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  • American Pacific Borates (ABR) is edging closer to a secondary listing on the NASDAQ as it progresses work on its flagship Fort Cady mine in California
  • The company said feedback is positive from talks from NASDAQ representatives and potential future investors for the future listing
  • Meanwhile, the company is considering engineering initiatives at Fort Cady to bring earnings from the project forward
  • This is because larger earnings in early years could help usher the U.S.-listing along because U.S. peer valuations are driven by earnings multiples
  • ABR says the NASDAQ listing is one of its top priorities
  • Shareholders seem supportive of the move, with shares up 12 per cent this afternoon to an all-time high at $1.28 each

American Pacific Borates (ABR) is edging closer to a secondary listing on the NASDAQ as it progresses work on its flagship Fort Cady mine in California.

The borate miner said it has held positive talks with NASDAQ representatives and U.S. investment banking partners to help speed up the dual-listing process.

According to ABR, feedback is positive from its U.S. investors outreach program for a NASDAQ listing via American Depository Receipt (ADR). The company said fund managers and other potential investors agree that a U.S. listing would make it easier for American investors to own shares in American Pacific Borates.

Given ABR’s flagship project, along with most of its management team, is based in the States, the company said a NASDAQ listing is one of its key priorities.

Fort Cady work

Meanwhile, ABR said it is busy contemplating some engineering initiatives to bring earnings from the Fort Cady project forward.

As it stands, ABR expects to pull in around $685 million in earnings before interest, tax, depreciation, and amortisation (EBITDA) for the first full year of production at Fort Cady. First production is slated for the third quarter of 2021.

However, the company said today it could bring EBITDA forward by increasing sulphate of potash (SOP) production at the project and focussing on producing granular SOP with borate speciality fertiliser on-site.

ABR said larger EBITDA in earlier years could help usher the Nasdaq listing along because U.S. peer valuations are driven by EBITDA multiples.

Further, based on some of the trials of the SOP with borate fertiliser conducted by ABR, the company said there could be a large market for the product in the U.S.

Nevertheless, the Fort Cady re-engineering will not impact the current production target date for the third quarter of 2021.

Shareholders seem supportive of the upcoming U.S. listing, with ABR shares up 12.33 per cent at 1:41 pm to trade at an all-time high at $1.28. The company has a $397.99 million market cap.

ABR by the numbers
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