Sparks commentary - Metlen Energy & Metals

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Sparks - Metlen Energy & Metals

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Metlen Energy & Metals (LSE: MTLN) – Second gallium supply agreement supports demand visibility ahead of Q327 production
Published by Harry Kilby

Metlen Energy & Metals has signed a long-term commercial agreement with a major Japanese chemical company for the future supply of gallium, representing up to 16% of annual production from its new Greek facility, which is currently under construction. Commercial terms were not disclosed. The agreement is Metlen’s second strategic arrangement for future gallium supply and, according to management, provides further evidence of international demand for a European source of the critical raw material.

Metlen expects annual gallium production of 50 tonnes, with commercial production planned to begin in Q327, and stated that it is now almost certain that the full output will be sold out several months before production starts. The project is supported by Metlen’s integrated production model, including proprietary technology and secured feedstock from its wholly owned Aluminium of Greece refinery, and forms part of the Critical & Rare Metals sub-sector within the M Metals business unit.

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