Dynamic Metals Ltd (ASX:DYM) non-executive chairman Justin Mannolini has outlined the significant achievements made by the company in 2024, against the backdrop of challenging equity and commodity market conditions particularly in battery metals like lithium and nickel.
Mannolini explained to the AGM that these markets, in particular, have faced headwinds from easing demand and increasing supply, presenting challenges to the company’s strategic positioning since its January 2023 IPO.
MinRes JV boosts exploration capital
Dynamic’s standout achievement this year was securing a joint venture with Mineral Resources Ltd (ASX:MIN) (MinRes) to explore for lithium at the Widgiemooltha Project.
Finalised in July, the agreement delivered an immediate $4 million cash injection, with an additional $1 million expected in July 2025. MinRes has the potential to earn up to an 80% stake in the project by funding exploration through to a decision to mine.
Mannolini highlighted the collaboration as not only a source of non-dilutive funding but also a strategic partnership that leverages MinRes’ lithium industry expertise.
Transition to gold exploration
The Widgiemooltha region’s multi-commodity potential has allowed Dynamic to shift focus towards gold exploration.
Drilling campaigns at the Higginsville and Mandilla prospects have returned promising results, including intersections of 1 metre at 5.61 g/t gold and 4 metres at 1.59 g/t gold at Higginsville.
Rock chip sampling at the Goldrush tenement at Cognac West returned an exceptional result of 2,040 g/t gold, which the company plans to prioritise for further exploration.
Addressing challenges and future prospects
Dynamic has faced cultural heritage issues at the Deep Well project, prompting the suspension of exploration activity in the area. The company is assessing alternative prospects within the project while maintaining its commitment to responsible operations on traditional lands.
To strengthen governance, Dynamic has commenced a process to appoint an additional director with the requisite skills to guide its strategic objectives.
Dynamic Metals is a minerals exploration and development company with a portfolio of assets in Western Australia as well as holding a minority interest in the Prospect Ridge Joint Venture in Tasmania.
With a strong balance sheet, the company remains focused on advancing exploration and development activities while being positioned to capitalise on emerging opportunities.