Listed on Catalist on 18 March this year, Anchor Resources has dived 60% -- from 25 cents to 9.9 cents currently. We republish, with permission, what Mr IPO said (http://singapore-ipos.blogspot.sg/about the stock a week after its listing. 

ANCHOR RESOURCES placed out 28.8m shares at $0.25 each. The market cap is ~$69.9m based on the IPO price.

The Company is engaged in the business of exploration, mining and production of gold for sale in Malaysia. It is headquartered in Malaysia with concession rights to the Lubuk Mandi Mine and the Bukit Panji Property in Terengganu.


My Views

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.

mine11.15@ CNMC's gold mine in Kelantan, Malaysia.
Photo: Company
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
PE (ttm) -- 6.1
Market cap S$27.7 m S$87.6 m
Shares outstanding 279.7 m 407.3 m
Dividend yield
(ttm)
-- 2.51%
Source: Bloomberg
The NAV per share is 5.82 cents versus the IPO price of 25 cents. That translates into a price to book of 4.3x!  

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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Comments  

-1 #2 Chan k k 2016-04-08 12:56
Can also analysing on Jumbo and Soo Kee ?
Tks
#1 Chan k k 2016-04-08 12:54
Dear Sir;
Please don't pour cold water into this new IPO, you are lucky broker didn't ask you to take up but give a thinking to those who has taken up and loss heavily....You sure by promoting CNMC investor will make back their money ?....Must well use the residuce money to buy Innovalue or Baker Tech hope will likely to recover some loss money...
Rdgs;
Chan
 

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