What are Bioheap and HPAL leaching processes and why WSA is an industry leader.
Bioheap and HPAL are the processes to extract valuable metals used in battery storage solutions.
They're in developments and are not widely used around the world because metals prices won't support the technologies but China and US demands in EVs will support the industry.
The essential metals are Nickel, Cobalt and Vanadium.
Cobalt is a by product of nickel and copper/silver
Vanadium is a by product of Graphite
Nickel grades are very important in EV batteries.
There're 3 types of ores suitable for the processes from 3 companies.
MLX, nickel-cobalt oxide, low grade, dry laterite ores, NT Australia
SYR, graphite-vanadium oxide ores, low grade, South Africa
WSA, nickel sulfide, higher grade, WA
HPAL is for Oxide ores and Bioheap is for both sulfide and oxide ores bodies.
HPAL is fast and expensive than Bioheap which is a slow process and lots cheaper.
HPAL is developed by Csiro and Bioheap is developed by WSA.
Australia companies cannot process Cobalt and Vanadium. They are used to sell cheap materials contained those rare earth metals to China. China must process those cheap materials to turn them into higher valuable metals at premium prices for Cobalt and Vanadium.
Some companies had used different types of acid heap leaching processes and the projects had costed them lots and lots of monies due to environmental problems.
MLX has good resources of nickel-cobalt oxide but the project has been stalled for too long because of weak nickel price and it required 70% start up costs that why it's been looking for a join venture to develop the project.
SYR just wants to sell raw materials to China regardless low prices for low grade graphite and zero price for vanadium.
WSA has been developed the project for 10 years while awaiting for a resurgence in nickel price and demands in battery storage solutions. WSA also wants to sell the technology when it succeeds.
Actually WSA has just produced handful of 20% highest grade nickel amid it's still at early stage.
That's the key different between WSA and MLX.
A company with good balance sheet, capable of making good money and an industry leader in technology to process valuable metals. So why the market is shorting this stock???????????????????
WSA Price at posting:
$2.62 Sentiment: Buy Disclosure: Held
