0R15 9025.0 0.0% 0R1E 9410.0 0.0% 0M69 None None% 0R2V 247.99 9682.643% 0QYR 1567.5 0.0% 0QYP 439.3701 -2.9016% 0RUK None None% 0RYA 1597.0 1.2682% 0RIH 195.55 0.0% 0RIH 191.4 -2.1222% 0R1O 225.5 9683.0803% 0R1O None None% 0QFP 10475.8496 107.8542% 0M2Z 252.573 0.2373% 0VSO 33.0 -7.3164% 0R1I None None% 0QZI 622.0 0.0% 0QZ0 220.0 0.0% 0NZF None None% 0YXG 222.05 -4.1318%
The Offer
Company Overview
On November 12, 2021, Innogy Ltd, an unlisted Australian public company, was established with the goal of acquiring and developing nickel, other battery cathode minerals including lithium and cobalt, and gold properties in Tanzania. The Business is a fully owned subsidiary of EcoGraf, which is currently listed on the ASX under the ASX code EGR. Since its inception, the Company has amassed a sizable nickel, lithium, cobalt, and gold tenement package in Tanzania totaling 5,300 km2, of which 4,700 km2 is nickel-prospective (comprising around 2,300 km2 of awarded tenure and 3,000 km2 of awaiting tenure).
Key Highlights
Primary Offering: To fund up to AUD 8,000,000, (before costs) the Offer comprises the initial public offering of up to 40,000,000 Shares at an issue price of AUD 0.20 each Share. The Offer consists of two parts: (a) the Priority Offer to Eligible EcoGraf Shareholders; and (b) the General Offer, under which any Shares left over after the Priority Offer has been made might be assigned to any other applicant. The Offer requires a minimum subscription of AUD 5,000,000 (25,000,000 Shares). This Prospectus also contains an ancillary offer of up to 900,000 Lead Manager Shares and 1,000,000 Lead Manager Options to Canaccord (or its nominees).
Use of proceeds:
Dividend policy: The exploration and appraisal of the company's projects are expected to cost significantly, according to the company. At least the first two years from the date of this Prospectus are anticipated to be dominated by these operations as well as the potential purchase of interests in other projects.
Considering this, the Corporation does not anticipate issuing any dividends in the near to medium term.
The Directors will ultimately decide whether or not to pay dividends on behalf of the Company, and their decision will be based on a variety of factors, including the availability of distributable earnings, operating performance, financial health, anticipated future capital needs, general economic conditions, and other relevant factors.
Commodity Analysis:
Nickel: Pressured by growing global output and worries about consistently poor demand, nickel futures were trading close to a five-month low of USD 22,000 on March 22nd. The price of a tonne of nickel was trading at USD 23,000. According to the most recent figures from the International Nickel Study Group, Indonesian output continues to rise, driving a huge 22% increase in worldwide nickel production in January. The agency also stated that mined nickel output will probably reach 3.2 million tonnes annually at the present rate. With approximately 50% of the world's supply coming from Indonesia, production increased by about 50% from the previous year to 1.58 million tonnes in 2022, causing a glut on the nickel market worldwide.
Lithium: Late in March, lithium carbonate prices in China fell by 55% year-to-date to CNY 260,000 a tonne, the lowest level in 15 months, as increased production and a decline in demand bolstered predictions of a supply glut this year. In 2022, China stopped providing financial incentives for the new energy car industry and began rewarding buyers of new electric vehicles with cash awards, which slowed the need for battery supplies. Battery makers had unsustainable large inventories due to the overproduction of batteries towards the end of 2022 to profit from subsidies, which led to the sale of goods at severe discounts with drastic capacity reductions across the whole supply chain.
Gold: Investors bet that interest rates have likely achieved or are close to their top in current tightening cycle, which led to gold stabilizing at USD 1,980 an ounce on Friday and indicating that it will rise more than 8% in March. The reduction of global inflationary pressures and major central banks' attempts to avert a more serious banking crisis were the main drivers of such expectations. This month, demand for safe haven assets like gold was boosted by the recent banking instability that was brought on by the failure of two regional institutions in the US.
Financial Highlights (Expressed in AUD):
Key Management Highlights
Risk Associated (High)
Investment in the IPO of “IOG” is exposed to a variety of risks such as:
Conclusion
The Firm is a mining exploration company; however, it’s a pre-revenue stage company. So, the Corporation won't be able to make money until it can show that minerals are located at the Projects, that they can be mined and sold, if any, and that they are commercially recoverable. The Corporation may make money by selling its property and/or by obtaining royalties from the Projects. As a result, it is important to understand that the Company's ability to profit from its operations depends on a number of uncertain future events as well as the high volatility of the prices of the underlying commodities.
Hence, given the financial performance of the company for the period ending December 31, 2022, incurred net losses, and associated risks “Innogy Limited (IOG)” IPO seems “Neutral" at the IPO price.
Disclaimer
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