Neometals (ASX:NMT) share price slides on dual-listing update

The Neometals Ltd (ASX: NMT) share price is edging lower today after the company said it plans to list on the London Stock Exchange (LSE).

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Neometals Ltd (ASX: NMT) shares are edging lower today after the company announced it plans to list on the London Stock Exchange (LSE). At the time of writing, the Neometals share price is trading at 49.5 cents – down 1.0%. By comparison, the All Ordinaries Index (ASX: XAO) is down by just 0.1%.

Let’s take a closer look at today’s news from the lithium exploration company.

What’s affecting the Neometals share price?

The Neometals share price is in the red today after the company advised in a statement to the ASX it is seeking to list on the LSE in addition to the ASX. The dual listing is being sought  “as part of its strategy to capitalise on substantial UK and European investor interest in the Company’s role supporting sustainable circular battery value chains.”

The company says it expects to be admitted onto the LSE in the first half of FY22. 

Neometals managing director, Chris Reed, commented:

Neometals’ projects are advancing towards development decisions, so the time is right to maximise liquidity and better access the huge pools of European investment capital. Admission to the LSE extends the trading window available to investors and we look forward to leveraging off Cenkos’ strong track record in supporting ESG-focused companies. We also look forward to participating in LSE sustainability initiatives like the ‘Green Economy Mark’, which recognises companies deriving 50% or more of their revenues from environmental solutions.

Neometals would not be the first Aussie company or even the first minerals exploration company to be dual listed. Rio Tinto Limited (ASX: RIO) is also dual-listed on the ASX and LSE. Lithium competitor Piedmont Lithium Ltd (ASX: PLL) is dual-listed on the Nasdaq, as is Mesoblast Limited (ASX: MSB).

Only recently, Afterpay Ltd (ASX: APT) said it was considering a dual listing in the United States. Meanwhile, Zip Co Ltd (ASX: Z1P) shares surged by around 20% in early February amid rumours it was exploring a potential listing in the US. Judging by today’s Neometals share price action, however, investors do not hold the same enthusiasm over a possible dual listing for the lithium explorer. 

Company background

While initially focused on lithium, Neometals has expanded its remit over recent years. The company says it has three main focus areas:

  1. Recycling and resource recovery – The company extracts lithium and vanadium through recycling programs. Lithium is recovered from ion batteries while vanadium is salvaged from steel manufacturing by-products.
  2. Lithium refinery project – With a plant in India, Neometals wants to refine its lithium to supply “the battery cathode industry”.
  3. Barrambie titanium and vanadium project – According to the company, this project encompasses one of the largest titanium-vanadium deposits in the world. Neometals expects to develop the site from 2022.

Neometals share price snapshot

Over the past 12 months, the Neometals share price has increased by around 209% Only last week, the company hit a 52-week high of 54 cents per share.

Neometals has a market capitalisation of $264.5 million.

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Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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