5EA - 5E Advanced Materials

[System]

American Pacific Borate & Lithium Limited is an Australian registered company that has recently acquired the Fort Cady borate-lithium project located in the state of California, USA.

It is anticipated that ABR will list on the ASX during July 2017.

http://americanpacificborate.com

 

[Miner]

Hello ABR followers and Chartist gurus
Could you please comment on this chart and ABR in general?
DNH but watching after seeing their recent announcements . With FOREX scenario, this could be a deal breaker also??

 

[Ann]

Hello ABR followers and Chartist gurus
Could you please comment on this chart and ABR in general?
DNH but watching after seeing their recent announcements . With FOREX scenario, this could be a deal breaker also??
View attachment 91834

Sorry Miner, didn't see this post, I guess no-one else did either!
I reckon your chart looked like it was going up, then it dropped back and now it has gone up again but is currently doing a little retrace but it is still riding above the 50dsma and the 200dsma. Money flow is falling away a bit and there are no big volume spikes. Let's see how it goes.

 

[System]

On October 18th, 2019, American Pacific Borate & Lithium Limited changed its name to American Pacific Borates Limited.

 

[Dona Ferentes]

American Pacific Borate & Lithium (ABR).

(dated 2017)
..... this one is turning the lithium story on its head with a proposal to develop one of the few borate mines outside Turkey.

According to ABR CEO Anthony Hall, most lithium projects contain borates and most borates contain lithium, but metallurgy issues can make the lithium hard to extract. The borates are usually a by-product of lithium, but in this case the popular industrial ingredient (in the form of boric acid) is driving the economics of ABR's fully-owned Fort Cady project in California's Mojave Desert.

Boric acid has not fewer than 300 industrial uses, including heat-resistant glass, fibreglass insulation, ceramics and fire retardants. In the current global market of four million tonnes, 55-60 per cent of output is controlled by Turkish state-owned monopoly Eti Mine Works.

Rio Tinto operates the Borax mine near Fort Cady. It's barely a line item in the global giant's accounts but is profitable and accounts for a further 20-25 per cent of global output.

The former head of Spanish potash hopeful Highfield Resources, Hall formed ABR to acquire Fort Cady from mining veteran Roy Shipes, now ABR's chairman. As well as being a former US air force captain, Shipes has held senior roles at OK Tedi Mining, Southern Peru Copper and Phelps Dodge.

ABR is testing the age-old theory that it takes the third owner of a mine to make even money: Fort Cady has had two previous owners who sank $US50m into developing the mine and ABR will leverage this handiwork. Fort Cady already has mining and environmental permits, but is waiting the re-granting of environmental approvals bestowed on the second owner (who ran out of money, as you do).

Investors are awaiting a scoping study on Fort Cady and an official maiden resource by the end of the calendar year.

ABR already points to an initial 90,000 tonnes per annum operation with an upfront cost of $US80m-$US90m and an ongoing EBITDA margin of $US500 a tonne on the current boric acid price of about $US1000 a tonne.

Fort Cady's historical resource suggests 115 million tonnes of borates translating to around 13 million tonnes of boric acid, enough for a mine life of about 100 years. "We have good visibility around those numbers and we are happy,'' Hall says.

Eventually ABR plans to triple output to 270,000 tonnes of boric acid, as well as producing the desirable fertiliser potassium sulfate. As for the lithium, it's a case of suck it and see. But as it's a waste material, any lithium production would be an added extra.

Hall reckons half of the lithium borate material is attached to clay (which makes extracting the lithium problematic). But the remaining half is contained in brines - an easier proposition.

Happily, the environmental permitting process in Trumpland is more straightforward than in Spain, where Highfield's Muga project has been waiting. and waiting , for the government to sign the paperwork.
Tim.boreham@independentresearch.com.au

ABR raised $15m in an IPO and listed in July 2017. ABR shares have more than doubled since listing at 20c apiece.

Now, 2020, @ 53c. Second breath. Now American Pacific Borates (ABR). Lithium was a fizzer/ impediment, maybe boron has a future?

 

[Chronos-Plutus]

American Pacific Borate & Lithium (ABR).

(dated 2017)
..... this one is turning the lithium story on its head with a proposal to develop one of the few borate mines outside Turkey.

According to ABR CEO Anthony Hall, most lithium projects contain borates and most borates contain lithium, but metallurgy issues can make the lithium hard to extract. The borates are usually a by-product of lithium, but in this case the popular industrial ingredient (in the form of boric acid) is driving the economics of ABR's fully-owned Fort Cady project in California's Mojave Desert.

Boric acid has not fewer than 300 industrial uses, including heat-resistant glass, fibreglass insulation, ceramics and fire retardants. In the current global market of four million tonnes, 55-60 per cent of output is controlled by Turkish state-owned monopoly Eti Mine Works.

Rio Tinto operates the Borax mine near Fort Cady. It's barely a line item in the global giant's accounts but is profitable and accounts for a further 20-25 per cent of global output.

