The Queensland Pacific Metals Ltd (ASX: QPM) share price has rocketed by 15% this morning after news the company has produced battery specification nickel sulfate.
Tests were able to produce battery quality nickel sulfate from nickel-cobalt mixed hydroxide precipitate (MHP) produced at Queensland Pacific's pilot plant operations.
Today, the Queensland Pacific Metals share price opened 5% higher than yesterday's close. It has continued rising at currently sits at 12 cents a share, up 15%.
Let's look closer at the news from Queensland Pacific.
Today's news
In today's release, Queensland Pacific shared it has defied even its own expectations of the quality of nickel sulfate produced by its pilot plants operations.
It recently engaged The Simulus Group to undertake bench scale test work to produce nickel sulfate.
Currently, MHP is the preferred product to refine nickel sulfate for batteries. The process is a conventional commercial flowsheet that is widely used in the industry.
The conventional industry flowsheet involves re-leach, solvent extraction, impurity removal and crystallization, which Simulus used to successfully produce nickel sulfate.
The result was better than the company's targets. Queensland Pacific stated that, based on industry specifications, the results meet even the strictest of battery specifications.
It claimed the ability to produce nickel sulfate from its New Caledonian-sourced products is an important milestone for the company.
Queensland Pacific is now beginning pilot scale testwork to produce nickel sulfate from its remaining mixed hydroxide precipitate. It is also working with the CSIRO to find an alternative refining flowsheet to reduce the costs of processing nickel sulfate.
Commentary from management
QPM's managing director Stephen Grocott commented on the findings. He said:
We have now completed the full process from a raw ore source to a final battery chemical product. The Australian Government is trying to develop the nation's capability for advanced manufacturing and the TECH Project is the perfect example of a project that would fit this bill.
Queensland Pacific Metals share price snapshot
The Queensland Pacific Metals share price is having a roaring year so far on the ASX.
Currently, it's up 162.5% year to date. It's also up a whopping 950% over the last 12 months.
Queensland Pacific Metals has a market capitalisation of around $112 million, with approximately 1 billion shares outstanding.
