ANCHOR RESOURCES placed out 28.8m shares at $0.25 each. The market cap is ~$69.9m based on the IPO price.
I was pretty surprised to read about the Company's listing in March. Even the more promising Deskera postponed its listing due to poor market sentiment.
The share price tumbled from 25 cents at launch to 14.3 cents yesterday, a whopping drop of 42.8%!
I pity the investors who took the shares (if they are not the friends and family) of Anchor Resources.
Gold price has seen a short rebound in 2016 when global market sentiment took a whammy. I am not sure if the gold price has bottomed out but i am not a mining company fan.
One of the closest competitors is CNMC Goldmine which I blogged about back in 2011. The post is here.
Since its IPO, CNMC Goldmine has turned around and has made a profit from 2012 onwards. It made a profit of S$14.6m in 2015 and as of yesterday, it was trading at a PE of 5.86x and a price to book of around 1.87x.
Similar to CNMC when it first came to market, Anchor Resources is still loss making and the losses have ballooned from RM6.8m for FY2014 to a loss of around RM12.6m for 1H 2015.
|Anchor Resources||CNMC Goldmine|
|Share price||9.9 c||21.5 c|
|Market cap||S$27.7 m||S$87.6 m|
|Shares outstanding||279.7 m||407.3 m|
I would likely have given it a zero chilli rating since readers who have an interest in gold mining companies are better off buying the share of CNMC Goldmine. Happy gold mining.
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