Shares in the manganese-focused miner entered a trading halt on Friday.

The company requested the pause in trading pending an announcement by the United States Department of Energy (DoE). Element 25 was previously selected for award negotiations with the DoE relating to a grant in support of its High Purity Manganese project, located in the US state of Louisiana.

Shares in the ASX mining stock closed last Thursday trading for 21.5 cents apiece.

In early trade on Tuesday, shares just leapt to 48.0 cents, up an eye-popping 123.3%. After some likely profit trade, shares are currently swapping hands for 43.5 cents each, up 102.3%.

Any guesses?

If you said Element 25 Ltd (ASX: E25), give yourself a virtual gold star.

Here's what's captured investor interest today.

ASX mining stock rockets on US grant news

The Element 25 share price is going to the moon after the company reported that it was selected for award negotiations for a US$166 million (AU$243.8 million) grant from the DoE under the Battery Materials Processing Grant Program.

The program is intended to provide grants for battery materials processing to ensure that the US has a viable battery materials processing industry.

Management noted that the grant award comes atop of the US$115 million already committed to the ASX mining stock by offtake partners General Motors and Stellantis.

They said the new funding will support the construction of its proposed battery-grade high-purity manganese sulphate monohydrate (HPMSM) project in Louisiana.

Forming a key part of Element 25's financing strategy, the company said it will now work to finalise the project schedule, subject to grant finalisation.

Element 25 said it plans to produce HPMSM from manganese ore sourced from its Butcherbird mine in Western Australia, which will then be shipped to Louisiana.

Commenting on the DoE grant sending the ASX mining stock surging today, Element 25 managing director Justin Brown said:

This grant from the US Department of Energy, once finalised, represents a major milestone in our development of the Louisiana HPMSM Project and adds to the commitments already received from GM and Stellantis which include both offtake and financing agreements in support of the refinery.

Brown added:

The grant will fund up to half of the construction capital costs for the project and when combined with existing commitments, will propel the project towards financial close and commencement of construction, creating long-term jobs for Louisiana and delivering ethically sourced, IRA compliant HPMSM to our customers.

With today's intraday gains factored in, shares in the ASX mining stock are back in the green in 2024.

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At one stage today, the ASX materials share was up as much as 23% to 74 cents.

In early afternoon trade, it has pulled back a touch but remains up 10% to 66 cents.

Why is this ASX materials share rocketing?

Investors have been fighting to get hold of this ASX materials share on Monday after it announced a deal with auto giant General Motors Co. (NYSE: GM).

According to the release, Element 25 will supply up to 32,500 metric tonnes of manganese sulphate to General Motors annually. This will support the automaker's annual production of more than 1 million electric vehicles (EVs) in North America.

As part of the deal, General Motors will provide Element 25 with a US$85 million loan to partially fund the construction of a new manganese sulphate production facility in Louisiana, United States.

In total, the ASX materials share expects to invest approximately US$290 million to build the 230,000-square-foot facility. Site preparation is planned to begin in the third quarter of 2023, before opening in 2025.

The company highlights that the facility will produce manganese sulphate by processing manganese concentrate from the Butcherbird Manganese Project in Western Australia. It is expected to be the first facility of its kind in the United States.

Element 25's managing director, Justin Brown, said:

E25 aims to be a leading source of high quality, vertically integrated, traceable and ESG-compliant battery material to the global electric vehicle industry and GM's support does more than accelerate our strategy for HPMSM production in the United States. Together, we are creating a resilient and sustainable North American supply chain that will help introduce millions of customers to the performance and environmental benefits of EVs.

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In morning trade, the manganese producer's shares are up over 15% to $1.11.

Why is this ASX mining share racing higher?

Investors have been bidding the Element 25 share price higher today after the company announced an agreement with an auto giant.

According to the release, the company has signed a binding agreement with Stellantis N.V. to supply battery-grade high purity, manganese sulphate monohydrate (HPMSM) from its proposed USA-based HPMSM processing facility.

Stellantis is the name behind a range of popular auto brands including Alfa Romeo, Chrysler, Citroen, Fiat, Jeep, Maserati, and Peugeot.

