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IPO Wrap: Rare earths, gold, lithium and chemicals play to make an ASX debut
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- Malawi-focused Rare earths explorer DY6 Metals due to list on Thursday
- Junior rare earths and lithium explorer Australian Critical Minerals to list
- Chemical, ingredients and raw material distributor Redox to list on July 3
As we come to the end of the Aussie financial year and approach FY24 there are just a few companies brave enough to make an ASX IPO amidst continued market volatility.
On the ASX, there were 87 ASX IPOs in 2022, well down from 191 in 2021, but so far in the first six months of 2023, we’ve seen only 12.
So who is set to for a market listing at the end of June heading into July?
Upcoming IPO listings
Expected listing: June 29
IPO: $7m at $0.20
DY6 Metals is poised to become the next rare earths explorer to list on the ASX and holds the Machinga and Salambidwe REE projects as well as the Ngala PGE-copper-nickel project in Malawi.
DY6’s fundraising efforts were kickstarted by Hong Kong-based Zhensi Group and Zhnung Nam New Material Company, which together contributed $2.5 million with the story also resonating with other investors, ensuring it comfortably raised the $7 million it was seeking at 20 cent/share.
Machinga – the company’s flagship project – is just 40km east-southeast of Lindian Resources’ Kangankunde deposit (2.5Mt at 4.2% total rare earth oxide), with the major Lilongwe-Zomba highway running through.
While the Southern Malawi alkaline province is known best for hosting a range of light and heavy rare earth (HRE) projects, Machinga features a high ratio of heavy rare earths to the total rare earth oxide (TREO) content – with peak values of 39% – along with high ratios of dysprosium oxide with an average of 3.3%.
DY6 said it intends to use proceeds from the IPO to fund an initial ~5,000m reverse circulation and diamond drilling program following up on targets drilled by prior owner Globe Metals and Mining (ASX:GBE) in 2011/2012.
Drilling will also follow up on trenching carried out in 2010 that returned results such as 7m at 1.26% TREO and 33m at 0.71% TREO to see how far mineralisation can be extended along strike.
Expected listing: June 30
IPO: $5m at $0.20
ILT has three gold and base metal projects in Queensland including the Northern Base Metal Project, Rookwood Project and the Southern Gold Project.
The company intends to build a portfolio of operating mines plus development and exploration projects with a fundamentals-driven bias to the raw materials the world needs to realise a clean energy future – with a focus on copper.
Australian Critical Minerals (ASX:ACM)
Expected listing: July 3
IPO:$5m at $0.20
According to its website junior explorer ACM has a multiple mineral-exploration strategy focussed on lithium and REE. The company has six project areas across an impressive 1,861 km2 of prospective tenements in the Tier-1 mining jurisdiction of Western Australia.
These include Cooletha, Shaw, Rankin Dome, Beverley, Kondinin and Kojonup in the Pilbara and Southwest Goldfields Regions of WA – specifically, the South-West and Youanmi Terranes.
ACM said it consider the projects to be prospective for lithium, tantalum, gold, iron ore, rare earth oxides and kaolin.
The company is headed up by geologist and managing director Dean de Largie, ex-Herald Resources boss and non-executive chairman Michael Wright, and non-executive director explorationist Gary Brabham.
ACM intends to use the funds raised from the IPO for exploration costs, loan repayment and working capital.
Expected listing: July 3
IPO:$402m at $2.55
According to its website RDX has become one of the leading chemical, ingredients and raw material distributors in the world and is not a new company.
RDX traces its origins back to 1965 where it was founded by Roland Coneliano, who came out to Australia from Europe.
He used his extensive contacts and personal relationships across Europe to establish a business bridging continents at a time when communication across continents was difficult.
Coneliano retired after 50 years at the helm in 2015 and died in 2017. The company’s CEO and managing director is now his grandson Raimond Coneliano, who recently replaced his son Robert who retired.
Roland Coneliano’s son Renato is executive director and marketing director, while his other son, Richard, is general manager.
Expected Listing: July 5
IPO:$5m at $0.20
Queensland gold, antimony and copper explorer GDM has several projects underway in Australia’s Sunshine State within renowned mineral provinces.
GDM’s three key gold and antimony projects have been subject to recent or significant drilling programs and have numerous ore-grade intercepts.
The company’s flagship Coonambula Project hosts numerous historical workings along multiple zones, some untested over a ~4 km strike length.
GDM’s Devils Mountain Project is close to the historic Gympie and Kilkivan mining centres and hosts numerous historic workings over a 1.4 km strike.
GDM’s Yellow Jack Project, near Charters Towers, has an historic oxide-gold resource at surface within 20km of an existing processing plant.
The company’s fourth Project, Cape, is in the centre of Cape York Peninsula and has identified copper, REE, and gold targets.