The former head of Spanish potash hopeful Highfield Resources, Hall formed ABR to acquire Fort Cady from mining veteran Roy Shipes, now ABR's chairman. As well as being a former US air force captain, Shipes has held senior roles at OK Tedi Mining, Southern Peru Copper and Phelps Dodge.

ABR is testing the age-old theory that it takes the third owner of a mine to make even money: Fort Cady has had two previous owners who sank $US50m into developing the mine and ABR will leverage this handiwork. Fort Cady already has mining and environmental permits, but is waiting the re-granting of environmental approvals bestowed on the second owner (who ran out of money, as you do).

Investors are awaiting a scoping study on Fort Cady and an official maiden resource by the end of the calendar year.

ABR already points to an initial 90,000 tonnes per annum operation with an upfront cost of $US80m-$US90m and an ongoing EBITDA margin of $US500 a tonne on the current boric acid price of about $US1000 a tonne.

Fort Cady's historical resource suggests 115 million tonnes of borates translating to around 13 million tonnes of boric acid, enough for a mine life of about 100 years. "We have good visibility around those numbers and we are happy,'' Hall says.

Eventually ABR plans to triple output to 270,000 tonnes of boric acid, as well as producing the desirable fertiliser potassium sulfate. As for the lithium, it's a case of suck it and see. But as it's a waste material, any lithium production would be an added extra.

Hall reckons half of the lithium borate material is attached to clay (which makes extracting the lithium problematic). But the remaining half is contained in brines - an easier proposition.

Happily, the environmental permitting process in Trumpland is more straightforward than in Spain, where Highfield's Muga project has been waiting. and waiting , for the government to sign the paperwork.
Tim.boreham@independentresearch.com.au

ABR raised $15m in an IPO and listed in July 2017. ABR shares have more than doubled since listing at 20c apiece.

Now, 2020, @ 53c. Second breath. Now American Pacific Borates (ABR). Lithium was a fizzer/ impediment, maybe boron has a future?

I will have a good look at this stock and project over the couple of days.

 

[Dona Ferentes]

American Pacific Borates Limited is an ASX listed company focused on becoming a globally significant specialty fertiliser producer of potassium sulphate SOP, via the Mannheim process, along with HCl. As well, it will produce Boric acid and gypsum.

Most global production of borates comes from mining and processing colemanite, borax or kernite ores.
•Some production comes from borate rich brines.
•ABR's Fort Cady is a colemanite ore body. Located in California, at an existing mine site.

Boron/ Borate is one commodity that the Chinese don't dominate.
80% of the market is derived from 2 countries (Turkey and USA)

BORATES –Duopoly market with very few global sources of borates
.. The global boric acid equivalent market is around 4.5m tonnes per annum. Around 20% of this market is for fertiliser application with boron being the second most consumed micro nutrient in North America by value.
.. Turkish Government owned Eti Maden controls the marginal unit of supply and will continue to meet demand.
.. Eti Maden appears to be the only borate producer with meaningful additional capacity capable of meeting additional supply requirements.
..Rio Tinto Borates (majority of US production; approx 20% of global prod) appears to be operating at full capacity with flat supply for over eight years.
.. One of the few commodities that China doesn't play a large part (and as consumers take 37% of production)

USA is net importer of SOP; currently only one domestic producer and it is high cost.

ABR is taking a phased approach to production, targeted for 3Q21. Borates first. Total capex US$737mill. Ultimately, will have multiple revenue streams with revenue split in full production estimated to be: 54.0% boric acid; 43.2% SOP; and 2.8% gypsum.

The share price has run a bit already

(Don't hold)

 

[Dona Ferentes]

Trading Halt "pending an announcement in relation to project financing."

 

[Dona Ferentes]

raised $31.8mill via a placement at 60c a share (sophisticated and insto plus management).... now to fast track construction activities at Ft Cady borate mine

 

[Dona Ferentes]

quarterly out:
they're getting on with it. Placement cash in the bank
- the Company is now fully financed for construction of Phase 1A of Fort Cady Borate Mine (capex is estimated at US$50.3m)
• Substantive construction activities commenced
• A$38.7m cash at bank as at 30 June 2020

SP at highs ~ 74c

 

[peter2]

Since the last post, the price of ABR continued higher and then took a while to break through 1.00. Once it did it went straight to 2.00.
Recently broke through 2.10 resistance and was looking good until one of those market surprises.

ABR announces that they're deferring development of their Fort Cady borate mine to focus on a larger borate operation and to enhance a US listing. So they're back to drilling to expand the resource and hopefully raise capital for a larger operation.

Don't you just love surprises like these.

 

[peter2]

We're over the recent "surprise" and wondering if ABR is ready for a speculative buy. Things can't get worse can they? I wouldn't put it past this mgt team as they've already shot themselves in the foot once. ABR must now be treated like any other mineral exploration minnow. They've got a resource and are drilling to see how big or small it really is.

 

[frugal.rock]

Things can't get worse can they?

Doesn't quite look like it after today? Nice one Poiter. ?