The release advises that the agreement combines take or pay offtake commitments for 45Kt of HPMSM from the facility over five years. In addition, Stellantis will part-fund the development of Element 25's HPMSM processing facility with a US$30 million investment across two tranches

A 'fantastic endorsement'

Element 25's managing director, Justin Brown, appeared to be delighted with the news. He commented:

Stellantis' support for Element 25's high purity battery-grade manganese sulphate project is a fantastic endorsement by one of the world's largest automakers and supports our plans to become a globally significant long-term supplier of battery materials to meet growing global demand. We are fully aligned with Stellantis' decarbonisation and electrification goals, which represent some of the most ambitious in the industry and E25 have a pathway to reach agreed net zero carbon emission goals under this deal.

This is an important step in the delivery of our first production module which will combine Element 25's innovative processing flowsheet and the high quality, ethically sourced manganese concentrate from our 100%-owned Butcherbird Project in Western Australia to deliver sustainable, ethically sourced battery grade manganese to the electric vehicle industry.

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The S&P/ASX 200 Materials Index (ASX: XMJ) is one of only three sector indices in the green, finishing 0.86% higher today. Only the S&P ASX 200 Energy Index (ASX: XEJ) closed higher, with a gain of 1.18%.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) closed today down a modest 0.27%.

Let's cover which mining shares were in the freezer on Wednesday.

OZ Minerals Limited (ASX: OZL)

The Oz Minerals share price was halted this morning pending a potential takeover bid.

The Fool reported that Oz Minerals could be an acquisition target by BHP Group Ltd (ASX: BHP).

As my colleague James notes, Oz Minerals rejected a previous bid by BHP in August for $25 per share.

It's now rumoured that BHP has returned to the table with a higher offer.

Shares of the company will remain on ice until 18 November or when the announcement is made, whichever comes sooner.

WA1 Resources Ltd (ASX: WA1)

WA1 Resources extended its trading halt this morning, after requesting a pause on the trading of its shares on Monday.

The resources exploration company has asked for more time to prepare two significant announcements for the market.

First, it wants to release exploration results for one of its sites in Western Australia. Once these results are posted, the company will make an announcement regarding a capital raise.

WA1 Resources expects to make this announcement and for the trading halt to lift next Monday 21 November.

Element 25 Ltd (ASX: E25)

Meanwhile, manganese miner Element 25's shares have been frozen since Tuesday.

The mineral explorer wants to raise money to pay for its new project and to improve its existing operations. It has requested a trading halt in preparation to announce its plans to the public.

Funds will go towards its high-purity manganese Butcherbird in the southern Pilbara region of Western Australia and for other capital expenditure purposes.

The halt will last until 17 November or when Element 25 makes its capital raise announcement.

The post 3 ASX mining shares on ice today pending big news appeared first on The Motley Fool Australia.

Kuniko Ltd (ASX: KNI), Dundas Minerals Ltd (ASX: DUN) and Element 25 Ltd (ASX: E25) shares are all rocketing ahead today. The ASX 200 Materials Index is up 0.94% today.

So why are these ASX mining shares having such a stellar day?

Kuniko

Kuniko shares are soaring 11% today. The company is exploring the Skuterud Cobalt project in Norway. Drill assay results showed "significant cobalt mineralisation". Copper was also identified. Kuniko plans to conduct further drilling at the site to unlock the "promising upside" of the project.

Commenting on the news, CEO Antony Beckmand said:

We are increasingly confident the results are supporting the potential for identifying cobalt-copper rich zones at a large scale.

Element 25

Element 25 shares are soaring 17% today. The company updated investors on plans to produce high purity battery grade manganese sulphate from the company's Butcherbird Project. A feasibility study is on schedule for completion in December. Element 25 is also in discussions with potential offtake partners. Furthermore, the company highlighted how it could qualify for clean energy and electric vehicle incentives in the USA Inflation Reduction Act.

Element 25 had this to say regarding the news:

Importantly for Element 25 investors, qualifying FTA countries include Australia and qualifying critical minerals include manganese.  

