Why the Neometals (ASX:NMT) share price is up 7% today

The Neometals share price is rocketing today. Let’s unpack the company’s latest announcement.
The post Why the Neometals (ASX:NMT) share price is up 7% today appeared first on The Motley Fool Australia. –

Shares in Neometals Ltd (ASX: NMT) are surging today after news that the miner plans to demerge its Mt Edwards Nickel Project in Western Australia into a new company.

The new entity, Widgie Nickel Limited, will seek ASX-listing post demerger.

At the time of writing, the Neometals share price is up 7.29% trading at 52 cents.

Neometals engages mainly in mineral exploration, extracting valuable metals, including lithium and titanium.

Why is the Neometals share price up today?

According to the announcement, Neometals shareholders will receive new Widgie Nickel shares at no cost, but on a pro rata basis in proportion to their existing shareholdings. 

The company said the share distribution was an ‘in-specie’, which involves the transfer of shares rather than in the equivalent amount of cash. The demerger is subject to shareholder approval.

Neometals said that Widgie Nickel shareholders would be entitled to participate in an entitlement offer to acquire more Widgie Nickel shares. 

Neometals managing director Chris Reed had this to say about the news:

The demerger and return of our Mt Edwards asset offers existing Neometals shareholders the opportunity to realise the inherent long-term value of this exciting development story in a discrete, nickel focussed corporate vehicle.

Potential of Widgie Nickel 

Located on the Widgiemooltha Dome, Widgie Nickel has 7 “world-class nickel mines and hosts Australia’s newest high-grade nickel mine”, according to the release.

Reed described the assets as “highly deserving of their own time and attention, and the recent metallurgical results from just one of the deposits that revealed high grade palladium reporting to concentrate, demonstrates just some of what can be achieved with a dedicated focus”.

The company said it was expected that Widgie Nickel would be able to realise Mt Edwards long-term latent value, as it would engage dedicated resources allowing Neometals to focus on its core battery materials projects.

Subject to the demerger going ahead, the company will apply for a possible ASX listing of Widgie Nickel by the fourth quarter in 2021, with further information to be released in the coming weeks. 

The Neometals share price has continued to outperform, finishing FY21 with a 200% gain.

The post Why the Neometals (ASX:NMT) share price is up 7% 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 May 24th 2021

More reading

Why the Neometals (ASX:NMT) share price is moving higher

Motley Fool contributor Frank Tzimas 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!