Australian Strategic Materials (ASX:ASM) concluded binding sales purchase orders with Noveon Magnetics in the US for 15 tonnes of neodymium-iron-boron alloy and with Vacuumschmelze in Germany for 7.2 tonnes of the alloy from its Korean Metals Plant in South Korea, according to a Friday Australian bourse filing.
Delivery of the Noveon order will start with an initial shipment this month under an existing supply agreement, the filing said. The balance is expected to be delivered during the second half.
The first shipment for the Vacuumschmelze will start in July and continue through the second half.
The price of the alloy was set at a fixed rate for each specification by reference to the agreed specification of the alloy as well as the prevailing market prices of the relevant rare earth oxides.
The firm will use existing stock and oxides supplied by an Australian supplier.
Recent product validation work carried out at the plant, as well as international trade volatility and geopolitical uncertainty, resulted in an increased number of sales inquiries and accelerated customer discussions, per the filing. The company is in talks with Canada-based Ucore Rare Metals for oxide supply.
Australian Strategic Materials' shares climbed over 23% in recent trading on Friday.
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