Dundas Minerals

Dundas shares are soaring 45% today. Earlier today, the company's share price exploded 100%. Dundas is exploring nickel, copper, cobalt and gold in Western Australia. Drilling at the site intersected with massive and disseminated sulphides along with sulphidic quartz veins.

Commenting on the news, managing director Shane Volk said:

Given the results from hole 1, we'd expect to intercept sulphides again in hole 2.

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At the time of writing, the Element 25 share price is up 17.5% at $1.41, having hit a high of $1.49 this morning.

New development in manganese project

In case you haven't heard of it, manganese is a fairly common element found around the world. However, it is critical to the production of steel and batteries.

And as batteries and renewable energy become ever more popular, the demand for manganese is growing.

The Australian miner holds the biggest onshore resource in the country — the Butcherbird manganese project in Pilbara, Western Australia.

This morning, the company announced the project was back up and running after it conducted logwasher repair and engineering modification tasks that were scheduled for late last month.

The company reported a failure in the logwasher shaft on 18 November last year, which affected production.

Production levels above normal

The miner also reported an increase in production since the repair halt, hitting a daily production record of 1,209 tonnes on Monday.

Modifications for plant efficiency were also undertaken during the halt, including improved access to the plant (for future maintenance and operations), reducing noise and dust pollution, and managing over-wear of the key components of the plant.

Looking ahead, Element 25 is focused on delivering continued manganese production through Q1 FY22.

Element 25 share price snapshot

The Element 25 share price was fairly quiet up until the beginning of the pandemic. In just one year from March 2020, shares jumped from 11 cents to $2.68 — an increase of 2,336%.

The miner's share price dropped back to a 52-week-low of $1.01 last month but has since rebounded by more than 40%.

The company has a market capitalisation of $183 million.

The post Here's why the Element 25 (ASX:E25) share price is rocketing 18% today appeared first on The Motley Fool Australia.

Let's take a look at the company's latest news.

Element 25 progresses multi-stage strategy

In today's statement, Element 25 advised that AK Evans Group Australia is currently transporting the first manganese concentrate shipment from the Butcherbird manganese project to Port Hedland, Western Australia.

The Butcherbird project is a wholly-owned open pit mining development in the Pilbara region of Western Australia. Manganese is emerging as an increasingly important ingredient for EV batteries. This project is believed to contain the largest onshore manganese resource in the country.

The trucks loaded the first manganese concentrate and left on 8 June for loading onto the ship. Around 27 kilotonnes (kt) or 27,000 tonnes of material will make up the entire haulage over the coming days.

Element 25 expects the ship to be fully loaded by the last week of June, ready for departure.

In addition, Element 25's project team will now turn its attention to ramping up operations for a Stage 2 expansion. This follows the commissioning of the Stage 1 processing plant to produce 365 kt of manganese concentrate over a 40-year mine life.

A pre-feasibility study, completed in May 2020, highlighted significant growth beyond the initial Stage 1 production volumes. Current JORC estimates are that the project will produce 263 million tonnes of manganese ore.

Element 25 managing director, Justin Brown commented:

The team has bowled over yet another key milestone on our journey to fast-track the development of the Project. The successful commissioning and ramp up of this first stage of development provides a fantastic foundation from which to grow this business both by expanding concentrate production as part of our Stage 2 expansion plans but also by developing the processing infrastructure to produce battery grade Zero Carbon Manganese products for the Li-Ion batteries which will power the electrification of the global vehicle fleet.

Element 25 share price summary

Over the past year, the Element 25 share price has jumped by around 480%, with year-to-date performance seeing it rise by 46%. It reached an all-time high of $2.90 in late March before investors took profits off the table.

Element 25 has a market capitalisation of roughly $328 million, with more than 148 million shares on its registry.

The post Element 25 (ASX:E25) share price slips despite project milestone appeared first on The Motley Fool Australia.

The manganese producer has signed a letter of intent with haulage company AK Evans Group Australia. It takes the company a step closer to sending the first shipment of its Butcherbird manganese concentrate product to the company's offtake partners.

The letter of intent comes after Element 25 announced on Tuesday it had signed an agreement with the Pilbara Port Authority, allowing shipment of its product from Port Hedland.

