good environments for kor spin offs and ipos

Dear KOR and UAU share holders

My Study on AFR (Australian Financial Review) IPO survey (page 63 of the Weekend AFR, 1-5 April 2010), ASX recent floats, IPO company prospectuses, ASX announcements, etc give many interesting observations:

[1] 14 companies raised a combined $433 millions. http://www.asx.com.au/asx/research/recentFloats.do

[2] The largest IPO is Miclyn Express Offshore (ASX code: MIO), marine service group, raising A$300 with IPO price at A$1.90. (Book build from A$1.85 to A$2.35). Macquarie Group/MQG still own 34% of MIO.

[3] Average first day gains for IPOs last quarter (1 Jan 2010 to 31 March 2010) were 5%, and nine of 14 IPOs rose on debut. http://www.asx.com.au/asx/research/recentFloats.do

[4] The biotech researcher Cbio (ASX code CBZ & CBZO) plunged 61% of debut and has lost more since then and it has traded at 33c today (6/4/2010) and worst IPO in last quarter.

[5] Further huge share price gain since debuts happen only to mining/resources companies (mainly due to successful drilling, project acquisition, PR/marketing and after market support by institutions or smart loyal investors).

Stags in those companies listed below must be feeling a bit sad. Well, at least they have profits as a reward and meet their trading objective and hopefully they will not become sour grape/angry/hater towards those companies.

[a] Hunnu (ASX code HUN, exploring coal in Mongolia) has risen to 50c today (issue price 20c, first day close 33.5c)

[b] Southern Hemisphere mining (ASX code SUH, developing Manganese, copper and gold in Chile) has risen to 46.5c today (issue price 25c, fist day close 38c)

[c] Doray Mining (ASX code DRM, gold explorer, with promising exploration result results from Andy Well project in Northern Murchison region of Western Australia). Issue price is 20c and first day close 19.5c and today price has reached 96c high).


[6] None of the gold IPOs and uranium IPOs in the last quarter has Gold Resources and Uranium Resources when they are floated/listed.

KOR intend to float the 2 gold IPOs with 1 million ounce for Bobrikovo Gold IPO
( http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01050827 )

and the 307,000 ounces for Melrose Gold IPO (the project is currently is being upgraded for its 4 gold deposits. (http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01045498)


UAU (Uranium Australian) IPO with:

[a] 2.2 million lbs JORC compliant uranium resources (Maitland Project in Western Australia); Directly adjacent to Mega Uraniums lake Maitland uranium deposit with 32 million lbs U3O8. It is targeting to have JORC resource of 22 millions lb within 2 years.

[b].Batchelor & Green Alligator Project directly adjacent to Rum jungle uranium mine (largest uranium deposit and oldest uranium producing region in Australia), Northern Territory, Australia); directly adjacent to compass resources with 14.5 million lbs U3O8

[c] It has the 19,221 square km of exploration potential in Western Australia.

For further details, refer to www.uraniumaustralia.com.au and past KOR ASX quarterly reports.



Looking forward for this Quarter and next quarter.

* Barring GFC or PIGS / UK /US debt issue
* Subject to the All Ords index (XAO) /ASX 200 (XJO) stay above 4600,
Dow stay above 9800; and
Gold price stay above (US$950/oz);
Good underwriter and /lead manager chosen;
And good supports for institution.

In my humble opinion, the two gold IPOs (Bobrikovo and Melrose) and UAU should be able to be floated successfully.


As always, DYOR and consider individual investmnent and trading aim, time frame, risk profile, etc.