Metals One

Overview
Price performance
Financials
Research
Thematics

Metals One is developing the Black-Schist project in Finland and the Råna project in Norway, with the aim of becoming a key source of strategic metals to the EU. Both projects have the potential to produce ‘class 1’ high-purity nickel and are either adjacent or analogous to other world-class deposits.

Metals One had an end-FY23 book value of 4.24p/share. At the same time, its US$14.17 per tonne of in-situ nickel resource rating is at a 42.0% discount to the updated global average of US$24.41/t. This appears to afford little or no premium for Metals One’s other assets (eg Råna), which we calculate could be worth 0.35p/share, its premium location in Europe or its potential to expand resources via additional exploration (note that it is targeting 3x growth in its Black-Schist project resource to c 200Mt).

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Metals & Mining |
Initiation

24.09.24

Metals One — First by name, first by nature

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Sector

Metals & Mining

Equity Analyst

Lord Ashbourne

Director of Content, Mining

Key Management

Daniel Maling

Chairman
Jonathan Owen

Chairman

Balance Sheet

Forecast net cash (£m)

0.7

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
%	1M	3M	12M
Actual	16.7	(30.0)	(81.9)
Relative	20.4	(27.8)	(83.3)
52 week high/low	3.1p/0.4p

Financials

We calculate that the existing resource at Metals One’s Black-Schist project in Finland is capable of supporting a low capex, low opex bio-heap leach mine (akin to Terrafame) to produce c 14,000tpa nickel sulphate for the electric vehicle battery market over c 20 years and could be in production as early as 2030 at a low carbon intensity. Currently the subject of a preliminary economic assessment, we estimate that a project NPV of just US$4.1m or higher could catalyse a re-rating in Metals One’s shares.