Will metals and mining IPOs remain to be an intelligent investment this year? In 2021, the sector reached its highest in over two decades and investors hope that the momentum continues. Whilst there are inflation concerns, experts believe that metals and mining IPOs are sound investments in the long run with electric and renewable vehicles infiltrating a broader market. In fact, ASX mining shares were market leaders in terms of gain from January to April 2022 and advanced 14.7% last March.
Remember in the 1990s when investing in an IPO almost guaranteed positive returns? Times have changed and many public companies now experience high first-day gains but ended up disastrously in the succeeding years. Avoid that pain of losing by simply understanding your prospective IPO company.
Below are the metals and mining shares to watch out for this year.
Andean Mining (ASX:ADM)
Andean Mining is an Australian mineral exploration company with operations in Colombia. The firm believes that the country has a great opportunity for expansion due to its low levels of explorations whilst having the best mineral belts.
They have a strong management team and an experienced board with years of experience in exploration in foreign jurisdictions. The company plans to expand the business through acquisition and organic growth.
Andean Mining is proud of their flagship El Dovio project which hosts high-grade polymetallic mineralisation with grades of 17% copper and 104g/t gold. The prospectus seeks to raise between $6m and $7m to fund the project’s exploration and drilling. Andean Mining exposes its investors to high-grade gold and copper plus an entry to South America’s emerging top mining jurisdiction. The company was scheduled to go public last 14 February 2022 and has yet to release a new date.
Bellavista is an exploration company that targets large and high-grade base metal and battery deposits in Western Australia where they have secured a strong land position. The team, which is supported by well-credentialed shareholders, commits to provide capital-efficient exploration and value-accretive corporate transactions.
They have multiple projects to date, including the Brumby Deposit, Vernon Base Metals, Vernon Nickel-PGE and Gorge Creek. These are highly prospective for uranium, silver, zinc, PGE and copper deposits, making it an excellent investment as copper made a record high in 2021 which boosted copper companies this year. The price rallied to above $10,700 per tonne in the second quarter of 2021 due to high demand and eased travel restrictions. The company is set to trade publicly on 12 May 2022.
Aurora Energy Metals (ASX:1AE)
Aurora Energy Metals is an Australian company with operations in Oregon, USA. The company operates in first-world mining jurisdiction, specifically in a historical mining district with access roads.
The company hosts defined uranium resources and is prospective for lithium, both of which are in hot demand. In fact, the West has a strong demand for uranium to reduce its dependency on Russian exports. The minerals also play a critical part in a clean energy transition where it attempts to limit the use of fossil fuels.
Aurora Energy Metals reportedly has 36.7 million pounds of uranium and plans to expand through exploration. The company is poised for a strong debut as they already reported to raise $8m before their expected date to trade publicly in the ASX stock market on 16 May 2022.