The junior nickel explorer’s shares are set to float on the ASX at 12:30pm AEDT Monday. Under its prospectus, Nimy’s shares were going for 20 cents apiece.
Let’s take a look at the company that will soon be the newest nickel-focused ASX participant.
What does Nimy Resources do?
Nimy Resources is a nickel explorer with 100% ownership of the greenfield exploration project Mons Nickel.
The Mons Nickel Project is in Western Australia’s Yilgarn Craton. According to the company, the Yilgarn Craton makes up part of a tier-one mining jurisdiction with substantial nickel and gold resources.
The project has had minimal nickel exploration and Nimy Resources hopes modern exploration techniques will expose its potential. So far, Nimy has put together a database including aerial geophysical surveys, soil and rock chip samples, ground magnetics, and drilling results from previous exploration.
Additionally, the company completed the project’s maiden drill campaign in October 2020. Through the campaign, Nimy drilled 20 reverse circulation holes to a depth of around 200 metres. Of those, 16 intersected substantive widths of nickel mineralisation with mineralisation, in many instances, ongoing at end of hole.
Nimy Resources to hit the ASX
Nimy Resources raised around $6.4 million through its initial public offering (IPO).
That was within its expected range of between $6 million and $7.5 million.
To do so, it sold around 32 million Nimy shares for 20 cents apiece.
At the time of listing, the company will have around 114 million shares outstanding. Thus, the company has an expected market capitalisation of approximately $22.8 million.
Over the 2021 financial year, the company brought in $90,517 in revenue and recorded a pre-tax loss of $677,971. It ended the financial year with $972,664 of cash in the bank and $631,762 of total equity.
Nimy Resources hasn’t provided the market with earnings guidance going forward. It states that, due to the current status of its project and the nature of mineral exploration and development, its directors don’t believe it’s appropriate to forecast its future earnings.
It likely goes without saying, all eyes will be on Nimy Resources and its share price when it floats on the ASX this afternoon.