Renascor Resources share price tumbles again despite licensing deal

Renascor Resources has announced a licensing agreement for its downstream processing.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Renascor Resources Ltd (ASX: RNU) share price is down 3.6% today despite another positive update.

The shares are currently sitting at 14 cents apiece.

They took a 23% dive yesterday despite the ASX mineral explorer announcing "compelling economics" for its proposed graphite project.

Renascor Resources owns the Siviour Graphite Deposit in South Australia. This is the second-largest graphite reserve in the world.

The company wants to build a battery anode material (BAM) project at the site. This will incorporate a vertically integrated graphite mine and downstream processing operation.

Today, Renascor announced a licensing deal with German battery mineral consultancy group Dorfner ANZAPLAN GmbH.

The agreement will allow Renascor to use Dorfner's eco-friendly purification process for its downstream processing plant at Siviour.

The process eliminates the need to use hydrofluoric acid in the production of purified spherical graphite (PSG). This type of graphite is used in lithium-ion batteries.

Trials designed to increase efficiencies resulted in the development of the unique purification process.

These efficiencies include reduced leaching steps and less water consumption than traditional methods.

The trials resulted in PSG that met or exceeded lithium battery anode purity specifications.

The results came in at up to 99.99% carbon compared to the anode industry standard of 99.95%.

As we reported yesterday, Renascor has just released the study results for its proposed project.

The study incorporates the new purification process into the engineering design for the PSG facility.

According to the study, Renascor will be able to produce 150,000 tonnes per annum (tpa) of graphite concentrate over a 40-year life of mine and 100,000 tpa of PSG.

Miner looking at a tablet.

Image source: Getty Images

Renascor Resources share price snapshot

The Renascor Resources share price has fallen 35% over the past 12 months.

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Materials Shares

A small child in a sandpit holds a handful of sand above his head and lets it trickle through his fingers.
Materials Shares

Guess why this ASX stock is jumping 4% on Friday?

This beaten-down ASX stock is finally moving higher.

Read more »

A miniature moulded model of a man bent over with a pick stands behind a sign that has lithium's scientific abbreviation 'Li', with the word lithium underneath it against a sparse bland background.
Resources Shares

Could this evolving development smash ASX lithium shares like Liontown, Mineral Resources and PLS?

Buying ASX lithium shares? You’ll want to keep reading…

Read more »

Three people at a building site discussing a plan whilst eating.
Materials Shares

James Hardie says it doesn't need a US housing recovery. Can it prove it?

Investors are watching whether growth can continue.

Read more »

Scared, wide-eyed man in pink t-shirt with hands covering mouth.
Materials Shares

Down 6% today: What's going on with the James Hardie share price?

Can the shares keep tumbling?

Read more »

A mature age woman with a groovy short haircut and glasses, sits at her computer, pen in hand thinking about information she is seeing on the screen.
Materials Shares

IperionX validates GenX™ titanium production: Major efficiency gains

IperionX has validated its GenX™ platform, delivering major improvements in titanium production efficiency and paving the way for industrial-scale development.

Read more »

Buy, hold, and sell ratings written on signs on a wooden pole.
Broker Notes

PLS shares have soared 107% in a year! Is the ASX 200 lithium stock now a buy, hold or sell?

A top analyst provides his outlook for the rocketing PLS share price.

Read more »

Couple on their laptop in their home kitchen.
Technology Shares

$10,000 invested in DroneShield and Core Lithium shares 3 years ago is now worth…

Was I better off buying $10,000 worth of DroneShield shares or Core Lithium shares in September 2023?

Read more »

Two miners at a mine site on their tablets, with mining machinery behind them.
Resources Shares

$10,00 invested in Rio Tinto and Fortescue shares 3 years ago is now worth…

Here’s how the three-returns from a $10,000 investment in Rio Tinto and Fortescue shares compare.

Read more »