Following Tuesday's news, Element 25 yesterday announced it had sold its first parcel of Butcherbird's manganese product to OM Holdings Limited (ASX: OMH). It's also ramped up operations at its Butcherbird site to 24-hour processing.

Despite it having little impact on the Element 25 share price so far today, let's take a closer look at the company's news.

Transport solution

Element 25 expects its latest letter of intent will lead to an agreement that will see AK Evans routinely trucking manganese concentrate from the company's Butcherbird site to Port Hedland's port.

According to Element 25, the letter of intent covers initial transport arrangements. The two companies will aim to introduce new quad road trains to truck Butcherbird's manganese products by the end of this year.

AK Evans will haul the products approximately 580 kilometres along the Great Northern Highway to Port Hedland. Element 25 said access to a sealed highway is a rare benefit the mine has over other Pilbara-based operations.

AK Evans was founded in Port Hedland and has locations across Western Australia. It has a partnership with Indigenous owned earthmoving and services company, Kurtarra Pty Limited, and an established sponsorship agreement with Beyond Blue.

Element 25 stated it will now be focusing on the next stages of the Butcherbird project's development. These include an expansion of the company's concentrate business and the conversion of concentrate material into high purity manganese sulphate monohydrate (HPMSM).

According to Element 25, HPMSM can be used in electric vehicle batteries and is likely to be in high demand in coming years.

Commentary from management

Element 25 managing director Justin Brown commented on the agreement, saying:

We are excited to be partnering with AK Evans with a view to having new dedicated road trains to transport our manganese to Port Hedland. We are also excited to know we can work with our commercial partners in delivering solutions to fulfil our vision of delivering zero carbon manganese for the EV Battery revolution.

Element 25 share price snapshot

Element 25 shares are having a fantastic year so far on the ASX.

Currently, the Element 25 share price is up by around 59% year to date. It's also up by an impressive 500% from this time last year.

The company has a market capitalisation of around $357 million, with approximately 148 million shares outstanding.

The post The Element 25 (ASX:E25) share price is in focus today. Here's why appeared first on The Motley Fool Australia.

Just yesterday, Element 25 executed a Multi User Access Agreement with the Pilbara Port Authority.

At yesterday's market close, Element 25 shares ended the day at $2.40 – closing in on their all-time high of $2.90.

What did Element 25 announce?

Element shares could be on the move today after investors digest the company's latest news.

In a statement to the ASX, Element 25 advised it has sold the first parcel of its manganese product to OM Holdings Limited (ASX: OMH). This marks a significant milestone for Element 25 after it published the project's pre-feasibility study in May 2020.

Under the offtake agreement, the company will supply material in contract specification of 30% to 35% of manganese concentrate.

As part of ramping up the company's activities, the Butcherbird mine site has progressed to 24-hour processing. The increased production rate will facilitate the first shipment to OM Holdings, scheduled for June 2021.

Element 25 managing director Justin Brown commented:

Delivering the first material under the offtake agreement within 12 months of publishing the Pre-Feasibility Study is a testament to the hard work and dedication of the Project team. This is another important milestone for the Project and Company and we are excited to be heading for our first shipment of Butcherbird's material to our offtake partners.

Powering ahead

In further news that could impact Element 25 shares, the company is focusing on the next stages of its Butcherbird project. A multi-stage development strategy is in the works which will see a stage 2 expansion of the concentrate business.

This will be followed by a stage 3 development to convert the concentrate material into high purity manganese sulphate monohydrate – a key ingredient for electric vehicle batteries.

How has the Element 25 share price been performing?

Over the past 12 months, Element 25 shares have accelerated by more than 500%, with year-to-date performance returning over 50%. The company's share price reached an all-time high of $2.90 in late March before trending lower recently.

On valuation grounds, Element 25 commands a market capitalisation of around $357 million, with approximately 148 million shares on issue.

The post Why the Element 25 (ASX:E25) share price will be in the spotlight today appeared first on The Motley Fool Australia.

During early afternoon trade, the mineral exploration and mining company's share price is fetching for $2.24, up 2.75%. In comparison, the All Ordinaries Index (ASX: XAO) is also travelling higher at 7,318 points, up 0.6%.

