Firebird Metals Limited (ASX: FRB, “Firebird” or “the Company”) is pleased to provide an update on its activities during the June 2024 Quarter.
HIGHLIGHTS
CHINESE LMFP BATTERY STRATEGY
- Battery Grade Manganese Sulphate Feasibility Studyi. Key results include:
- Projected CAPEX of US$ 83.5 million
- Projected Working Capital of US$ 10.6 million
- Chinese circular industry and plant location within the Jinshi High-Tech Industrial Park provides localised key reagents and inputs that drive a highly competitive OPEX of approximately US$609/mt for production of battery grade manganese sulphate
- Plant Capacity for Battery Grade Manganese Sulphate (MnSO4) of 50kt/a & Manganese Tetra Oxide (Mn3O4) 10kt/or equivalent MnSO4 of 72.5kt/a
- Study incorporated conservative cost estimates and the lowest selling sulphate price compared with peers
- Results demonstrated the opportunity for Firebird to become a highly competitive producer of high-purity manganese sulphate
- Combined indicative and non-binding financing agreements up to US$56M well advanced, accounting for approximately 60% of the estimated construction and commissioning costsii
- Critical safety permit received for the construction and operation of the battery grade manganese sulphate plantiii
- Agreement signed with Zhongji Sunward Technology Co, Ltd (Sunward), a leading producer of rotary tunnel kilns used in many chemical plants across Chinaiv
- Sunward to fund 50% of the cost of a pilot plant which has a total cost estimate of US$200,000 and is responsible for the detailed engineering design and manufacturing of the pilot plant
- The new calcining unit has broad industrial applications. Sunward has agreed to pay Firebird a 5% royalty on future sales revenue
- Following a Final Investment Decision (FID), Firebird will be ready to commence construction of the sulphate plant, projected to take ~12-15 months
OAKOVER PROJECT (E52/3577)
- Oakover’s underlying value and importance as a key future operation continue to be underscored by significant manganese supply disruptions
NON-CORE MANGANESE TENEMENTS
- Execution of farm-out agreement with Macro Metals Ltd on non-core manganese tenements (E46/1456, E46/1457, E46/1389 and E45/5906) post quarter endv
CORPORATE
- Cash position at end of June 2024 of $5.1m
Cautionary Statement
The Feasibility Study referred to in this announcement is a Technical Feasibility of the establishment of the Battery Grade Manganese Sulphate Project Stage 1 Processing Plant in China (the Plant).
The Feasibility Study is based on the material assumptions contained in the Feasibility Study document released to the ASX on 7 May 2024. These include assumptions about the availability of funding. While the Company considers all of the material assumptions to be based on reasonable grounds, there is no certainty that they will prove to be correct or that the range of outcomes indicated by the Feasibility Study will be achieved.
Notwithstanding the developments set out in this quarterly report, Investors should note that there is no certainty that the Company will be able to raise the amount of funding to develop the Plant when needed. It is also possible that such funding may only be available on terms that may be dilutive to or otherwise affect the value of Company’s existing shares.
It is also possible that the Company could pursue other ‘value realisation’ strategies such as a sale, partial sale or joint venture of the Plant. If it does, this could materially reduce the Company’s proportionate ownership of the Plant. Given the uncertainties involved, investors should not make any investment decisions based solely on the results of the Feasibility Study.
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This article includes content from Firebird Metals Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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