The Offer

Company Overview

The Company is a young mineral exploration and development firm that focuses on Malawi's finds of heavy rare earths and important metals. The Company's main goal upon Admission will be to boost shareholder wealth through the exploitation, development, and acquisition of mineral resource properties. The Projects outlined in this Prospectus will be the focus of exploration and assessment.

Key Highlights

Primary Offering: A minimum of 25,000,000 shares and a maximum of 35,000,000 shares will be issued as part of the capital raising offer (the "Offer Price") at a price of AUD 0.20 per share to raise a minimum of AUD 5,000,000 and a maximum of AUD 7,000,000 (before costs). The offer of 3,000,000 Options to be granted to the Lead Manager (or its nominees) as partial payment for the lead manager and bookrunner services rendered to the Company is also included in this prospectus.

Use of proceeds:

The following tables indicate how money will be used in the 24 months following admission:

Dividend policy: The Company does not anticipate paying dividends any time soon because its main priority is to expand its current business. The Directors will ultimately decide whether to pay dividends on behalf of the Company, and their decision will be based on a variety of factors, including the availability of distributable earnings, the company's operating performance and financial condition, anticipated future capital needs, general business conditions, and other relevant factors. Regarding the payment of dividends or the possibility that such payouts may attach franking credits, no guarantees are made.

Financial Highlights (Expressed in AUD):

• Pre-revenue company: The Company does not currently have any operational revenue and is not expected to until the Projects are successfully built, and production starts.
• Current profitability and liquidity condition: The Consolidated Entity reported negative cash flows from operating activities of AUD 14,710 and total comprehensive loss attributable to members of the entity of AUD 44,983 for the year ending December 31, 2023. The Company believes that its current cash on hand and the net proceeds from the Offers should be sufficient to cover its short-term business growth efforts, exploration program, and other company goals as outlined in this Prospectus.
• Cost of Capital Raising: The estimated costs of the capital raising offer are AUD 869,246 (including the AUD 300,000 Lead Manager Fee) assuming the Minimum Subscription is raised, of which AUD 631,035 is offset against contributed equity and AUD 238,211 is accounted for in accumulated losses, or AUD 995,673 (including the AUD 420,000 Lead Manager Fee) assuming the Maximum Subscription is raised, of which AUD 751,035 is acknowledged in accumulated losses.

Key Management Highlights

Risk Associated (High)

Investment in the IPO of “DY6” is exposed to a variety of risks such as:

• Limited Operational history: Since the Company was only recently formed on 3 November 2022, there isn't much operational or financial data on which to base an assessment of its operations and prospects. The prospects of the Company must be taken into account in light of the dangers, costs, and challenges typically experienced by businesses in their early phases of growth, particularly in the very risky and unpredictable mineral exploration industry.
• Operations in Malawi: The Projects of the Company are situated in Malawi. There is no assurance that Malawi's political atmosphere will remain stable and advantageous for foreign investments in the future, and it is possible that the country's governing, regulatory, and legal systems may alter.
• Grant and renewal of tenements: The upkeep (including renewal) of the tenements in which the company has or acquires a stake is necessary for the company's exploratory efforts. The upkeep of the Company's tenements depends on a number of factors, including the Company's ability to satisfy the license conditions imposed by relevant authorities, including minimum annual expenditure requirements, which in turn depends on the Company having enough funding to satisfy those expenditure requirements.
• Price of underlying commodities: Commodity prices vary and are influenced by a wide range of external variables that are outside the Company's control. These variables include the global demand for base metals, producers' forward selling, and levels of production costs in the principal metal-producing countries. Furthermore, macroeconomic factors like expectations for inflation, interest rates, global and regional demand, and supply for the commodity, as well as general global economic conditions, also have an impact on commodity prices. The Company's exploration, development, and production activities, as well as its capacity to finance such efforts, may be negatively impacted by these circumstances.

Conclusion

The Firm is a mining exploration company; however, it currently generates no income. Therefore, the Company won't be able to make money unless it can show that minerals are found at the Projects, that they can be mined and sold, if any, and that they are commercially recoverable. The Corporation may make money by selling its property and/or by obtaining royalties from the Projects. As a result, it is important to understand that the Company's ability to profit from its operations depends on several uncertain future events as well as the high volatility of the prices of the underlying commodities.

Hence, given the financial performance of the company for the period ending December 31, 2022, incurred net losses, and associated risks “DY6 Metals Ltd (DY6)” IPO seems “Neutral" at the IPO price.

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