Giyani Metals (TSXV: EMM) has successfully produced its first batch of high-purity manganese oxide (HPMO) from its K.Hill project in Botswana, marking a significant milestone for the company.
The HPMO, a key precursor for producing high-purity manganese sulfate monohydrate (HPMSM) used in electric vehicles and energy storage systems, was produced at the company’s demonstration plant in Johannesburg, South Africa. According to Giyani, the HPMO samples are expected to be shipped this month to potential offtake partners.
HPMO is rapidly gaining traction as the preferred precursor for lithium-manganese-iron-phosphate (LMFP) and lithium-manganese-nickel-oxide (LMNO) batteries.
While HPMSM remains the dominant precursor for nickel-manganese-cobalt (NMC) batteries, both HPMO and HPMSM are suitable for use in LMFP and LMNO batteries.
Following the announcement, Giyani’s shares rose by 6.25% in early Toronto trading, bringing the company’s market capitalization to C$23.3 million ($16.2 million).
Giyani confirmed that its demonstration plant is on track to begin producing HPMSM in the first quarter of 2025. Following that, the company plans to build a commercial plant in Botswana. A definitive feasibility study is currently underway, with completion expected later this year.
A 2023 preliminary economic assessment for the K.Hill project estimated a base case post-tax net present value (discounted at 8%) of $984 million, with an internal rate of return of 29%.
Over the projected 57-year mine life, the project is expected to produce more than 3.5 million tonnes of HPMSM. The K.Hill deposit is estimated to contain over 2.2 million tonnes of manganese oxide resources.
