Australia's largest stock trading and investment forum Australia's #1 stock forum

IBG

0.00%

0.3¢ ironbark zinc ltd

Ann: Agreement with China Non Ferrous, page-25

First 25 Last

Share
Profile

Follow
djr67

540 Posts.

9

25/01/17

08:47

Post #: 22121435
Share

Originally posted by Yeatesy ↑

Billjaz,

This raise has nothing to do with NFC as such. It is to keep the wheels turning over the coming months that it will take to finalise all the components required before the funding can come through. My guess is 25,000,000 shares issued at a slight discount to current price.

It has been explained before, but again the price that NFC has the option to acquire up to 19.9% will be based on an independent valuation of the project which will flow from the revised capex and opex figures which are also required for the financing. Therefore a dollar figure has certainly not been agreed to as yet. My feeling/understanding is that NFC will want to take this up but If they choose not to take up the 19.9% stake based on the independent valuation then there are a number of options;
- NFC take up a lower portion
- NFC don't take the option but offer a buy in on a lower valuation
-NFC don't take the option and IBG looks for an alternative investor (glencore, Nystar, etc)

Once IBG gets the 70% via NFC, then they will be able to get the other 30% one way or the other. The future share price will obviously be largely dependent on them obtaining this 30% with minimal project and/or share dilution.

In regards to NFC potential buy in price, they will of course be buying a percentage of the project rather than the company, but if we attribute 100% of the company value to the citronen project then a starting point would be the 2013 FS which valued the project NPV at US$600m pre tax & US$354 post tax. So 19.9% = US$70.5m ($A94m) therefore the 80.1% to IBG would be valued at A$377m or about 71 cents per share!

It is likely that there will be a further future raise to fill any construction funding shortfall. Even if they had to take the shares on issue from the existing 505m to say 800m (personally don't think it will be to this extent) that still equates to a per share NPV value of close to 50 cents. (if you want to use pre tax valuations then add another 70% to those figures)

This all points to massive upside that is shifting more and more from a possibility to probability day by day!

Yeatesy.

Expand

Well said Yeatesy.

One would assume with IBG announcing the progress with China Non Ferrous (CNF) on the back of the trading halt for CR that CNF are expecting a payment for their work or a contribution towards the tender bid. With this assumption such a payment would expedite the process and de-risk CNF from the costs associated with putting such a complex tender bid together for the banks.

If i'm right, a great move on behalf of both businesses to each have hurt money involved and to work together as a team. Thumbs Up!

GLA and as UFC's Bruce Buffer says "It's Time"

Last edited by djr67: 25/01/17

IBG Price at posting: 9.2¢ Sentiment: Buy Disclosure: Held
3 Upvote

0 Great analysis

Reply

Top Stories

TRP

Tissue Repairs soars nearly 32% on TGA approval for wound healing gel

Capital raisings wrap: Brainchip, Ovanti, Lake and VHM

BGL

Bellevue aims for 45% production increase by FY 2028, announces $150M placement

PEC

Perpetual sniffs TREOs beyond 4000ppm at Raptor play in Brazil

MM1

Geochemical work at Newington picks up gold and copper anomalies for Midas

There are more pages in this discussion • 18 more messages in this thread...

First 25 Last

Add IBG (ASX) to my watchlist

(20min delay)
Last 0.3¢		Change 0.000(0.00%)		Mkt cap ! $5.077M

Open	High	Low	Value	Volume
0.3¢	0.3¢	0.3¢	$4.488K	1.495M

Buyers (Bids)

No.	Vol.	Price($)
19	21983646	0.2¢

Sellers (Offers)

Price($)	Vol.	No.
0.3¢	2404153	3

View Market Depth

No.	Vol.	Price($)
19	21983646	0.002
5	7299989	0.001
0	0	0.000
0	0	0.000
0	0	0.000

Price($)	Vol.	No.
0.003	2404153	3
0.004	30955031	20
0.005	8500330	6
0.006	4800000	2
0.007	715300	3

Last trade - 10.15am 25/07/2024 (20 minute delay)

IBG (ASX) Chart

Ann: Agreement with China Non Ferrous, page-25

Tissue Repairs soars nearly 32% on TGA approval for wound healing gel

Capital raisings wrap: Brainchip, Ovanti, Lake and VHM

Bellevue aims for 45% production increase by FY 2028, announces $150M placement

Perpetual sniffs TREOs beyond 4000ppm at Raptor play in Brazil

Geochemical work at Newington picks up gold and copper anomalies for Midas

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Ann: Agreement with China Non Ferrous, page-25

Top Stories

Tissue Repairs soars nearly 32% on TGA approval for wound healing gel

Capital raisings wrap: Brainchip, Ovanti, Lake and VHM

Bellevue aims for 45% production increase by FY 2028, announces $150M placement

Perpetual sniffs TREOs beyond 4000ppm at Raptor play in Brazil

Geochemical work at Newington picks up gold and copper anomalies for Midas

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News