Australian Mines enters scandium research partnership
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
Australian Mines Limited (ASX:AUZ) has confirmed its commitment to maximising revenue and shareholder value from the company’s Sconi Project in Queensland.
The company’s plans to commercialise the high-purity scandium oxide — intended to be produced alongside the project’s cobalt sulphate and nickel sulphate output — have been bolstered by news today that it has entered into a partnership with UK-based technology company Metalysis.
The agreement will add to the ongoing research and development program around “a solid-state process to produce a low-cost yet superior aluminium-scandium alloy for potential use by the automotive and aerospace industries”.
Of course the stock remains speculative at this stage, so investors should seek professional financial advice if considering AUZ for their portfolio.
Originally invented by the University of Cambridge (UK) and then commercialised by Metalysis, this innovative solid-state process has already demonstrated an ability to produce an aluminium-scandium master alloy containing 15 times the amount of scandium compared to conventional industry processes.
In this instance, a master alloy refers to a pre-alloyed concentrate of scandium metal that is added to an aluminium melt to produce the desired final product; an aluminium-scandium alloy useful in automotive and aerospace manufacturing, which generally contains only 0.2% scandium metal.
What’s the upside?
If AUZ is able to utilise Metalysis’ process to produce a scandium-rich master alloy, which would result in a final product up to 30% scandium metal (compared to the industry’s current 2% scandium metal), the outcome could be a 93% reduction in the amount of scandium master alloy required to make the final aluminium–scandium metal requested by end-users.
It follows, according to AUZ, that the success for this development could equate to a significant reduction in the cost of producing the final aluminium–scandium metal — to the extent that AUZ’s contract offer price for the products would be materially lower than most other specialty metals currently available on the market.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.