Latest news with #LindianResources'
Sydney Morning Herald
a day ago
- Business
- Sydney Morning Herald
Lindian locks in $91.5M to greenlight Malawi rare earths mine
Lindian Resources' share price has jumped out of the gates today on heavy turnover and hit another fresh high of 26.5 cents a share, after the company banked $91.5 million from an oversubscribed jumbo placement. The new funding clears the decks for the company to start full-scale construction of its flagship Kangankunde rare earths project in Malawi. The capital raising was struck at 21c a share from the issue of 435.7 million shares spread over two tranches. Lindian said the offer drew a stampede of support from local and international institutions and that bids flooded in well above the target. Investor demand was so strong that Lindian only had to trim 6.7 per cent off its last close to seal the deal. Against recent trading averages, the placement was even sweeter, coming in at a 12.5 per cent premium to the five-day mark and a whopping 48 per cent above the 20-day average. 'We now have a very clear, fully funded and unencumbered route to first production.' Lindian Resources executive chairman Robert Martin Now the cash has been secured, the board has quickly moved to sign off on a final investment decision, which will allow the company to break ground on stage one of Kangankunde. It has locked in first production for the fourth quarter of 2026. Lindian Resources executive chairman Robert Martin said: ' Declaring the final investment decision sets Lindian on the pathway to being the world's next rare earths producer, a truly remarkable position for the company to be in. We now have a very clear, fully funded and unencumbered route to first production.' The project hosts a globally significant deposit with a 45-year mine life, ore reserves grading 2.9 per cent total rare earth oxides (TREO) and low radioactive levels - a combination hard to find in the rare earths world. Stage one construction will see Lindian build a straightforward open-pit mine coupled with a simple gravity and magnetic processing plant capable of churning out about 15,300 tonnes per year of premium monazite concentrate grading 55 per cent TREO.
The Age
a day ago
- Business
- The Age
Lindian locks in $91.5M to greenlight Malawi rare earths mine
Lindian Resources' share price has jumped out of the gates today on heavy turnover and hit another fresh high of 26.5 cents a share, after the company banked $91.5 million from an oversubscribed jumbo placement. The new funding clears the decks for the company to start full-scale construction of its flagship Kangankunde rare earths project in Malawi. The capital raising was struck at 21c a share from the issue of 435.7 million shares spread over two tranches. Lindian said the offer drew a stampede of support from local and international institutions and that bids flooded in well above the target. Investor demand was so strong that Lindian only had to trim 6.7 per cent off its last close to seal the deal. Against recent trading averages, the placement was even sweeter, coming in at a 12.5 per cent premium to the five-day mark and a whopping 48 per cent above the 20-day average. 'We now have a very clear, fully funded and unencumbered route to first production.' Lindian Resources executive chairman Robert Martin Now the cash has been secured, the board has quickly moved to sign off on a final investment decision, which will allow the company to break ground on stage one of Kangankunde. It has locked in first production for the fourth quarter of 2026. Lindian Resources executive chairman Robert Martin said: ' Declaring the final investment decision sets Lindian on the pathway to being the world's next rare earths producer, a truly remarkable position for the company to be in. We now have a very clear, fully funded and unencumbered route to first production.' The project hosts a globally significant deposit with a 45-year mine life, ore reserves grading 2.9 per cent total rare earth oxides (TREO) and low radioactive levels - a combination hard to find in the rare earths world. Stage one construction will see Lindian build a straightforward open-pit mine coupled with a simple gravity and magnetic processing plant capable of churning out about 15,300 tonnes per year of premium monazite concentrate grading 55 per cent TREO.
