Stavely Minerals fell below its 20 cent April 2014 IPO price today after peaking at 70 cents in July
John Robertson
PortfolioDirect
Stavely Minerals fell below its 20 cent April 2014 IPO price today after peaking at 70 cents in July. The process of defining a prospective copper-gold porphyry system in western Victoria was almost certainly going to take longer than the market value of the company had implied. The company is priced more realistically now but, with only $1.1 million left to spend, it will have to raise more funds (or sell stakes in its properties) to maintain the momentum of activity. As its understanding of its mineral systems is improving, the chance of eventual success has risen as its market price has declined. The opportunity to buy below the IPO price to gain a unique geographic exposure warrants consideration. Alternatively, a near term share placement may bring a still lower entry price. Or, take an average of the two.
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John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business strategist and investment market professional for over 30 years after starting his career as a Commonwealth Treasury economist in Canberra. Since being Australia's top-rated commodities analyst and chief economist at one of Australia' leading stockbroking firms, he has advised companies across the mining, consumer products, IT and biotech sectors on their equity market relations. He leads the firm's investment evaluation and security structuring activities on behalf of the Australian Small Scale Offerings Board (ASSOB), the world's first equity 'crowdfunding' investment platform. John Robertson discusses the interaction of mining and investment markets in his weekly 'From the Capital' column in Mining Journal.
John Robertson
PortfolioDirect
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
Expertise
No areas of expertise
John Robertson
PortfolioDirect
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
Expertise
No areas of expertise
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