Far East Capital Newsletter
Gold 50 - a gold exploration IPO in Arizona and Nevada
29 May 2021

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Gold 50 - a gold exploration IPO in Arizona and Nevada

Fear was in recess over the last few days in a mildly positive week with no great disruption to cause concern. The gold price pushed through the US$1,900/oz level without any great fanfare, but we haven’t seen a big swing towards the junior gold sector yet. There are still plenty of capital raisings and IPOs in the pipeline, so maybe that is causing a fractionation of investor monies. Maybe it has to do with the seasonal slowdown we usually see as the end of the financial year approaches.

In many cases the IPOs are just another company about which little can be said, other than the observation that they are taking advantage of the investor enthusiasm for new stories. The trouble is that many of these stories are not really new. The company may be new, and the directors may be part of the next generation coming through, but there is usually nothing new about exploration ground that has passed from one cycle to the next. The dogs may be different but it is the same leg action. Support in the aftermarket will depend on many factors beyond the actual merit of the properties.

With the preceding comments in mind, we have been assessing the merits of Gold 50, an up-coming IPO that is seeking to raise $10m. The draft prospectus has been lodged and the company is awaiting approval to go live.
 

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