AustralianStrategic Materials set for further growth after stellar start on ASX
The company has been a major success story and has hit several keymilestones as it moves towards becoming an independent fully integratedmine-to-metal producer of critical materials.
ASM’s cornerstoneDubbo Project has a long-term resource of critical materials.
AustralianStrategic Materials Ltd (ASX:ASM) has had a stellar start since listing on the ASX five months ago setting it up for further growth in 2021 by adding further value to critical materials from the flagship Dubbo Project in Central West New South Wales.
The company has been a major ASX success story in the second half of theyear.
From 84 cents on August 4, shortly after listing on July 30, shares haverisen more than eight-fold to a new record of $6.84 today while the market capalso continues to shine and today sits at approximately $802.4 million.
Success has largely come from the technology of Korean subsidiaryZironTech which is being used to produce high-quality metals for use indeveloping technologies, such as those increasingly in demand for electricvehicles, sustainable green energy production & storage and new-agemagnets.
Program for next six months
Continuing its focus on progressing the Dubbo Project, the company aimsto complete project optimisation in the next six months.
The flagship project has a long-term resource of critical materialsincluding zirconium, rare earths, niobium and hafnium, used mainly insustainable technologies, new manufacturing industries, renewable energy and EVproduction.
ASM, together with its partners, is advancing oxide separation andmetallisation technologies to create a range of value-added materials from theproject.
At the same time, it will progress offtake and strategic partnerdiscussions while finalising EPC/EPCM financing for the project.
Korean plant
Building on recent success in producing high-purity metal alloys ofdifferent dimensions and weights at a pilot plant, the company will alsoaccelerate the development of a larger metals plant in Korea through itsagreement with Dongkuk Refractories and Steel Co Ltd (DK R&S).
The plant is designed to produce 250 kilograms of neodymium-praseodymium(NdPr) metal, which can be turned into sintered permanent magnet samples inpartnership with the Korean Institute of Rare Metals (KIRAM) for the Koreanmarket.
ASM’s metallisation process and pilot plant have significantenvironmental advantages over industry-standard processes, emitting far lessenergy.
THE ASM and ZironTech teams in SouthKorea.
Future work to consolidate success
The company, through its patented technology, aims to engage countrieslike Korea which are moving away from less sustainable traditional productionmethods.
This is in line with the Korean Transition Independent Supply ChainStrategy which is expected to be completed by mid-2023.
By this time, ASM also expects to have completed construction of theDubbo Project and be in the process of ramping up production with commissioningtargeted for 2024.
Niche high-value segments
The company aims to provide value-added materials to produce rare earthpermanent magnets, for which demand and production is likely to more thandouble in the next 10 years following the increased adoption of renewableenergy and EVs.
The company has divided its business into three broad high-valuecategories - rare earth, titanium and critical metals.
In the rare-earth segment, the company is working towards long-termstable, secure and sustainable supply with the potential to provide strip metalalloy for permanent magnets while being part of a permanent magnet solution forthe industry.
With the titanium segment, ASM strives to be an independent, lower cost,environmentally responsible supplier of titanium metal, metal alloys andpowders with potential to integrate into 3D manufacturing.
In the critical metal segment, the company will supply zirconium andhafnium metal for present and future demand while ensuring uninterrupted supplyof critical metals including niobium.
Investor support
ASM’s strategy of sourcing its metals for products such as neodymiummagnets from its fully-owned Dubbo Project has proven very successful andinvestors have demonstrated confidence in the company’s capabilities sincelisting.
This confidence is evident from the fact that the company’s share priceshave jumped more than three-fold in the current quarter.
(20min delay)