Jindalee spin-off Dynamic Metals to list on ASX next Monday

Jindalee Resources (ASX:JRL) has spun off its Australian assets under pending bourse listee Dynamic Metals. 

Dynamic Metals raised $7m in an IPO and begins trading on the ASX Monday 16 January 2023. 

Dynamic issued 35m shares at 20c each for the raise. The company intends to trade under the ticker DYM. 

This move is a while in the making. Back in April last year, Jindalee first flagged its intention to spin off its Australian assets. 

Three projects 

Dynamic Metals will own three projects once it begins trading: 

• Widgiemooltha Lithium Nickel Project (100%) 

• Lake Percy Lithium Nickel Project (100%) 

• Deep Well Nickel-Copper-PGE Project (80%) 

Widgiemootha will be the initial focus for the company, according to Dynamic’s Prospectus, “given its significant position in this proven province which boasts a number of operating mines.” 

Why the spin off? 

Jindalee is ultimately keen to see its coffers fund its sole US lithium play, the McDermitt project. 

Jindalee is seeking to create lithium phosphate at its US project, which Jindalee noted in October last year “has been shown to be a potential precursor chemical for production of Lithium Iron Phosphate (LFP) batteries.” 

Ultimately, Jindalee is taking a stab at competing with the traditional lithium ion battery, a product resilient in its stubbornness against competing substitution technologies. 

Wood Mackenzie expect LFP batteries to overtake Lithium Nickel Cobalt Manganese (NCM) batteries before 2030.

LFP batteries are themselves variations of standard lithium-ion batteries (not to be confused with Lithium Iron), but, one big advantage is that LFP batteries do not require cobalt. 

Considerations 

• Jindalee has a market cap of $109m 

• Company’s share price is $1.90 at 11AM AEST Friday 13 Jan

• One year returns are down -25.78% 

• Year to date performance up 0.80% 

• Average 4 week trading volume of 15,303 shares 

• Ranked 213 of 942 constituents in the Materials sector  

• Company had $5.25m in cash at end of September quarter 

• It spent $437,000 in opex over the same period 

• It spent $2.62m in investing activities over the same period 

Jindalee's three month charts. Shares were up 10% in the second hour of trade on Friday 13 January 2023