I can only speculate...The strategic move to divest Barrambie aligns with Neometals' focus on their three core processing technologies: lithium-ion battery recycling, vanadium recovery, and lithium chemicals. Divesting Barrambie could provide the company with the necessary cash flow to support its primary focus on sustainable materials recovery and recycling operations.
Considering a Joint Venture (JV) or total divestment, the choice largely depends on Neometals’ long-term vision and capital needs. A JV might allow Neo and shareholders to retain some exposure to the potential upside of the Barrambie project while sharing operational risks and capital expenditures with a partner. On the other hand, a total divestment could provide immediate capital and reduce exposure to the mining and development risks associated with the project, which may be beneficial if the company aims to prioritize its core business activities and technologies
Given the emphasis on generating cash flow and supporting a strategic shift towards sustainable material recovery, a total divestment could offer a cleaner exit and more immediate financial benefits. However, a JV could be advantageous if the company prefers to retain a stake and share the operational risk with a partner. Ultimately, the best path forward depends on Neometals’ risk appetite, financial strategy, and long-term objectives for shareholders.
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