Here’s why the Neometals (ASX:NMT) share price is sinking today

The miner provided some disappointing news…
The post Here’s why the Neometals (ASX:NMT) share price is sinking today appeared first on The Motley Fool Australia. –

The Neometals Ltd (ASX: NMT) share price is heading south today after the valuable metals miner made a surprise announcement.

At the time of writing, Neometals shares are down 1.32% to 75 cents apiece. In comparison, the All Ordinaries Index (ASX: XAO) is up 0.35% to 7,815 points.

What did Neometals announce?

In last night’s release, Neometals advised that its memorandum of understanding (MOU) with Indian company Manikaran Power has been terminated.

Based in New Delhi, Manikaran Power is the third-largest power trading and diversified renewable energy company in India. The conglomerate sells and purchases electricity through short- and medium-term trades and on the power exchanges.

Previously, Neometals and Manikaran Power commenced a joint feasibility study for a lithium refinery in India. This followed a binding MOU signed in June 2019 providing a framework to assess producing lithium carbonate equivalent in the country.

The project looked at having a capacity to produce up to 20,000 tonnes of lithium hydroxide per year. If established, ore would be processed from Neometals’ Mount Marion mine in Western Australia to produce battery-grade material for electric cars.

However, no further details were given in the update as to why the collaboration between both parties fell through. Investors have since decided to offload their holdings, sending the Neometals share price lower.

It’s worth noting that India is on course to become the world’s fourth-largest electric vehicle market by 2040. The first three biggest markets consist of the United States, China, and the European Union.

About the Neometals share price

Over the past 12 months, the Neometals share price has rocketed by more than 320%. Year to date it has been just as impressive, up more than 170% over the last 9 months.

The company’s shares hit an all-time high of 89 cents this month before profit-taking swooped in.

Based on today’s price, Neometals has a market capitalisation of roughly $411.2 million, with approximately 548 million shares on issue.

The post Here’s why the Neometals (ASX:NMT) share price is sinking today appeared first on The Motley Fool Australia.

Should you invest $1,000 in Neometals right now?

Before you consider Neometals, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Neometals wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Neometals (ASX:NMT) share price falls on battery update
Neometals (ASX:NMT) share price slips on battery recycling update
Neometals (ASX:NMT) share price rockets 7% after pilot trial update

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!