Salient points from the research: We initiate coverage of ABR...

Salient points from the research:

• We initiate coverage of ABR with a BUY recommendation and a A$5.08/share target price as it looks to advance its Fort Cady Borate Mine Project.
• Fort Cady is a 24.4 Mt H3BO3 (boric acid) project in California. ABR intend to use the Mannheim process to generate HCl requirements and a SOP credit stream.
• Fort Cady has tier-one potential, with the deposit offering decades of mine-life, lowest decile operating costs, and strong return metrics.
• Lithium potential is underappreciated but will be demonstrated in upcoming BFS.
• Concentrated market structure provides “multibagger” upside.
• US re-domiciling expected to provide stronger investor attention and project financing options.

Future Catalysts:

• Potential resource upgrade – Q1 CY22
• US re-domiciliation – Q1 CY22
• Bankable Feasibility Study (BFS) – Q2 CY22
• Offtake agreements – ongoing
• Partnership agreements – ongoing
• Debt project financing – Q3/4 CY22
• First production (pilot-scale) – Q3/Q4 CY22