ENERGY MINERALS

Low share price prompts Leading Edge to consider alternatives

A 77% decline in the share price of Vancouver-based Leading Edge Materials (TSXV:LEM) over the past 12 months has prompted shareholders to push the board to formally examine strategic alternatives to enhance shareholder value.

Staff Reporter
Leading Edge Materials is considering strategic alternatives for the Woxna graphite mine, in Sweden

Leading Edge Materials is considering strategic alternatives for the Woxna graphite mine, in Sweden

Led by chairman Michael Hudson and independent director Filip Kozlowski, the board has undertaken to "identify, examine and consider all potential opportunities that could help increase shareholder value and enable Leading Edge to accelerate customer engagement in the fast-developing European battery materials industry".

Leading Edge said Monday the strategic review could result in a sale, a joint venture or spin-out of any of the company's individual assets and/or a change in the company's management structure.

No fixed timeline has been set for the review.

Vancouver-based Leading Edge owns the fully built and permitted Woxna graphite mine in Sweden, and the Bihor Sud cobalt-copper-nickel project in Romania, both of which are high-merit and unique projects within the European raw materials sector.

Woxna, mothballed since 2001 with only sporadic production since, is a unique European graphite project, ideally positioned to become an important supplier of graphite for the high-growth lithium-ion battery market. As lithium-ion batteries contain up to 20% high purity graphite in the anode, it is an increasingly critical raw material as battery manufacturing expands in Europe and elsewhere outside of China.

Hudson said the company would continue to work on positioning Leading Edge as a key player in the growing market for sustainably sourced strategic and critical raw materials, enabling a new energy paradigm for current and future generations.

Most recently, it was making strides in bench-scale tests to design and install a battery-graphite demonstration plant at the Woxna site, which would be able to produce "meaningful" quantities of lithium-ion battery anode material to prospective industrial customers.

The company's shares traded 10% or C2c higher Monday at 22c, giving it a market value of $21 million. The equity last peaked at 99c a year ago.

 

 

 

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.

editions

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices from interviews with 20+ top mining company executives and an industrywide survey.