West Australian
a day ago
- Business
- West Australian
Lindian locks in $91.5M to greenlight Malawi rare earths mine
Lindian Resources' share price has jumped out of the gates today on heavy turnover and hit another fresh high of 26.5 cents a share, after the company banked $91.5 million from an oversubscribed jumbo placement. The new funding clears the decks for the company to start full-scale construction of its flagship Kangankunde rare earths project in Malawi. The capital raising was struck at 21c a share from the issue of 435.7 million shares spread over two tranches. Lindian said the offer drew a stampede of support from local and international institutions and that bids flooded in well above the target. Investor demand was so strong that Lindian only had to trim 6.7 per cent off its last close to seal the deal. Against recent trading averages, the placement was even sweeter, coming in at a 12.5 per cent premium to the five-day mark and a whopping 48 per cent above the 20-day average. Now the cash has been secured, the board has quickly moved to sign off on a final investment decision, which will allow the company to break ground on stage one of Kangankunde. It has locked in first production for the fourth quarter of 2026. The project hosts a globally significant deposit with a 45-year mine life, ore reserves grading 2.9 per cent total rare earth oxides (TREO) and low radioactive levels - a combination hard to find in the rare earths world. Stage one construction will see Lindian build a straightforward open-pit mine coupled with a simple gravity and magnetic processing plant capable of churning out about 15,300 tonnes per year of premium monazite concentrate grading 55 per cent TREO. Even with rare earths prices stuck in the doldrums, Lindian's numbers shine – its feasibility study pegs Kangankunde at a pre-tax net present value of US$794 million (A$1.225 billion) with a blistering 99 per cent internal rate of return and payback in barely a year. Lindian says it is already looking well beyond its first pour. Hot on the heels of a mining licence expansion from 900 hectares to 2500ha, management is eyeing a stage two development that could lift output to as much as 50,000t a year. Engineering studies are already underway to design a modular expansion, and a chunk of the placement proceeds have been earmarked to fast-track this growth pipeline. ASX heavyweight Iluka Resources has backed the company by locking in a 15-year offtake deal for 6,000t a year of concentrate from Kangankunde to feed its Eneabba refinery in Western Australia. The agreement also gives Lindian guaranteed revenue, with a floor price set above its production costs, cementing rock-solid economics from day one. Iluka has further sweetened the deal with a US$20 million (A$31 million) loan to fast-track stage one construction and grabbed first rights over stage two production of up to 25,000t a year for 15 years. In return, the mining major must cover half of Lindian's expansion costs and agree to new commercial terms, such as pricing. If it takes up the option, Iluka could secure up to 31,000t of monazite concentrate a year. Iluka's fully integrated Eneabba refinery, now under construction, is a first for Australia and has been largely funded by a $1.65 billion non-recourse loan from the Federal Government's $2 billion critical minerals facility. For Lindian, the pieces are falling neatly into place. With funding in the bank, Iluka at its side and one of the world's best undeveloped rare earth deposits ready to crack open, the company has vaulted from hopeful explorer to fully funded developer in record time. All eyes are now on Kangankunde as the countdown begins to 2026, when Lindian aims to join the elite ranks of the world's rare earths producers. Is your ASX-listed company doing something interesting? Contact:
Yahoo
15-03-2025
- Business
- Yahoo
We Think Lindian Resources (ASX:LIN) Needs To Drive Business Growth Carefully
Just because a business does not make any money, does not mean that the stock will go down. For example, although software-as-a-service business lost money for years while it grew recurring revenue, if you held shares since 2005, you'd have done very well indeed. But while the successes are well known, investors should not ignore the very many unprofitable companies that simply burn through all their cash and collapse. So should Lindian Resources (ASX:LIN) shareholders be worried about its cash burn? For the purposes of this article, cash burn is the annual rate at which an unprofitable company spends cash to fund its growth; its negative free cash flow. First, we'll determine its cash runway by comparing its cash burn with its cash reserves. Check out our latest analysis for Lindian Resources A company's cash runway is calculated by dividing its cash hoard by its cash burn. When Lindian Resources last reported its December 2024 balance sheet in March 2025, it had zero debt and cash worth AU$6.7m. Looking at the last year, the company burnt through AU$12m. So it had a cash runway of approximately 7 months from December 2024. To be frank, this kind of short runway puts us on edge, as it indicates the company must reduce its cash burn significantly, or else raise cash imminently. You can see how its cash balance has changed over time in the image below. Although Lindian Resources reported revenue of AU$179k last year, it didn't actually have any revenue from operations. To us, that makes it a pre-revenue company, so we'll look to its cash burn trajectory as an assessment of its cash burn situation. We'd venture that the 70% reduction in cash burn over the last year shows that management are, at least, mindful of its ongoing need for cash. Admittedly, we're a bit cautious of Lindian Resources due to its lack of significant operating revenues. So we'd generally prefer stocks from this list of stocks that have analysts forecasting growth. While we're comforted by the recent reduction evident from our analysis of Lindian Resources' cash burn, it is still worth considering how easily the company could raise more funds, if it wanted to accelerate spending to drive growth. Issuing new shares, or taking on debt, are the most common ways for a listed company to raise more money for its business. Many companies end up issuing new shares to fund future growth. By comparing a company's annual cash burn to its total market capitalisation, we can estimate roughly how many shares it would have to issue in order to run the company for another year (at the same burn rate). Lindian Resources' cash burn of AU$12m is about 11% of its AU$111m market capitalisation. As a result, we'd venture that the company could raise more cash for growth without much trouble, albeit at the cost of some dilution. On this analysis of Lindian Resources' cash burn, we think its cash burn reduction was reassuring, while its cash runway has us a bit worried. Even though we don't think it has a problem with its cash burn, the analysis we've done in this article does suggest that shareholders should give some careful thought to the potential cost of raising more money in the future. On another note, Lindian Resources has 5 warning signs (and 3 which are a bit concerning) we think you should know about. Of course Lindian Resources may not be the best stock to buy. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
