Ioneer (ASX:INR) share price plummets 16% after partnership news

Here’s a look at all the details of Ioneer’s joint venture…
The post Ioneer (ASX:INR) share price plummets 16% after partnership news appeared first on The Motley Fool Australia. –

The Ioneer Ltd (ASX: INR) share price has sunk this morning. In early trade, shares in the emerging lithium-boron company are 16.89% lower, trading at 61.5 cents.

This move follows Ioneer’s announcement on Thursday it was entering into a strategic partnership with a multibillion-dollar multinational mining company.

Teamwork to make the dream work

The Ioneer share price is plummeting this morning after its latest release to the ASX.

According to the announcement, the future-focused mining company has formed a joint venture (JV) with the world’s largest primary producer of platinum, Sibanye Stillwater.

Under the newly formed JV, Ioneer and Sibanye Stillwater will hold a 50/50 ownership. As part of the deal, Sibanye will contribute US$490 million in direct funding for its 50% share, while Ioneer will contribute 100% of its South Basin Rhyolite Ridge Lithium-Boron Project.

Additionally, Ioneer’s North Basin of Rhyolite Ridge will be contributed to the JV if Sibanye Stillwater exercises its option by providing a further US$50 million.

About the new partner…

A little background on Sibanye, the A$13 billion mining company operates across South Africa, the United States, Zimbabwe, Canada, and Argentina. In the trailing 12-month period, Sibanye recorded more than A$15 billion in revenue and approximately A$4.23 billion in profits. Partnering with such a large mining company could buoy the Ioneer share price.

Interestingly, today’s presentation specifies that this outcome is the product of an 18-month long process.

The South African mining company was deemed the appropriate partner due to its extensive experience in developing large projects. Furthermore, Sibanye Stillwater also has deep relationships with automakers and automotive OEMs, with a strong focus on battery metals.

In addition to the direct funding, Sibanye Stillwater will also subscribe for 145.9 million fully paid ordinary shares in Ioneer. This will be conducted through a placement, subject to shareholder approval, at 65.5 cents per share.

The proceeds of US$70 million will be used to cover the costs of advancing the project to the construction stage.

Management commentary

Commenting on the strategic partnership, Ioneer executive chair James Calaway said:

We are extremely pleased to welcome Sibanye-Stillwater, a leading international mining company, as a strategic partner in the Rhyolite Ridge Project.

With a strong strategic partner in place, we can now look to finalise the debt financing for the project and move towards construction. We are confident in the alignment of our companies. Our partnership with Sibanye-Stillwater will allow ioneer to unlock the tremendous, long-term value of Rhyolite Ridge.

What’s next for the Ioneer share price?

According to the timeline presented, shareholders will be given the chance to vote on the US$70 million placement to Sibanye Stillwater by 20 September. Subsequently, a meeting will be held on 21 October 2021 to approve the placement. If all goes to plan, the company expects the placement to be completed in the December 2021 quarter.

Finally, if all approvals are received, Ioneer will target the construction of Rhyolite Ridge in the second half of 2022.

The Ioneer share price has climbed a staggering 572% in the past year.

The post Ioneer (ASX:INR) share price plummets 16% after partnership news appeared first on The Motley Fool Australia.

Should you invest $1,000 in Ioneer right now?

Before you consider Ioneer, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Ioneer wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Why the Ioneer (ASX:INR) share price is leaping to an all-time high today
Here’s why the Ioneer (ASX:INR) share price hit an all-time high today

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!