ASM reports rare earth strategic partnership and Q2 2023 financial results
July 24, 2023
Australian Strategic Materials Ltd (ASM), West Perth, Australia, has published its Quarterly Activities Report for the second quarter 2023. The report shared a number of notable achievements during the quarter, as well as financial and market news.
ASM reported that it commenced a strategic partnership with US-based rare earth magnet manufacturer Noveon Magnetics Inc, with the signing of a sales agreement for neodymium iron boron (NdFeB) alloy with ASM’s subsidiary KSM Metals Co. Ltd. This agreement provides for the sale of 100 tonnes of NdFeB alloy from the KMP, to be delivered in accordance with an agreed schedule during the period up to the end of March 2024.
The growing global significance of rare earth elements and their applications is said to be driving ASM’s customer expansion outlook. Along with Korea, Japan and Europe, the US represents a major potential market for ASM’s critical products. ASM’s agreement with Noveon signifies a growing strategic supply into the US and provides a pipeline of sales for the KMP.
The report also highlighted that ASM secured the supply of rare earth oxides through a binding agreement with Vietnam Rare Earth Company this quarter. The agreement provides for the delivery of 100 tonnes of product for the remainder of 2023 and that the parties will negotiate in good faith for a longer-term supply agreement.
ASM also shared that it has diversified its funding strategy for it’s Dubbo Project via the award of a AUS $6.5 million grant under Tranche 2 of the Australian Government’s Critical Minerals Development Program. The Dubbo Project is located near Toongi, 25 km south of Dubbo, in central-western New South Wales, Australia. ASM intends to develop the Dubbo Project to produce metal oxides in the form of chemicals, powders and metals at its Dubbo site. The funding will be utilised to progress the Dubbo Project’s Engineering, Procurement and Construction (EPC) Definition activities with respect to non-process infrastructure outside of the process plant. It will also reportedly allow ASM to optimise the design of the Dubbo Project’s carbon, water and residue management in support of the Company’s commitment to strong ESG performance.
ASM was also awarded ISO 45001 accreditation and recognised as an industry leader by the Daejeon Regional Office of the Ministry of Employment and Labor for the risk assessment practices implemented at the Korean Metals Plant. This joins its existing ISO 9001 and ISO 14001 accreditations and demonstrated an ongoing commitment to safety and quality in its operations.
The report also touched on ASM’s financial news from this quarter sharing that its cash position as of June 30, 2023 was AUS $56.7 million. The cash movement within the quarter included the following:
- AUS $3.3M of investment in the Dubbo Project including the EPCD work by HEC and the purchase of engineering and metallurgical services
- AUS $2.3M grant funding relating to the Tranche 2 of the Australian Government’s Critical Minerals Development Program (CMDP)
- AUS $2.1M of business costs relating to business development, marketing and administration
- AUS $0.4M net expenditure relating to agricultural activities
- AUS $3.1M of Korean expenditure principally relating to inventory, administrative and personnel costs net of Korean Government grant funding
To read the full report, click here.
