Jane Morgan Management
- Process progressing for secondary listing on NASDAQ via an ADR
- Interviews completed for US investment banking partners with final proposals expected shortly
- Work underway to re-engineer early Fort Cady Borate Mine phases to bring forward EBITDA
- Stronger EBITDA profile in early years expected to be positive for US listing given US peer valuations
- Company still targeting first production in Q3, CY2021 with construction ongoing
American Pacific Borates Limited (ASX:ABR) ("ABR" or the "Company") is pleased to provide an update on its activities
at the Fort Cady Borate Mine, in Southern California.
NASDAQ ADR Process
The Company has commenced a process to enable a secondary trading of its securities on the NASDAQ via an
American Depositary Receipt ("ADR"). Positive discussions have been held with NASDAQ representatives and US
investment banking partners that should expedite the process. The Company expects to receive final proposals
shortly. Feedback continues to be positive from the US investor outreach program with fund managers and other
potential investors suggesting a US listing would make it easier for US investors to own shares in the Company.
As previously noted, this workstream is a priority for the Company given the location of its projects and majority of
its management, the likely scenario that all products will be sold into the US, and the current valuations of US listed
speciality industrial minerals companies.
Re-Engineering of Early Phases of Fort Cady Borate Mine
The Company is currently considering some engineering initiatives designed to bring forward EBITDA to earlier
years of operation. The strategy revolves around potentially increasing early SOP production and focussing on the
production on-site of a granular SOP+B speciality fertiliser.
The Company believes a larger EBITDA in earlier years may be positive for a US listing given US peer valuations
driven by EBITDA multiples. It also believes there may be a large market for its SOP+B specialty fertiliser given
initial crop trial results demonstrating increasing yields of over 100% in some trials (refer graph below).
The re-engineering is focussed on SOP production which will not impact the Company's current target of being in
initial production in Q3, CY2021.
/Public Release. This material from the originating organization/author(s) might be of the point-in-time nature, and edited for clarity, style and length. Mirage.News does not take institutional positions or sides, and all views, positions, and conclusions expressed herein are solely those of the author(s).
