16 ASX mining small caps are dual-listed in London. And analysts are noticing
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This week Stockhead has reported a couple of mining companies are seeking to list in London.
Pursuit Minerals (ASX: PUR) has undertaken a roadshow in London and has attributed investor interest in London to its desire.
Po Valley Energy (ASX: PVE) wants to list in the Old Dart too. They called the London market, “more knowledgeable and focused on European gas and energy”.
The latter company want to list on the AIM (Alternative Investment Market). This exchange has less onerous regulations than the London Exchange and is home to smaller high-risk stocks.
But their pushes are not unprecedented. There are 16 ASX small cap mining stocks with dual listings in Australia and London. Ironically they’re performing better in London than in Australia. On average, up 6 per cent in London but down 7 per cent in Australia.
It can be difficult to stand out in larger markets. But analysts have been taking notice of some of them in recent weeks. Salt Lake Potash (ASX: SO4) raised $20 million this week thanks to Swiss private bank Lombard Odier and a consortium of private investors.
London broker, Cenkos released a report on Wednesday and was bullish about the mine’s potential over its predicted life span. It predicted the stock in London could rise from its then price of 29 pence to 52 pence.
Like Taylor Collison’s analysis a few weeks ago, Cenkos conceded potash prices would be a key factor, although it did not concede a particularly low price could “sink” the stock (in that its value would be below zero).
Last month, Cenkos also rated 88 Energy (ASX: 88E) as a buy predicting it to nearly quadruple from 1.6 cents to 6 cents. Eight Capital did likewise with Berkeley Energy (ASX: BKY) setting a target price of $1.20 when it is currently 29 cents.
Base Resources (ASX: BSE) has been rated as buys by Numis Securities, Peel Hunt and Berenberg with target prices of 56 cents, 41 cents and 48 cents respectively. But two of its directors did not take the advice.
Easily the most ringing endorsement was GMP FirstEnergy analyst Stephame Foucaud’s rating of Global Petroleum (ASX: GBP), setting a target price of 8 cents in May. Two years ago he was the awarded by Thomson Reuters as the UK & Ireland’s ‘Top Stock Picker for Energy’.
But for some companies, having connections in London is enough to attract attention, even if you’re not listed there. Gold miner Calidus Resources (ASX: CAI) was spun out from a London listed firm and is only listed in Australia.
On Wednesday, Brandon Hill Capital released a flash note. It did not set a target price but expected “plenty of news flow” over the next two months.