Details of the Element 25 update

Investors are pushing Element 25 shares higher after the company achieved an important milestone for its future operations.

According to its release, Element 25 advised it has executed a Multi User Access Agreement with the Pilbara Port Authority. Therefore, the company will be allowed to use the Port Hedland Utah Point facility to export in bulk its manganese product. A crucial ingredient for electric vehicle batteries, the mineral will come from Element 25's wholly-owned production facility at the Butcherbird Project.

Furthermore, the Utah Point facility is considered to be well equipped to handle multi-user bulk and loading operations.

Element 25 did not disclose the commercial terms of the agreement but stated that they are in line with normal operating terms. This also includes covering the company's capacity requirement of up to 390 kilotons per annum for its first stage of operations.

E25 managing director, Mr Justin Brown commented:

This is another important milestone on the way to our first sale of manganese concentrate, and we are excited to be closing in on our first shipment of Butcherbird's material to our offtake partners.

About the Butcherbird Manganese Project

The Butcherbird manganese project is an open-pit mining development located in the Pilbara region of Western Australia. The project is believed to contain the largest onshore manganese resource in the country.

A pre-feasibility study was completed in May 2020, and highlighted significant growth beyond the initial Stage 1 production volumes. Current JORC estimates put the project to produce 263 million tonnes of manganese ore.

Element 25 share price review

Over the past 12 months, Element 25 shares have accelerated to more than 500%, with year-to-date performance above 50%. The company's share price reached an all-time high of $2.90 in late March before investors took profit off the table.

Based on today's price, Element 25 presides a market capitalisation of roughly $339 million, with 148 million shares on issue.

The post Why the Element 25 (ASX:E25) share price is rising today appeared first on The Motley Fool Australia.

The resource explorer announced the project's development is progressing smoothly and the first ore has been processed.

At the time of writing, the Element 25 share price is $2.36, up 5.8% from yesterday's closing price. Let's take a closer look at today's news.

Butcherbird Project update

The first stage of development of Element 25's wholly-owned Butcherbird Project has been successfully completed. Its completion comes only 11 months after its pre-feasibility study was first published.

The Butcherbird Project aims to produce high purity manganese sulphate monohydrate for electric vehicle batteries.

Element 25 believes potential supply limits for nickel and cobalt may force battery manufacturers to use high manganese cathodes for electric vehicle production in coming years. It states the project is ideally positioned to feed any such demand. 

The production of in-specified 30% to 35% manganese content concentrate has been successfully produced in the commissioning process, with encouraging indications to potential plant throughput.

The company is now working to optimise the plant's processing quantity and product quality.

Today's release said there were no significant flaws in any of the project's processing equipment or stages. Water and power services are operating reliably.

Commentary from management

Element 25 managing director Justin Brown commented on today's news, saying:

This is another important milestone in the development of the project and we look forward to updating the market further in coming weeks as we progress towards our first shipment.

Element 25 share price snapshot

The Element 25 share price has been flourishing on the ASX of late, with today's news giving it another boost.

The Element 25 share price has risen 49% since the start of the year. It's also gained a massive 1,460% since this time last year.

The company has a market capitalisation of around $331 million, with approximately 148 million shares outstanding.

The post The Element 25 (ASX:E25) share price is gaining today. Here's why appeared first on The Motley Fool Australia.

This comes after the ASX resource explorer emerges from a 2-day trading halt it requested pending today's capital raising announcement.

Below, we take a look at the details of Element 25's capital raising.

What did Element 25 report today?

The Element 25 share price is moving lower this morning. Consequently, this comes after the company reported it had received commitments from investors for a $35.5 million capital raising.

The placement of 16,136,364 shares, which Element 25 said received strong support from "a leading Swiss ESG fund", was made at $2.20 per share. That's 8% above Element 25's 30-day weighted average share price before the placement. However, it's 18% below yesterday's closing price of $2.68 per share.

Additionally, as the lead broker in the capital raising, Blackwood Capital will receive a fee of 5% of the raised funds.

How will the funds be used?

