Ioneer- betting on the future of electric vehicle industry.

Welcome Investors!!!

We will be talking today about ioneer which explores and develops mineral properties and holds Rhyolite Ridge Project located in Nevada.
Rhyolite Ridge Project is a large, shallow lithium-boron deposit located in southern Nevada, USA and is owned 100% by ioneer.
Lithium and boron are used in the production of the batteries.
Ioneer is planning to position itself towards future growth of the electric vehicles industry.
Rhyolite Ridge Project is located 330 km from the Tesla Reno Giga factory.
And 530 km from Los Angeles. As you can see it has a really strategic location.
The lithium and boron Mineral Resource in Rhyolite Ridge Project is estimated at 146.5 million metric tonnes, including an Ore Reserve of 60.0 million metric tonnes, an increase in Reserves from the Pre-Feasibility Study of 280%.
The company expects to mine and process 63.8 million metric tonnes over the 26-year mine life at an average annual rate of 2.5 million metric tonnes per year.


What are the advantages of the company:

1-Long mine life which is 26 years with rapid payback of capital after 5.2 years from first production.

2- The lowest cost producer globally of lithium carbonate and lithium hydroxide with a diversified and stable revenue mix from the co-production of lithium and boron.

3-Capital estimate of US $785 million, with additional US$74 million in capital to construct the lithium hydroxide unit in year 3 to be funded from free cash flow from operations – included in the sustaining capital plan.

4- Production to start by the middle of 2023 with a 26-year mine life and the further potential to increase total Resource and Reserves.

5-Nevada is a first-rate, mining friendly jurisdiction, and strategically located close to Tesla Giga factory and California export ports.

6-Detailed construction timeline developed in Definitive Feasibility Study with clearly defined permitting process and sufficient cash on hand to advance the Project.

OK that was 6 really good advantages of the company, now let's take a look at the 6 disadvantages of the company:

1-Company is really small which poses a significant risk especially for companies in the mining industry which is extremely risky and cyclical.

2-Company won’t start production for another 2 years. During the next 2 years a lot of things can happen.
A lot of good things and bad for the company can happen.

3-Company currently doesn’t make any money. Only one way to make money is by raising more capital from investors and diluting more company shares.

4-Company would be facing significant competition from cheaper lithium and boron producers from outside of the US. Especially from Chile with the largest lithium reserves in the world at an estimated 7.5 million metric tonnes.
Then there is; China, Australia and Argentina.

5-Company is dependent on Tesla’s success obviously. If something goes wrong with Tesla
Ioneer is going to be in trouble.

6-Recent $80 mil placement. It is basically share dilution and there is nothing wrong with diluting share since they are not making any money but if you take a look at the details of the placement it says on the top:
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
My question is what is the secret, why they do not want you to send this to anybody in the US? Does anybody understand this, because I don’t.


Resources:
https://www.ioneer.com/files/announce...
https://www.ioneer.com/rhyolite-ridge...
https://seekingalpha.com/symbol/GSCCF


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