InterGroup Mining Limited has shared the various promising paths available for the company to progress towards a listing. Your steadfast support has been instrumental in bringing us to this decisive moment, and we deeply appreciate your patience and commitment. We would also welcome your feedback.
Included in this update are a range of matters that I’m sure will interest you, however, let’s look at our listing options first. These include:
1. AIM Shell Company Listing: Over the past two months, we have made significant progress, completing 85% of the work necessary to take control of an AIM shell company. This option positions us to be listed on AIM within a couple of months, providing shareholders the opportunity to sell their shares if desired. This listing would be the first step towards applying for a full LSE listing early next year, as much of the groundwork for the AIM listing has already been completed. While the cost includes 15% of the company going to the shell’s shareholders, the speed and efficiency of this process are notable advantages. The downside is the inevitable dilution.
2. Direct AIM Listing: We are in advanced discussions regarding a significant investment in the company, which has taken longer than anticipated. Should this investment materialise in the next few weeks, we could proceed with an AIM listing as a “compliant listing”, without raising funds at the time of listing. This approach would result in less dilution compared to the shell company route and could be accomplished within 3-4 months.
3. NYSE Listing through SPAC: Another exciting option is listing on the NYSE via a Special Purpose Acquisition Company (SPAC). We have identified several SPACs, each with a minimum of $10 million in cash. We would negotiate a deal to take control, with the SPAC shareholders, receiving shares in the new business, which would then be quoted on the NYSE. This route, which could also be achieved within 3-4 months, is potentially the most advantageous for shareholders, as it would likely yield a higher valuation.
Our intent is to list the company prior to the end of 2024.
Further to the above, an enterprise value report has been received by IGM (June 2024) and we have included extracts from this report in the Addendum to this newsletter. This report states that IGM has procured a A$15M funding round from a prominent Middle Eastern Family Office, although this capital raise has not yet concluded. In the interim, an independent capital raise of $6M is being sought to accelerate current progress on the kaolin, including offtake contracts.
With around 500 shareholders, we understand that many of you prefer a UK listing, and we are keen to hear your thoughts on these options. Your feedback is invaluable as we navigate a decision on this matter.
We extend our heartfelt thanks to our largest shareholders for their unwavering support and belief in our vision. Your contributions have been crucial in reaching this stage, and we look forward to sharing the success of the next steps collectively, for the benefit of all our shareholders.
Thank you for your continued faith and patience as we embark on this exciting journey together.
Enterprise Value
An enterprise valuation report for InterGroup Mining Limited (IGM) was completed in June 2024 and offers a detailed financial analysis to determine the company’s fair market value. The valuation report considers multiple approaches, including the Discounted Cash Flow (DCF) method, comparable company analysis, and precedent transactions. The DCF analysis projects future cash flows and discounts them to present value using a suitable discount rate, factoring in IGM’s risk profile and market conditions. The comparable company analysis benchmarks IGM against similar publicly traded companies, while the precedent transactions method examines recent M&A transactions within the same industry. Each method contributes to a comprehensive valuation, ensuring a robust and balanced assessment.
The valuation report highlights key financial metrics, market trends, and strategic initiatives influencing IGM’s market position and growth potential. It outlines the assumptions underpinning the financial projections, including revenue growth rates, profit margins, capital expenditures, and working capital requirements. The report also addresses potential risks and uncertainties, such as market volatility, regulatory changes, and competitive pressures. By integrating these elements, the valuation provides a nuanced perspective on IGM’s intrinsic value, guiding stakeholders in making informed investment decisions.
An extract from this report is included as an Addendum to this Company Update.
Co-mining Opportunity Advantage
The Co-mining opportunity comes from our principal minerals being gold and kaolin (upgraded for the supply of green concrete), as well as critical minerals and rare earth elements. This provides the potential to supply multiple valuable products, including hydrous kaolin, metakaolin, silica flour, fine silica sand, glass silica, high purity silica, filter sands – in addition to gold, mica, critical minerals & rare earth elements.
Kaolin Project Dynamics
We are fortunate to enjoy strong interest on our kaolin and silica, which can springboard mining commencement as a result of market “demand pull”. At present we have more than 12 potential offtake partners who are awaiting the results of bulk sample analysis.
