Gold Digger: Investors are piling into oversubscribed gold IPOs
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The price of gold will “remain elevated” as governments pour cash into the post-pandemic economic recovery, the world’s biggest gold producer Newmont said this week.
This extended period of joy for gold miners and explorers is encouraging more companies to ‘make hay while the sun shines’ and chase ambitions of listing on the ASX.
Investors are also keen to jump on board.
The merged company has an annual production of around 720,000oz of gold, and 7.7 million ounces of silver from four mines.
Victorian gold explorer North Stawell Minerals (ASX:NSM) closed its $20m initial public offering after being inundated with demand and expects to list on the ASX next week.
It ranks as the biggest gold float on the ASX since Dacian Gold (ASX:DCN) in 2012, which also raised $20m in its IPO.
Ethiopia-focused Megado Gold — which raised the maximum $6m at 20c per share in a bookbuild that was “multiple times oversubscribed” — is next in line to light up the ASX boards around October 26 under the ticker ‘MEG’.
In early September, OzAurum Resources raised ~$1m in oversubscribed pre-IPO funding to secure 80 per cent of two advanced gold projects in WA.
OzAurum expects to mandate a lead manager for an IPO in the next month.
There’s also gold-focused Siren Gold, Pathfinder Resources, and Miramar Resources still to come.
Meanwhile, gold continues to bounce around the mid-$US1900/oz mark:
The big Aussie miners had a strong week, led by Northern Star (ASX:NST) +12 per cent, Evolution Mining (ASX:EVN) +9 per cent, Ramelius Resources (ASX:RMS) +11 per cent, and Perseus Mining (ASX:PRU) +14 per cent.
Here’s how 178 ASX-listed gold stocks performed for the period September 14 – September 18 [intraday]:
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BUY, BUY, BUY!
A well timed acquisition can be a good way to reignite that share price.
Coal/renewable energy minnow Pacific American (ASX:PAK) is dipping a toe into WA gold exploration, while former cobalt high flyer Celsius Resources (ASX:CLA) is buying a suite of copper-gold projects in the Philippines.
Celsius’ acquisition includes an enormous, high-grade copper-gold porphyry deposit at the Maalinao-Caigutan-Biyog (MCB) project.
Porphyry deposits are multigenerational monsters, responsible for ~60 per cent of the world’s copper, most of its molybdenum, and significant amounts of gold and silver.
Highlight results from historical drilling include a 384m-long intersection grading 1.25 per cent copper and 0.46 grams per tonne (g/t) gold.
Celsius is going to move quickly, non-exec director Bill Oliver says.
“Currently, Anleck and Celsius are progressing a maiden JORC resource estimate for Makilala which is expected to be delivered once COVID quarantine restrictions ease, which will be followed by the commissioning of a scoping study,” he says.
WHAT’S THE DRILL?
A drilling program is kicking off at Alicanto’s (ASX:AQI) Greater Falun copper-gold project, located in Sweden’s mineral-rich Bergslagen district.
This project neighbours a bunch of big operations including the 28-million-tonne Falun deposit, mined over ~1,000 years at some pretty phenomenal grades until the 1990s.
This 4,000m diamond drilling program will be the first thorough, modern exploration campaign ever undertaken at the project, Alicanto says.
In response to a share price query from the ASX, Krakatoa said the first batch of assay results were expected to be received in one-to-two weeks “following which the company will complete its internal review processes before releasing to ASX”.
The explorer also included a sneaky spruik.
“At the time of writing, the final proposed hole QRD005 had commenced,” it says.
“This highly anticipated drill hole has been planned to test below the outstanding chip result of 1,535g/t gold just south of Dead Horse Reef where past explorers report numerous significant gold grades from chip and mullock sampling, including 135g/t, 26g/t, 14.6g/t and 12.55g/t.”