Element 25 said it intends to use the new capital to fund the stage 2 expansion of manganese concentrate production. This will occur at its 100% owned Butcherbird Manganese Project in Western Australia.

The company also intends to speed up its plans to produce Lithium-Ion battery-grade manganese sulphate from the project. It stated that:

Manganese is emerging as an increasingly important ingredient for EV batteries, with potential supply constraints for nickel and cobalt forcing battery manufacturers to look to high manganese cathodes to produce the vast amount of cathode material required by the EV industry in coming years.

The recent announcement by Volkswagen reinforces this transition to high manganese content on these cathode materials.

Furthermore, the company said the placement shares would be issued without shareholder approval.

Element 25 share price snapshot

Despite this morning's decline, Element 25 shares are up a jaw-dropping 2,360% over the past 12 months. To put that in some perspective, the All Ordinaries Index (ASX: XAO) is up 47% over that same time.

Year-to-date, the Element 25 share price is up 57%.

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The change came after the company announced this morning that its Butcherbird Project is nearly ready to begin production of ore.

The Element 25 share price has had a monumental year. It's currently holding a whopping 1,132% return over the last 12 months.

By comparison, the All Ordinaries Index (ASX: XAO) is up by 9%.

What's moving the Element 25 share price?

Today's announcement

 Element 25 announced this morning that it will begin producing ore later this month, with pre-commissioning activities commencing today.

The project is expected to be powered up by the end of the week. Dry commissioning will then begin, with the mine finalised and productive by second half of March 2021.

Element 25 believes manganese is becoming an increasingly important ingredient in the making of batteries to power electric vehicles.

It has noted potential supply constraints on both nickel and cobalt, which could cause battery manufacturers to turn to high manganese cathodes to produce the cathode material required for electric vehicles.  

About the Butcherbird Project

The Butcherbird Project, located in Western Australia, will eventually produce high purity manganese sulphate monohydrate to power electric vehicles.

The project's advanced flowsheet development work confirmed a unique ambient temperature and atmospheric pressure leach process for the ore. It plans to combine this with offsets to target the world's first Zero Carbon Manganese for electric vehicle cathode manufacture.

The company is planning to integrate renewable energy into the project's energy needs over time, hoping to eventually reach a zero-carbon footprint.

Element 25 holds 100% ownership of the Butcherbird Project, having footed a $17 million bill for the first stage of development.

A Pre-Feasibility Study conducted by Element 25 highlighted the potential for significant expansion of the Butcherbird Project's initial production within the first 12 months of operation.

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This comes following a progress report on its Butcherbird Manganese Project in Western Australia, released to the ASX this morning.

Element 25 shareholders have enjoyed a truly monumental year. Despite the shares tumbling 44% from 19 February through to 23 March during the wider COVID-19 market rout, the Element 25 share price is up a stellar 829% in 2020.

By comparison the All Ordinaries Index (ASX: XAO) is up just over 1%.

What did Element 25 report?

In this morning's progress update, Element 25 reported it had obtained environmental approvals for its 100% owned Butcherbird Project.

Western Australia's state government departments have given the green light to the company's Approval and Mining Proposal, and the State Mining Engineer has also provided its permission. These were the last hurdles Element 25 needed to clear before commencing construction at Butcherbird.

The company reported it plans to commence immediately, in line with its plans for first production in the first quarter of FY2021.

According to Element 25, Butcherbird is Australia's largest onshore manganese deposit, with some 260 million tonnes of manganese ore in an area with high end local infrastructure.

The company recently finished a pre-feasibility study on developing the deposit in order to produce manganese concentrate for export to generate early cash flow with "a modest capital requirement".

Commenting on the regulatory approvals, Element 25 managing director Justin Brown said:

This is the culmination of an extensive environmental assessment and community consultation process and it allows E25 to continue to rapidly progress its mine development and construction plans. The company has had an accelerated development timeline in place form the start and the fact that it continues to deliver the project on time and on budget is a testament to the dedication of the E25 team.

What does the company do?

Element 25 is engaged in the acquisition and exploration of metal properties in Australia. Its projects include Holleton, Butcherbird Manganese, Butcherbird Copper, Green Dam, Mount Padbury, and Pinnacles Cobalt/Nickel.

