INR - Ioneer Limited

[Dona Ferentes]

The company has come out with a bit of a clarification in response to story in the AFR

Ioneer wishes to provide "more clarity around the process and the current status of the discussions with potential strategic partners. As disclosed in the Company’s DFS, published 30 April 2020, ioneer intends to fund its Rhyolite Ridge Lithium-Boron Project with various sources of capital including strategic partnering, debt and equity. It is currently in advanced discussions with a wide range of strategic players who could become part of its funding solution.
These discussions are progressing well, despite the current conditions, which is a strong reflection of the significant value that ioneer is positioned to deliver over the life of the Project.
However, ioneer reiterates that this process is ongoing, and while discussions are advanced, a formal strategic partnering process has not commenced as reported."

While StreetTalk said INR had

...formalised the data room and diligence materials for a handful of interested parties which have already been whittled down from a longer list. Goldman is running the process out of its New York office and is understood to have approached Asian manufacturers keen to gain a foothold in the United States such as LG and Panasonic, as well as global chemical companies, ESG companies, and financial investors.

Ioneer unveiled a definitive feasibility study for its Rhyolite Ridge project to the market in April, which revealed a total capital expenditure of $US785 million ($1.15 billion) was required to complete the project, including an 8 per cent contingency. Enter the need for a strategic partner.

- does it matter? Market isn't reacting one way or the other yet. The devil is always in the detail, and (close to) a Billion Dollars is a big bite for a company with M/C under $200mill.

 

[greggles]

INR has been doing very well since the end of September, when it announced both its partnership with Caterpillar and its September 2020 Quarterly financial results and Activity Report.

The financials revealed expected continuing losses while the Activities Report detailed the progress the company has made with its Rhyolite Ridge Lithium-Boron Project in Nevada, USA. Here are the highlights:

Construction is due to commence next year and based on the April DFS it looks to be a low cost, long life project that is finally coming to fruition after substantial development.

The bet with INR appears to be the Lithium price. If it increases the low cost nature of the project will substantially increase the value of the Rhyolite Ridge Project to the company.

After doing some research it appears that the consensus is that the current lithium oversupply will be exhausted by mid-2021 and demand (and the spot price) will then pick up as supply thins out. If so, that will work in INR's favour and is definitely something to keep an eye on.

 

[Dona Ferentes]

Ioneer signed a binding offtake agreement with the Korean EcoPro Innovation Co for three years for lithium carbonate from Ioneer's lithium boron project in Nevada.

The agreement covers 7000 tonnes a year, 2000 of which is firm and 5000 of which is optional. The price is determined quarterly and denominated in US dollars. EcoPro will convert the lithium carbonate into lithium hydroxide at its cathode plant.

 

[Miner]

Incidentally this thread started with a capital raise of 6.3 cents and the holders are ten baggers.
However for the context, I am wondering why market punished the capital raise ?
Yes, it has diluted the shareholding but it also invited fund a and a cornerstone partner giving confidence on the company's growth.
Could our INR specialists please sharevyour thoughts?
DNH.

 

[Captain_Chaza]

The INR chart looks impressive too so in she goes for my 2022 year competition
Triple Tops are almost unheard of on the Global Exchanges
AND
The Good just get Gooder and is in Lithium to boot
How can I lose?

 

[Miner]

I should have posted some key announcements for those not following INR

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02468886-2A1347180?access_token=83ff96335c2d45a094df02a206a39ff4

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02460063-2A1342498?access_token=83ff96335c2d45a094df02a206a39ff4

The directors have continued to accept performance rights against cash for their fees, suggesting the insiders have faith and are committed to putting money on the future of this company.
Disclaimer - have a small investment in INR and have performed better than some of the others in my super portfolio so far. Thanks to @peter2 @greggles, @Dona Ferentes, and other posters for their thoughtful postings, motivating me though it was my laggard action to break my slumber.

 

[Dona Ferentes]

as always, getting the money in the door is hard. Latest Ann might ease the pain?

• ioneer has been invited into the due diligence process for the U.S. Department of Energy’s Advanced Technology Vehicles Manufacturing Loan Program
• ioneer continues to advance the Rhyolite Ridge Lithium-Boron Project which includes a Definitive Feasibility Study (Fluor), full simulation pilot plant (Kemetco Research) and binding offtake contracts
• ioneer has applied for a DOE loan to support the US$490 million strategic investment by Sibanye Stillwater in the Rhyolite Ridge Project, which is expected to produce 22ktpa lithium carbonate/hydroxide and 174ktpa boric acid – making it the largest lithium and second largest boric acid producer in America

 

[Miner]

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02482885-2A1354599?access_token=83ff96335c2d45a094df02a206a39ff4

With the announcement even Lithium is current hype but INR dropped.
Was it because the plant construction is in 2023 and a possible CR to support ?
Do hold
However Simple Wallet Street has published two things: Future growth being negative but price projection is positive

 

[Ann]

I feel if INR can claw above the 200dsma it might well have a bit of upside.

