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Shell (SHEL) Signs MoU for the Supply of Sulfur to Ioneer

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Shell plc’s (SHEL - Free Report) Canadian subsidiary, Shell Canada Energy, recently signed a non-binding memorandum of understanding (MoU) with the Australia-based lithium-boron producer — Ioneer — for supplying sulfur for Ioneer’s Rhyolite Ridge lithium-boron project in Nevada.

The signing of the MoU builds on the Letter of Intent signed by the two parties in December 2019. As part of the MoU, Ioneer will buy as much as 500,000 tons of high-quality sulfur annually from Shell, which will fulfill the expected annual sulfur requirement for the project.

Rhyolite Ridge, once in operation, is anticipated to have an output of about 20,600 t/y of lithium carbonate, converting in the fourth year to 22,000 t/y of battery-grade lithium hydroxide and 174,400 t/y of boric acid. Moreover, the two firms intend to work together through strategic initiatives focused on fast-tracking the energy transition.

Peter Zissos, GM of Global Sulphur & Thiogro from SHEL, mentioned that the company is excited to expand its collaboration with Ioneer, which includes the sale of sulfur as well as working on various decarbonization solutions. “With safe and reliable delivery of sulfur to customers like Ioneer, Shell Sulphur Solutions is delivering inputs critical for renewable energy production and management," he ended.

Shell, the British energy major, currently has a Zacks Rank #3 (Hold). Some better-ranked stocks from the energy space that warrant a look include Murphy USA (MUSA - Free Report) , Liberty Energy (LBRT - Free Report) and Phillips 66 (PSX - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Murphy USA’s 2022 earnings stands at $26.99 per share, which indicates an increase of 80.9% from the year-ago earnings of $14.92.

MUSA beat the consensus mark for earnings in all the trailing four quarters, the average being approximately 51%.

The consensus estimate for Liberty’s 2022 earnings is pegged at $2.02 per share, which implies an increase of about 298% from the year-ago loss of $1.02.

LBRT beat the consensus mark for earnings in three of the trailing four quarters, the average being around 58.4%.

The Zacks Consensus Estimate for Phillips’ 2022 earnings stands at $20.21 per share, up about 254.6% from the year-ago earnings of $5.70.

PSX beat estimates for earnings in all the trailing four quarters, the average being around 28%.

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