Why is the Neometals (ASX:NMT) share price rocketing 16% today?

The ASX mineral project developer has marked the new year with continuing momentum.
The post Why is the Neometals (ASX:NMT) share price rocketing 16% today? appeared first on The Motley Fool Australia. –

The Neometals Limited (ASX: NMT) share price is leading the majors today, trading 16% higher at $1.65 apiece.

While there’s been no price sensitive information out of Neometals’ corner today, investors have been riding the wave of momentum in its share price since late December.

After a collection of announcements, the Neometals share price closed the year almost 500% in the green at $1.42, jumping 40% in the final days of December alone.

Why is the Neometals share price charging higher today?

There’s nothing remarkable out of Neometals’ camp today although it seems momentum from the final session of 2021 is spilling over into the new year.

Early in the session today, the volume of Neometals shares traded is already at 123% of its 4-week average – and that figure has been climbing rapidly too.

Last week, investors reacted well to an announcement from the company regarding Primobius, its 50/50 joint venture (JV) with SMS group GmbH.

The company advised its JV has executed binding option and licensing agreements with Stelco, a subsidiary of Stelco Holdings Inc (TSX: STLC), a Canadian steelmaking company listed on the Toronto Stock Exchange.

Stelco is a leading supplier of steel to automotive markets and consumes scrap as part of its steel manufacturing process.

Neometals reckons the venture “presents the perfect opportunity for Primobius to enter the North American market as partners”.

The group had already entered into an agreement earlier in 2021 to evaluate lithium-ion battery recycling operations.

After reaching binding formal arrangements, Primobius has exclusively licensed its battery recycling technology to a special purpose vehicle (SPV) focused on end-of-life vehicle battery processing.

Primobius can also acquire a 25-50% equity stake in the SPV under certain stipulations through another option agreement.

Neometals claims the venture will help meet the demand for an anticipated surge in end-of-life electric vehicle batteries originating from the ”world’s fastest-growing cell making jurisdiction”.

Managing director Chris Reed said the company was “understandably excited” by Primobius’ commercial progress.

Neometals share price snapshot

The Neometals share price finished the year up more than 500% over the past 12 months and is now up almost 43% in the last single-month period.

Investors have latched onto the company this past week and have spiked shares more than 52% in that time.

The post Why is the Neometals (ASX:NMT) share price rocketing 16% today? appeared first on The Motley Fool Australia.

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The author has no positions 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.

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