out at 8%). 

The company boasts a market cap of $78.6m and is ranked 265 of 911 companies in the materials sector. 

At the end of the June quarter, the company held $18.6m in cash.

Disclaimer: Market Index helps small-cap ASX listed companies connect with Australian investors through clear and concise articles on key developments. Technology Metals was a client at the time of publishing. All coverage contains factual information only and should not be interpreted as an opinion or financial advice.

 

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Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication. Email Jon at [email protected].

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