Sorry Miner, didn't see this post, I guess no-one else did either!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
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?
Things can't get worse can they?
| 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 |
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.
Share Price A$2.75/share
Market Capitalization ~US$810 million
Net Cash ~US$60 million
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).
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