The Neometals Ltd (ASX: NMT) share price is in a trading halt today after a stunning rise yesterday to a new 52-week high. Here’s a breakdown
The post Why is the Neometals (ASX:NMT) share price in a trading halt today? appeared first on The Motley Fool Australia. –
The Neometals Ltd (ASX: NMT) share price is not going anywhere today after a trading halt was placed on the company’s shares. The Neometals share price has spent the last few days, and months for that matter, climbing enthusiastically.
Yesterday, Neometals was up almost 9% to a new 52-week high of 56 cents a share. Year to date, the company is up more than 90%, and over the past 12 months, 250%.
Neometals is an ASX lithium exploration company. The company owns a refinery project in India. In addition, Neometals owns recycling operations that extract lithium and vanadium from batteries and steel slag.
So what happened this morning?
Well, the company put out an ASX release requesting a training halt for its shares, that’s what. This happened at 9:54 am, just before market open.
So, here’s what Neometals had to say when it requested the trading halt:
Neometals Ltd (Company) requests that ASX grant an immediate trading halt with respect to the Company’s securities pending an announcement regarding an update on study results for the Company’s Battery Recycling project. The Company requests that the trading halt remain in place until the earlier of commencement of trading on Monday, 10 May 2021 or the time the Company makes an announcement.
The “company’s battery recycling project” could refer to Neometals‘ announcement on 5 March. This flagged a memorandum of understanding between ‘Primobius GmbH’ (a joint venture between Neometals and SMS Group GmbH) and Japan’s Itochu Corporation. This memorandum of understanding (MoU) “provides a framework towards establishing a corporation for battery recycling” between the two parties.
According to the ASX announcement, the two parties have commenced planning discussions and preparations for a “dedicated demonstration plant trial”. It also announced that “it is intended that future binding legal agreements will encapsulate sales of recycled product to establish a circular economy for Itochu based on the use of Primobius recycling technology”. The plant trial is scheduled to begin operations in the 3 months to June 30 2021.
What else has been affecting the Neometals share price?
It was only last month that Neometals shares were in a spot of bother over plans for the company to initiate a dual listing. The company announced on 23 April that it plans to list on the London Stock Exchange. The listing will take place in the first half of FY2022. This sent Neometals shares down 1% at the time.
At the current (albeit frozen) share price of 56 cents, Neometals has a market capitalisation of $302.5 million.
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Motley Fool contributor Sebastian Bowen 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.