 

[Boggo]

My pick for August comp. Going in the right direction so far.

(click to expand)

 

[Dona Ferentes]

ioneer Signs Binding Lithium Offtake Agreement with Prime Planet Energy & Solutions

Highlights:
• Lithium from ioneer’s Rhyolite Ridge project in Nevada will be supplied directly to Prime Planet Energy & Solutions, Inc.
• In support of end-to-end U.S. Electrified Vehicle supply chain and delivering on ioneer’s initiatives, lithium supplied by ioneer will be produced, refined and incorporated into lithium-ion batteries by PPES, which will promote electrification in the U.S. Market
• The 5-year binding Agreement is for a total of 4,000 tonnes per annum of lithium carbonate from ioneer’s Rhyolite Ridge Lithium-Boron operation in Nevada and represents approximately 19% of annual output in the first 5 years of production
• Prime Planet Energy & Solutions is a joint venture battery company between Toyota Motor Corporation and Panasonic Corporation

... and now comes the hard part. . Traders have reacted, up a few percent, but early days.

 

[barney]

My pick for August comp. Going in the right direction so far.

Off topic but how is your "ticker" going @Boggo ? You had a bit of trouble post vax. Hope it has rectified or at least improved

 

[Boggo]

Off topic but how is your "ticker" going @Boggo ? You had a bit of trouble post vax. Hope it has rectified or at least improved

All been stable for a while now @barney Thank You.

 

[Dona Ferentes]

Ioneer has secured a $US700 million ($1 billion) loan from the US Department of Energy to develop its lithium-boron project at Rhyolite Ridge in Nevada, renewing the Biden administration’s pledge to expand production of critical minerals.

The department’s Loan Programs Office will provide what is its first-ever loan for the processing component of a project where lithium is extracted and refined at site.

While other Australian companies have achieved huge deals with the US government, the size of Ioneer’s loan is by far the largest and cheapest, being struck at the 10-year US bond rate for a term of 10 years.

 

[Dona Ferentes]

Ioneer has secured a $US700 million ($1 billion) loan from .... being struck at the 10 year US bond rate for a term of 10 years.

Which has been in the 3.45-3.50%pa range of late.

(The 2-year is 4.2%, just for the record)

 

[Sean K]

Ioneer has secured a $US700 million ($1 billion) loan from the US Department of Energy to develop its lithium-boron project at Rhyolite Ridge in Nevada, renewing the Biden administration’s pledge to expand production of critical minerals.

The department’s Loan Programs Office will provide what is its first-ever loan for the processing component of a project where lithium is extracted and refined at site.

While other Australian companies have achieved huge deals with the US government, the size of Ioneer’s loan is by far the largest and cheapest, being struck at the 10-year US bond rate for a term of 10 years.

The US is proving to put their $$ where their words are with investments in critical minerals and focussing on the US domestic market.

 

[Dona Ferentes]

The US is proving to put their $$ where their words are with investments in critical minerals and focussing on the US domestic market.

Term sheet finalised; likely to pop

 

[Dona Ferentes]

where is it up to?

During the quarter the company increased the South Basin mineral resource at the Rhyolite Ridge project in Nevada, USA, by a whopping 168% to 3.4 Mt lithium carbonate equivalent and 14.1 Mt of boric acid equivalent.

“We look forward to building on South Basin extensions and related exploration efforts on the much larger North Basin with similar mineral composition,” MD Bernard Rowe.

In May, the company announced a partnership with Nevada-based Dragonfly to deliver these critical electric vehicle battery materials from Rhyolite Ridge.

And they’re making progress in the NEPA process following the completion of the first public scoping period during the quarter and the decision of the Bureau of Land Management to publish a Notice of Intent in December 2022.

The next phase, the release of a draft Environmental Impact Statement, is expected to be completed in Q3 2023.

Detailed engineering and procurement activities are advancing in preparation for the commencement of construction in H1 2024.

“The Company is financially well positioned as we approach the final permitting stage with conditional debt and equity commitments of nearly US$1.2 billion,” Rowe added