ioneer Ltd (NASDAQ:IONR) Embarks on Strategic Partnering Process for Rhyolite Ridge Project.

ioneer Ltd (NASDAQ:IONR) has formally begun a strategic partnering process to identify an equity partner to accelerate development of its Rhyolite Ridge Project. The process is expected to take at least 4 months and follows recent work including an ore reserve upgrade and updated project economics. The miner's stock has a consensus price target of $5.68.

ioneer Ltd (NASDAQ: IONR) has formally initiated a strategic partnering process to identify an equity partner for its Rhyolite Ridge lithium-boron mine project in Nevada. The process, expected to take at least four months, follows recent advancements, including an ore reserve upgrade and updated project economics. The miner's stock currently has a consensus price target of $5.68.

The announcement comes after Sibanye-Stillwater (JSE: SSW)(NYSE: SBSW) withdrew from the project earlier this year, citing a "weak pricing environment." Ioneer, the Australian mine developer, is now seeking a "strong equity partner" to accelerate the development of Rhyolite Ridge and advance it into production [1].

The Rhyolite Ridge project, located approximately 362 km north of Las Vegas, is unique in the global lithium and boron sectors due to its capacity to produce both minerals on-site, providing a dual revenue stream of 75% lithium and 25% boron. The project is shovel-ready with a Class 2 capital cost estimate and 70% engineering completion, and it has all major permits in place [1].

In April, Ioneer's managing director, Bernard Rowe, expressed confidence that an equity partner would be secured in the near term, with the company aiming to sell 40% of the project to one or two investors. The project's after-tax net present value has been lifted to $1.5 billion from $1.26 billion, with the mine life extended to 95 years compared to 26 years previously. However, costs have also risen to $1.67 billion, more than double the $800 million estimated previously [1].

Goldman Sachs will assist Ioneer in the partner search process, which is expected to take four months. The miner is looking for a higher valuation than before, reflecting the project's increased value and costs [1].

Meanwhile, a separate announcement from Diversified Energy Company PLC and global investment firm Carlyle (Nasdaq: CG) highlights a strategic partnership to invest up to $2 billion in U.S.-based oil and gas assets. This collaboration aims to strengthen Diversified Energy's position as a leading operator in the sector [3].

References:
[1] https://www.mining.com/ioneer-begins-partner-search-process-for-rhyolite-ridge/
[3] https://usaherald.com/diversified-energy-and-carlyle-partner-to-invest-up-to-2-billion-in-u-s-energy-assets/