Firebird Metals - Quarterly Report Highlights Major Developments in Battery-Grade Manganese Sulphate Project
FIREBIRD METALS LIMITED (FRB) Share Update July 2024 Tuesday 30th
Firebird Metals Reports Significant Progress in Battery-Grade Manganese Sulphate Project
Firebird Metals Limited (ASX: FRB) has released its June 2024 Quarterly Activities Report, highlighting significant progress in its battery-grade manganese sulphate project in China.
Instant Summary:
- Completion of Battery Grade Manganese Sulphate Feasibility Study.
- Projected CAPEX of US$83.5 million and OPEX of US$609/mt.
- Plant capacity of 50kt/a for MnSO4 and 10kt/a for Mn3O4.
- Indicative and non-binding financing agreements up to US$56 million.
- Critical safety permit received for plant construction.
- Agreement with Zhongji Sunward Technology Co., Ltd for pilot plant development.
Feasibility Study Results
The Battery Grade Manganese Sulphate Feasibility Study, completed in May 2024, revealed excellent outcomes for Firebird Metals' stage one production in China. The study projected a CAPEX of US$83.5 million and a competitive OPEX of US$609 per metric tonne for battery-grade manganese sulphate. The plant is expected to produce 50kt/a of MnSO4 and 10kt/a of Mn3O4, equivalent to 72.5kt/a of MnSO4 capacity.
The feasibility study incorporated conservative cost estimates and the lowest selling sulphate price compared with peers. This positions Firebird as a highly competitive producer of high-purity manganese sulphate.
Financial Support and Permits
Firebird Metals has secured combined indicative and non-binding financing agreements up to US$56 million, covering approximately 60% of the estimated construction and commissioning costs. The company received robust support from the Jinshi Government, China Construction Bank (Jinshi division), and China National Chemistry Southern Construction and Investment Co Ltd (China Chemical).
The critical safety permit for the construction and operation of the battery-grade manganese sulphate plant was received in May 2024. The environmental and energy permits are also well advanced, with full approval expected imminently.
Partnership with Sunward
Firebird Metals signed an agreement with Zhongji Sunward Technology Co., Ltd (Sunward) to co-fund the development of a pilot plant. Sunward will cover 50% of the US$200,000 cost and is responsible for the detailed engineering design and manufacturing of the pilot plant. Sunward has also agreed to pay Firebird a 5% royalty on future sales revenue from calciners incorporating Firebird's energy-saving rotary system.
Oakover Project and Non-Core Tenements
The Oakover Project in Western Australia remains a key future operation for Firebird, especially given significant manganese supply disruptions. Additionally, Firebird executed a farm-out agreement with Macro Metals Ltd for non-core manganese tenements, allowing Macro to earn an 80% interest by investing $150,000 in exploration and development expenditure within 12 months.
The advancements in the battery-grade manganese sulphate project are likely to positively impact Firebird Metals' stock, as the company positions itself as a competitive producer in the growing battery materials market. The financial support and strategic partnerships further strengthen its market position.
Investor Reaction:
Analysts are likely to react positively to the comprehensive feasibility study results and the significant financial backing. The strategic partnership with Sunward and the receipt of critical permits also add to the positive sentiment.
Conclusion:
Investors should closely monitor Firebird Metals' progress as it moves towards the construction and operation of its battery-grade manganese sulphate plant. The company's strategic initiatives and strong financial backing make it a promising player in the battery materials market.