 

[Greynomad99]

ABR had a breakout yesterday. A couple of weeks ago I was asked for my thoughts on someone's long-term trade and I thought others here might be interested in those musings. I've updated those comments today and think perhaps ABR has some merit for a trade - despite the perilous general trading conditions in force at the moment.

ABR - 14 September 2021 - Robert Norman Share Charting

 

[peter2]

The price BO mentioned in the earlier posts - failed. Price traded below the prior resistance level (1.60) for about one month before tackling the same BO level. Supply tried to stop it but there wasn't enough to offset the demand and price has since gone higher.

This week price BO of a tight trading range and after two bullish bars, ABR has released an SEC compliant MRE for it's listing in the US.

Currently held in the Combo Portfolio. Fortuitous (lucky?) re-entry last week.

 

[Dona Ferentes]

and soon to spin out from ABR:

5E Advanced Materials Inc

Listing date	01 February 2022 12:00 PM AEDT ##
Contact details	https://americanpacificborates.com/
Principal Activities	Proposed holding company of American Pacific Borates Limited (ABR) (and its subsidiaries) - a minerals exploration and production company focused on the development of its 100% owned Fort Cady Borate Project.
GICS industry group	TBA
Issue Price	N/A
Issue Type	CHESS Depositary Interests 10:1
Security code	5EA

 

[Dona Ferentes]

which listed yesterday.... has traded as high as $2.95 but closed at a low of $2.72 for its 2 days of new listed life.

 

[Dona Ferentes]

From late 2021. It wasn't a spinout, but a NASDAQ listing... with capital raise. Raised A$37million in November

American Pacific Borates Limited is an ASX listed company focused on advancing its 100% owned Fort Cady Integrated Boron Facility located in Southern California, USA. The Company is currently working through a process to ensure a strong listing on NASDAQ having appointed a US Advisory Board and completing various activities including strengthening its executive management team, focusing on a larger initial mining operation to deliver stronger earlier EBITDA and progressing discussions with US based investment banks, potential US partners and debt capital markets advisors.

Now 5EA is listed in USA and CDIs trading here. At the time:

Share Price A$2.75/share
Market Capitalization ~US$810 million
Net Cash ~US$60 million

Based on the ABR share register as at 23 February 2022, 41,769,310 5EA securities are anticipated to be issued to Scheme Shareholders (either as shares of common stock or an equivalent number of CDIs, on the basis of 10 CDIs for every 1 share of common stock).

Accordingly, the capital structure of 5EA immediately following implementation of the Scheme will be:
(a) 41,769,310 shares of common stock (equivalent to 417,693,100 CDIs on the basis of 10 CDIs for every 1 share of common stock); and
(b) 5,510,000 options.

Then of course there are the incentive options associated with the float. An additional 400,000 shares of common stock will be issued to the Company Advisory Board upon the listing of 5EA on NASDAQ. In addition, 5EA has agreed to provide share based remuneration for services provided by its Advisory Board as follows:
(a) 150,000 shares of common stock, to be issued on 12 April 2022; and
(b) up to an additional 1,000,000 shares of common stock to be issued in four equal tranches if the 10 day VWAP of 5EA shares exceeds the benchmark amounts of A$30, A$40, A$50 and A$60 (converted to USD at the USD:AUD exchange rate on the Business Day prior to the Scheme Implementation Date) within six months of 5EA listing on NASDAQ or by 31 December 2022 (whichever occurs later).

 

[frugal.rock]

Home - 5E Advanced Materials, Inc

5eadvancedmaterials.com

With thanks to @Dona Ferentes for mentioning this in the ABR thread. Any ideas what settlement date is on this at the moment? (Currently trading deferred settlement)

 

[frugal.rock]

From the ABR thread.
(American Pacific Borate now not quoted)

From late 2021. It wasn't a spinout, but a NASDAQ listing... with capital raise. Raised A$37million in November


Now 5EA is listed in USA and CDIs trading here. At the time:


Based on the ABR share register as at 23 February 2022, 41,769,310 5EA securities are anticipated to be issued to Scheme Shareholders (either as shares of common stock or an equivalent number of CDIs, on the basis of 10 CDIs for every 1 share of common stock).

Accordingly, the capital structure of 5EA immediately following implementation of the Scheme will be:
(a) 41,769,310 shares of common stock (equivalent to 417,693,100 CDIs on the basis of 10 CDIs for every 1 share of common stock); and
(b) 5,510,000 options.

Then of course there are the incentive options associated with the float. An additional 400,000 shares of common stock will be issued to the Company Advisory Board upon the listing of 5EA on NASDAQ. In addition, 5EA has agreed to provide share based remuneration for services provided by its Advisory Board as follows:
(a) 150,000 shares of common stock, to be issued on 12 April 2022; and
(b) up to an additional 1,000,000 shares of common stock to be issued in four equal tranches if the 10 day VWAP of 5EA shares exceeds the benchmark amounts of A$30, A$40, A$50 and A$60 (converted to USD at the USD:AUD exchange rate on the Business Day prior to the Scheme Implementation Date) within six months of 5EA listing on NASDAQ or by 31 December 2022 (whichever occurs later).