In today’s briefing:
- Azure Minerals (AZS AU): FIRB Approval Concerns Are Overdone
- Ansell Placement – Undertaking a Large Acquisition as Sector Headwinds Remain
- Amaero Internaitonal (ASX:3DA) RaaS Interview Transcript 8 April 2024
- ADX Energy (ASX: ADX): Restarting production at Anshof
- Amaero International Ltd – Binding off-take agreement boosts strategic C103 position
- Fluence Corp Ltd – Watershed complete, growth strategy in play
Azure Minerals (AZS AU): FIRB Approval Concerns Are Overdone
- Azure Minerals (AZS AU) shareholders have overwhelmingly approved the dual-track bid from Sociedad Quimica y Minera de Chile (SQM US) and Hancock. The scheme offer is A$3.70 per share.
- The shares fell 7%, seemingly due to concerns about FIRB approval sparked by FIRB’s request for an extension on 3 April and today’s AFR article on China’s Australian lithium holdings.
- FIRB approval should be forthcoming due to Tianqi Lithium (9696 HK) small indirect interest in Andover, Lithium Power International (LPI AU) precedent, and SQM and Tianqi’s strained relationship.
Ansell Placement – Undertaking a Large Acquisition as Sector Headwinds Remain
- Ansell Ltd (ANN AU) is looking to raise US$262m in its primary follow-on to partially fund its acquisition of KCPPE.
- Despite the firm having been on an acquisition spree, it remains uncertain to us if the market has been factoring in such a large one.
- The deal would be a large one to digest, representing 52.5 days of the stock’s three month ADV.
Amaero Internaitonal (ASX:3DA) RaaS Interview Transcript 8 April 2024
- Interview discusses the offtake agreement and opportunity to expand beyond the current arrangement, the $20m capital raised and outlook for future funding needs, update on strategic equity/debt in the US and milestones to expect over the next six months.
ADX Energy (ASX: ADX): Restarting production at Anshof
- The Permanent Production Facility (PPF), with a capacity of 3,000 bbl/d of liquids, has been commissioned and the Anshof-3 well has recommenced production at a rate of 134 bbl/d with no water.
- The operation has been undertaken in line with expectations and within budget.
- The oil production rate at Anshof-3 is 16% above the rate prior to shut-in.
Amaero International Ltd – Binding off-take agreement boosts strategic C103 position
- Amaero International Ltd (ASX:3DA) is a global specialist in advanced materials manufacturing for the defence, aerospace, and other industrial sectors, developing a critical metals alloy powder manufacturing facility in Tennessee, USA. The company has secured a binding offtake agreement for the supply of C103 additive manufacturing powder, a key milestone in the development of its critical metals powder manufacturing presence in the US. Concurrently, Amaero has raised $20m by way of a placement to institutional investors, which the company anticipates will be the last equity capital raise in the Australian market.
- Going forward, Amaero says it intends to seek equity capital from strategic US investors.
- We continue to incorporate Amaero’s guidance that it expects to report an EBITDA loss of $14m in CY2024 and to break-even in CY2025.
Fluence Corp Ltd – Watershed complete, growth strategy in play
- Fluence Corporation (ASX:FLC) provides water and wastewater treatment, and reuse solutions, for the municipal, commercial, and industrial markets worldwide.
- The company has a proven suite of products and expertise, both proprietary and otherwise, which it has used to deliver more than 850 projects globally.
- After some historical missteps, FLC has now been completely rejuvenated through the appointment of a highly regarded and proven US-based management team and reinvigorated board.
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