ADR Program FAQs

Ioneer’s listed ADRs are traded on Nasdaq with ticker IONR.

American Depositary Receipts (ADRs) are negotiable U.S. securities issued by a U.S. bank, referred to as a “depositary bank,” that typically represent a non-U.S. company’s equity. ADRs trade freely in global markets and facilitate cross-border trading.

ADRs allow non-U.S. companies to make their shares available outside their home markets and allow investors in the U.S. and elsewhere to easily invest in companies on a more global basis.

An ADR program often uses a ratio to reflect a USD price which will differ to its primary home market. One reason being, it ensures the ADR price is relevant to the wider market, including institutional shareholders who have investment mandate considerations.

An ADR ratio provides the number of underlying shares represented by one ADR. One (1) Ioneer ADR represents forty (40) ordinary INR shares on the Australian Securities Exchange (ASX). The two securities trade very close to parity once the ADR ratio and foreign exchange aspects are accounted for.

Investors in the United States can benefit from holding ADRs rather than ordinary shares in the issuer’s home market, because ADRs trade, clear and settle according to United States market conventions.

ADRs allow U.S. investors to buy non-U.S. securities and hold these in their U.S. brokerage accounts. ADRs also allow access to price and trading information, U.S. dollar dividend payments and corporate action notifications.

Ioneer ADRs can be purchased through a typical broker, just as you would to buy other U.S. securities. You cannot buy ADRs directly from Ioneer.

BNY Mellon is the depositary bank and plays a key role in the process of issuance and cancellation of ADRs.

An overview of the INR ADR program can be found here.

For more information on BNY Mellon and ADRs, please visit:
www.adrbnymellon.com
www.adrbnymellon.com/resources/dr-basics

The Bank of New York Mellon may charge an annual Depositary Service Fee of up to U.S.$0.05 per ADR. This is typically collected from the broker or other intermediary that holds the ADRs on your behalf. Your broker may pass this fee on to you directly or it may be part of the annual fee that you pay to maintain your brokerage account.

Section 5.9 of the ADR Deposit Agreement discloses all applicable fees. A copy can be found by visiting here.

There will be an issuance fee of up to US$5.00 per 100 ADRs (or portion thereof) charged by The Bank of New York Mellon for the issuance of the ADRs. The exchange of your dematerialised ordinary shares will need to be managed by your broker as ordinary shares need to be transferred electronically to The Bank of New York Mellon prior to the issuance of ADRs. Your selected broker may also levy an administrative charge for managing the exchange process.

Until July 29 2022, BNY Mellon will waive the ADR issuance fee. Your brokers back office will be able to arrange for this when settling an ADR issuance on your behalf.

At the present time, Ioneer’s over-the-counter foreign ordinary shares will continue to trade on OTC. There is no requirement to convert your F shares to ADRs. Each share will continue to represent one (1) ASX-listed ordinary share of Ioneer.

Converting ASX-listed ordinary shares into ADRs can be done through your broker.

To convert your ordinary shares into ADRs:

1. You need to transfer your ordinary INR shares to BNY Mellon’s local custodian, HSBC Bank Australia Limited (SWIFT BIC: HKBAAU2SSYD, CHESS PID: 20057, Safekeeping Account: 011-552130-068). This process is usually completed by your broker via an electronic CHESS transfer, or broker transfer form. Your broker should be able to assist with this.
2. HSBC also require the U.S. ADR delivery instructions to accompany any deposit of ordinary shares. This information is usually completed by your broker, and should be sent via email to adrconversions.hbau@hsbc.com.au and should include details of the institution where the ADRs will be delivered to in the U.S. market (i.e., institution / broker name & DTC acct. info).
3. Once BNY Mellon receives confirmation from HSBC that your underlying ordinary shares have been deposited, new ADRs are issued and delivered to your nominated U.S. broker, in accordance with the ADR programs “Deposit Agreement”.

Your brokers back office will be familiar with the ordinary share to ADR conversion process. Should your broker have a settlement enquiry, they can contact drsettlements@bnymellon.com.

To convert your Ioneer F shares to ADRs, please contact your broker. They should be familiar with the process and would need to arrange for the delivery of the underlying ordinary shares which represent your GSCCF to HSBC in Australia as outlined in the response to “How do I convert my ASX-listed ordinary shares or OTC-listed foreign ordinary shares into ADRs?” (above).

A registered holder is one whose name appears on the books of the depositary. The registered holder is considered the owner of the record. A beneficial holder is one whose holdings are registered in a name other than his or her own, such as the name of the broker, bank, or nominee.

For registered owners, ownership is registered by the depositary bank and is evidenced by an account statement provided by the depositary.

Registered owners can hold physical ADR certificates. Please contact BNY Mellon for more information.

BNY Mellon Shareowner Services
P. O. Box 505000
Louisville, KY 40233-5000

U.S. Toll Free Telephone: 1-888-BNY-ADRS (1-888-269-2377)
Telephone for International Callers: 1-201-680-6825

Website: www.mybnymdr.com
E-Mail: shrrelations@cpushareownerservices.com