Neometals Ltd, the integrated project developer, continues to make progress with its portfolio of minerals and advanced materials projects, that are all positioned to benefit from the energy storage mega-trend. The Company’s growth strategy involves identifying, building and realising value within this specific sector of the market. The approach was successfully demonstrated at the Company’s Mt Marion Lithium Project that was acquired, developed and progressively sold with the remaining ~14% balance divested in March 2019 for A$104 million.
At Arlington Group, we view Neometals’ first-class balance sheet as a competitive advantage, allowing the Company to progress its portfolio of projects and to operate through the cycle. However, the company trades at a discount to cash, despite owning three core projects that have all seen significant progress in 2019 and that are well positioned to reach important milestones in 2020.