Ann: West Arunta Project - Luni Assay Results, page-565

2. WA1 Resources (ASX: WA1) - Emanuel Datt

Datt focuses on companies with scarce, strategically important assets and has a solid growth path ahead. One that fits the bill is WA1 Resources “which has discovered an enormous niobium deposit in Western Australia.”

Why get excited about niobium?

“Niobium is a rare critical mineral produced from only three mines globally, however, is essential for the continuing global energy transition. The primary use of niobium is in the steel industry where 300grams of niobium alloyed into a tonne of steel results in a 25% reduction of steel required in most applications,” says Datt.

It makes lighter and stronger steel. In addition, there’s emerging use in battery technology, “where niobium-based technology is demonstrating charge times of 5 minutes relative to the present 90 minutes with existing technology.”

Currently, the Araxa Mine, owned by Companhia Brasileira de Metalurgia e Mineracao, produces 85% of global production, but Datt says the WA1 Resources deposit holds promise as the “second-best commercialisable niobium deposit on earth”.

“We believe the stock’s valuation looks modest at circa $730 million relative to past transaction values for minority interests in the Araxa mine, and believe their value differential will close as the project is further derisked over time,” Datt says.