Quarterly Activities Report to 31 March 2020

Highlights

ASM Metals Business

  • Successful production of pre-sintered permanent magnets, with properties and quality confirmed by the Korean Institute of Rare Metals (KIRAM).
  • A 75kg/day run of titanium (Ti) metal powder was successfully produced by Ziron Tech at a pilot scale (metal purity 99.918%, O2 < 300ppm).
  • Quality and significant environmental benefits of high purity titanium powders confirmed by independent 3D-printed metal part producer HANA AMT. Completion of the 5,200tpa Korean Metals Plant (KMP)1 study confirming strong economics
    • Estimated capital: approximately US$35-45 million
    • Estimated annual revenue: approximately US$180-190 million
    • Estimated annual EBITDA: approximately US$45-$50 million
  • Signing of a Memorandum of Understanding (MoU) with the Chungcheongbuk-do (Chungbuk) Provincial Government and Cheongju-si (Cheongju), City Government to locate ASM’s first metals plant (KMP) within the Ochang Foreign Investment Zone in South Korea.
MoU Signing Ceremony with Chungcheongbuk-do Provincial Government and ASM’s David Woodall

Dubbo Project Optimisation

  • South Korean companies identified to progress a build, own, operate (BOO) development for the provision of renewable power, chlor-alkali plant, directly for the Dubbo Project.
  • Progressing opportunities to leverage the full breadth and depth of South Korean manufacturing capabilities to provide valuable support in the development of the Dubbo Project.

Corporate

  • Announced an equity raising to primarily fund the final engineering and construction of the proposed 100% owned KMP, and accelerate the Dubbo Project’s detailed construction design.
  • Executed non-disclosure agreements and advanced discussions with several large South Korean corporations as prospective partners.
  • Continued discussions with potential strategic, and engineering and construction, partners in South Korea to present the potential economic benefits of ASM’s “mine to manufacturing” strategy.
  • Progressing discussions with South Korean Government and financial groups regarding the financing of the Dubbo Project.
  • Advanced discussions and negotiations with South Korean metals manufacturers about titanium, NdFeB, dysprosium and zirconium offtake arrangements.
  • Strategic engagement with key South Korean Government departments (Korean Institute of Technology, KORES and Ministry of Trade and Industry) on the development of the Dubbo Project.

 

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1 Refer to ASX announcement 2 March 2021. The material assumptions underpinning the scoping study continue to apply and have not materially changed

Completion of non-renounceable entitlement offer and shortfall notice

ASM announces the Company’s pro-rata non-renounceable entitlement offer (Entitlement Offer) of new ordinary shares in the Company (New Shares), closed on 16 April 2021 and proceeds of $26,919,096 have been raised pursuant to the Entitlement Offer.

The Company received applications from eligible shareholders for 5,608,145 New Shares at the issue price of $4.80 per New Share, representing an approximate 65.23% take-up. Together with the placement to institutional and sophisticated investors of $65,000,000 (refer ASX release 26 March 2021), the gross proceeds under the capital raising are $91,919,096 (Capital Raising). The placement to institutional and sophisticated investors completed on 6 April 2021.

 

The proceeds of the Capital Raising will be used to provide funding for ASM to focus on advancing key workstreams including engineering and development of the Korean Metals Plant (KMP) and the FEED Study for the Dubbo Project, while also providing additional working capital and funding of corporate costs.

Managing Director, David Woodall stated “This Capital Raising builds on the momentum that ASM has generated through the technical milestones achieved since listing in July last year. The funds raised will cover important work on both the KMP and the Dubbo Project as ASM advances its critical metals strategy.”

The Directors wish to thank shareholders for their continued support of the Company, and again welcome new shareholders who participated in the Capital Raising.

New Shares are expected to be issued on Friday, 23 April 2021, with normal trading of the new shares expected to begin on Monday, 26 April 2021.

ASM maintains the flexibility to place shortfall under the entitlement offer but has made no decision to do so at this stage.

For further information regarding the Offer please contact Company Secretary, Dennis Wilkins, on +61 8 9227 5677 or via email at dennis@dwcorporate.com.

 

Download the ASX Announcement

 

ASM