The Ioneer Ltd (ASX: INR) share price is one to watch this morning after the Aussie-US lithium miner’s latest quarterly update.
The post Why the Ioneer (ASX:INR) share price is on watch today appeared first on The Motley Fool Australia. –
The Ioneer Ltd (ASX: INR) share price is one to watch this morning after a pre-market update from the Aussie miner.
Why is the Ioneer share price on watch?
Ioneer reported “solid progress” in its cornerstone Rhylite Ridge Project as it recorded a $1.31 million net operating cash flow loss. A number of US and European institutional investors backed an $80 million placement during the quarter. The Ioneer share price rocketed higher during the period despite tumbling after the 38 cents per share placement.
The proceeds from that capital raise provide the funding necessary to accelerate development of the Nevada-based project. Uses include advancing detailed engineering, environmental, research and consulting expenses as well as working capital and general purposes.
Ioneer reported the successful production of battery-grade lithium hydroxide from the pilot plant feedstock. That’s a significant milestone in delivering a higher premium product to boost sales.
Discussions for various offtake agreements are “progressing well” with a first lithium offtake announcement expected in the June quarter.
The Ioneer share price has had a strong start to the year with solid gains in the first quarter. Shares in the Aussie lithium-boron mining group are up by around 30% as at Friday’s close to 36.5 cents per share.
Ioneer is waiting on a Notice of Intent (NOI) from the US Bureau of Land Management (BLM) to pave the way for construction commencement. That’s currently expected to occur during the fourth quarter once the final Record of Decision (ROD) is received.
The company also signed a memorandum of understanding (MOU) with Caterpillar Inc. during the quarter. That MOU came after the completion of an autonomous haul truck feasibility study at the site.
Two new non-executive directors were appointed during the period with both Rose McKinney-James and Margaret R. Walker based in the US.
The Ioneer share price is one to watch this morning after the company’s latest quarterly update. Shares in the Aussie-US miner have been on fire to start the year, climbing 30.4% in 2021.
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Motley Fool contributor Ken Hall 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.