IPO Watch: Gold explorer Yandal next up to hit the ASX, but it may be a slow start
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West Australian gold explorer Yandal Resources is locked in to make its ASX debut today.
The prospects of doing well are not looking good though, with two of three companies that listed this week sinking below their IPO price.
The gold juniors have also taken a bit of a market battering in 2018.
In the past 6 months, more than 82 per cent of small cap gold stocks have lost ground, with only 16 per cent making gains.
Yandal has been admitted to the ASX following the successful completion of a $5m IPO at 20c a share that closed oversubscribed.
The company is on the hunt for new “Tier 1” gold discoveries in the Yandal Greenstone Belt near Kalgoorlie in Western Australia.
The last time major exploration programs were run on Yandal’s tenements the gold price languished around $US500 an ounce; it is now more than double that at $US1244 ($1720) an ounce.
Surrounded by some large gold mines — including the 10 million-ounce Jundee and 2.7 million-ounce Darlot operations — Yandal says its projects are prospective for large, Tier 1 deposits.
But it is also looking to make cash quickly by developing smaller gold deposits and trucking ore to third party processing plants, which reduces start-up costs significantly.
A tough start
Foetal listening device maker HeraMED (ASX:HMD) made its debut on Wednesday and closed its first day down 10 per cent at 18c, with 4.4 million shares changing hands.
On Thursday the Israeli company edged back up to 19c.
Dutch company Tymlez (ASX:TYM), meanwhile, lit up the boards on Thursday, immediately slumping to a low of 15c — a nearly 32 per cent drop on its IPO price.
Tymlez offers a platform that allows companies to build and integrate blockchain-based technologies into existing IT environments.
Blockchain is best known as the basis of cryptocurrency transactions but it’s increasingly used in other ways such as verifying supply chain data, payments and digital contracts.
The only one to escape the first day blues was Brain scanner EMvision Medical Devices (ASX:EMV).
EMvision also started trading on Thursday and was off to a solid start, gaining 16 per cent to hit an intra-day high of 29c not long after ringing the bell.
The company is developing medical imaging technology that utilises electromagnetic microwave energy to create images of the human brain and other organs.