ORI - Orica Limited

[Tommy Shelby]

Someone made a comment about how good SAP is once integrated into the business.. I heard of how dexus is trying to integrate it into their system - years into the process its cost over $200m and still no closer to being resolved. I wonder how long it will take ORI to resolve

 

[Dona Ferentes]

Orica has been at a high, closing at $17.20, a 40 per cent rise in the share price over the past 12 months

Now in TH as an acquisition and capital raise announced. Placement will be conducted at A$16.00 per New Share.

• Orica has entered into a binding agreement to acquire Axis Mining Technology, a leader in the design, development and manufacture of specialised geospatial tools and instruments for the mining industry
• Represents a highly strategic acquisition and a valuable addition to Orica’s Digital Solutions platform, creating a leading full-service Orebody Intelligence business and positioning Orica to become the industry’s first integrated, end-to-end, mine to mill solutions provider
• Axis’ geospatial technology accelerates Orica’s capabilities to support new mineral discoveries required for decarbonisation – as new mineral discoveries are increasingly located at greater depths and demand more precise geophysics. Axis’ gold and copper exposure also accelerates Orica’s broader commodity mix objectives
• The combination of Orica and Axis is expected to deliver compelling growth opportunities for both businesses, through its combined global network and capabilities
• Acquisition purchase price comprises upfront cash consideration of A$260 million and a deferred earn-out payment up to a maximum of A$90 million, contingent on financial performance and other conditions being met
• Implies an acquisition multiple of 11.8x FY22F EBITDA4 (excluding pro forma synergies) based on the A$260 million upfront cash consideration
• Acquisition (including both Upfront Consideration and Earn-Out), and associated costs to be funded through the proceeds of a fully underwritten A$650 million institutional share placement. Orica will also offer a non-underwritten share purchase plan capped at A$75 million to eligible shareholders in Australia and New Zealand

............ They are raising twice as much as the buy-in (!), the reasons

• working capital and balance sheet capacity
• more financial flexibility to navigate the inflation the company is battling with higher input costs;
• the ongoing supply chain constraints that have necessitated finding new sources of ammonia and ammonium nitrate, sometimes under shorter payment terms; and
• the geopolitical threats to supply, which have required higher inventory holdings to counter supply risks.

.... tech is changing the mining game. Data and number crunching

 

[Dona Ferentes]

Orica raised $41 million under its SPP announced last month in conjunction with a $650 million placement.

The issue price per SPP Share is $15.28 .... participation rate was 8.7 per cent with an average application amount of $13,000

 

[rcw1]

Good morning
Been reported today via News Corp Media,


Orica has booked a $60.1m net profit for the year, after the company’s revenue rose 36 per cent to $7.1bn on the back of strong demand for its products.

The explosives manufacturer released its full-year results on Wednesday, saying sales volumes of ammonium nitrate were up 4 per cent on the previous financial year, with sales of electronic blasting systems up 10 per cent as mining activity increased across the globe.

The company booked underlying net profits of $317m for the full year, and a $60.1m statutory profit after booking $167.9m in impairments – including $90m on its decision to exit its Russian business, and $33m on its Turkish operations.

Have a very nice day today
rcw1 not holding at present

Kind regards
rcw1