Neo's Rare Metals business unit saw impressive growth in Q3 2024, which significantly contributed to Neo's overall performance.
A major factor in this strong showing was exceptional pricing for hafnium, which bolstered revenue and Adjusted EBITDA(1) over the past several quarters. Neo expects hafnium pricing to normalize gradually but remains well-positioned to satisfy global demands for critical metals, including hafnium, niobium, gallium and tantalum.
SINTERED MAGNET FACILITY CONSTRUCTION ON-TIME AND ON-BUDGET
Neo is expanding its European footprint with the construction of a sintered magnet facility in Estonia. This project is set to drive Neo's growth by positioning the Company as a leading magnet supplier in Europe while supporting sustainable and secure local supply chains for critical materials. The project remains on-schedule and on-budget.
The plant is strategically located near Neo's rare earth separation facility and is designed to support demand for clean energy technologies, including electric vehicle traction motors and wind turbines.
Neo has taken a phased investment approach, with Phase 1 providing an initial capacity of 2,000 tonnes per year, with the potential to expand to 5,000 tonnes per year.
Neo estimates that Phase 1 of the new sintered magnet facility in Europe will cost $75.0 million before the European Union grant. Neo has spent $32.7 million in the first nine months of 2024 and $41.7 million in capital expenditures since the project began.
In August 2024, Neo received its first major contract for this facility from a Tier 1 European automotive supplier, with production expected to start in the second half of 2026.
In November 2024, Neo secured a $50.0 million credit facility from Export Development Canada ("EDC"), with a five-year term to support final construction, equipment purchases and commissioning of the facility.