Element 25 shares first began trading on the ASX in November 2006. Based on the current Element 25 share price, the company has a market capitalisation of around $220 million.

The post Up over 800% this year, the Element 25 (ASX:E25) share price slips on progress report appeared first on The Motley Fool Australia.

Shares in the emerging manganese miner tanked over 10% to $1.31 in the last hour of trade. The sell-off comes despite this being a positive day for miners.

ASX miners leading the S&P/ASX 200 Index (Index:^AXJO) higher today as a surge in the iron ore price and the impending approval of a COVID‐19 vaccine is lifting the sector.

Element 25 share price takes a hit

Element 25 provided an update to its Pre-Feasibility Study (PFS) that was released in May. The miner added "expansion case options" which indicated that its Butcherbird project could be worth as much as $1.1 billion on a pre-tax basis.

This compares to its base case net present value estimate of $583 million (pre-tax) with a mine life of 40 years and an internal rate of return of 337%.

What's more, management highlighted the low capital requirement for the project of $17 million plus another $3.2 million for working capital.

Fast payback and cashflow

The average operating cash flow from Butcherbird is estimated to be $39.6 million a year in the first five years of production under the base case.

This gives the project a simple payback period of six months from first production. That's a very short payback period.

"Beneficial production is scheduled to commence in Q1 2021," said the miner in its ASX statement.

"The base case involves the annual production and sale of 364,000tpa (Yr 1-5 range 300,000-390,000) of lump manganese ore grading 30-35% Mn.

"Mining requires no drill and blast, utilising dozer ripping and mining with loaders or excavators."

No upgrade to Butcherbird resources

However, management made no changes to its reserve estimates. Proven and probable ore reserve still stands at 50.55 million tonnes (Mt) at 10.3% manganese (Mn) containing 5.22Mt Mn.

While the project's Native Vegetation Clearing Permit (NVCP) and Project Management Plan (PMP) have been approved, Element 25 is still waiting for its mining proposal, works approval and water abstraction approvals.

Element 25 share price still near record highs

The big drop in the Element 25 share price may look alarming, but it should be taken into context. The E25 share price surged by nearly 700% since the start of calendar 2020 even with today's loss.

It's unlikely that shareholders would be too worried, especially given the outlook for electric vehicles. Element 25's manganese is meant to be used in batteries.

The post Element 25 (ASX:E25) tumbles on latest PFS update appeared first on The Motley Fool Australia.

What did Element 25 announce?

The company reported that its Butcherbird manganese project in Western Australia was on track for commissioning in the first quarter of calendar year 2021.

Key features of the Butcherbird asset include:

• More than 260 million tonnes of manganese or measured, indicated and inferred
• Maiden proved and probable reserves of 50.6 million tonnes at 10.3% manganese for 5.22 tonnes of contained manganese
•  Pre feasibility studies based on measured and indicated resources suggest the asset could operate for 42 years
• The location is adjacent to bitumen roads and access to Port Hedland bulk handling facilities
• Described by the company as offering "low cost mining" with "simple processing"

The company advised a mining lease has already been granted with all access agreements finalised. Permit applications were well advanced and the company has secured project financing. 

Element 25 said it aimed to become a globally significant manganese producer, with a goal to generate strong, sustainable investor returns over the long term.

Also of note was a special resolution put forward at the AGM for a 10% placement facility. This would allow the company to conduct placements for up to 10% of its shares in the 12 months following the AGM in addition to the 15% already allowed. The resolution passed with the 75% majority necessary. 

About the Element 25 share price

Element 25 is minerals exploration and development company with assets in Western Australia.  

In the quarter to 30 September 2020, Element 25 spent $2.80 million on operations, mainly on exploration and development. At 30 September 2020, Element 25 had cash of $7.65 million in addition to listed equity investments worth $4.16 million.

The Element 25 share price is up 831.58% since its 52-week low of 9.5 cents, and up 420.59% since the beginning of the year. The Element 25 share price is up 345% since the start of last year.

The post Why the Element 25 share price climbed 13% today appeared first on The Motley Fool Australia.