ioneer Ltd

INR Details

ioneer Ltd (ASX: INR) is an Australian company involved in the lithium-boron supply and has a significant project as Rhyolite Ridge in Nevada, United States.

Result Performance for the Six Months Ended 31 December 2021 – (H1FY22)

• The loss from ordinary activities stood at $6.5 million in H1FY22 versus the loss of $5.8 million in H1FY21.
• The net assets grew to $283.4 million as of 31 December 2021 from $191.1 million as of 30 June 2021, mainly led by the placement to Sibanye-Stillwater and regular investment in the Rhyolite Ridge asset.
• Exploration and evaluation expenditure stood at $18.9 million in H1FY22 (H1FY21: $12.9 million), advancing the engineering and permitting of the Project.
• Cash on hand as of 31 December 2021 stood at $149.0 million (30 June 2021: $83.1 million).

Source: Company Reports, Analysis by Kalkine Group

Quarterly Activity Report Released on 27 April 2022

• Total cash on hand stood at A$144.2 million (US$108.2 million), of which 39% is held in USD cash and cash equivalents as of 31 March 2022.

Outlook

The company is actively working on getting Federal permission by obtaining the NOI and commencing the NEPA process, also beginning a work program to augment early-stage exploration of the North Basin. Further, it is closing additional binding offtake contracts for lithium sales. In line with this, it progressed well in securing debt funding with associated due diligence. Meanwhile, progressing well for secondary listing of ioneer’s shares in the US.

Key Risks

The company is exposed to supply chain constraints and labour shortages. Moreover, the company is yet to generate revenue, raising concern over shareholders' returns.

Technical Overview

Daily Price Chart

Source: REFINITIV, Note: Purple color line reflects Relative Strength Index (14-Period)

Stock Recommendation

The stock is trading below the average of its 52-week price range of $0.855-$0.270, which indicates a good opportunity for accumulation.

Considering the factors above, we give a “Speculative Buy” recommendation on the stock at the closing market price of $0.485 per share, down 3.0% as of 7 June 2022.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

ioneer Ltd (INR) is a part of Kalkine’s Global Fully Charged Product

Note 1: The reference data in this report has been partly sourced from REFINITIV.

Note 2: Investment decisions should be made depending on the investors’ appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the analysis has been achieved and subject to the factors discussed above alongside support levels provided.

Technical Indicators Defined:-

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.