Surely the awoken will lap this up..
50 cents per kg is a sick though, right?
AFR - Street talk
Natural hydrogen hits the ASX: Morgans pumps up Gold Hydrogen IPOOct 25, 2022 – 4.48pmFloats may be off at the big end of town, but the canny mid-tier brokers are quietly trying to get a few deals away before the end of the year.
The latest is out of stockbroker Morgans, which is building a book of cornerstone backers for South Australian natural hydrogen play Gold Hydrogen Ltd.
Gold Hydrogen’s interested in the Yorke Peninsula and Kangaroo Island, in South Australia.
Gold Hydrogen has a petroleum exploration licence, covering nearly 8000 square kilometres on the Yorke Peninsula and Kangaroo Island in South Australia. It’s in natural hydrogen, which is a new thing for listed equities investors, and something that may or may not become part of Australia’s energy mix in the coming decade.
The company’s hoping to confirm historic occurrence of natural hydrogen of up to 89 per cent purity at its flagship Ramsay Project, according to the pitch seen by Street Talk, and is applying for seven more tenements in SA covering another 67,512 square kilometres.
It is chaired by former Foreign Affairs minister Alexander Downer, a South Australian - in another first for listed equities investors.
“This is the largest tenure position over naturally occurring hydrogen prospective resources in Australia,” the pitch said.
While hydrogen’s new ground for Australia’s energy market, the company’s taking the age-old Aussie resources explorer’s path to funding itself into production: an IPO and reliance on equity capital markets. It is seeking to raise $25 million at 50¢ a share, for a one-third stake in Gold Hydrogen Ltd.
Fund managers and Morgans network brokers have started digging into Gold Hydrogen’s claims including that it will be able to produce hydrogen for 50¢ a kilogram (which is 10 to 20-times cheaper than natural gas, coal and the like), and would be 100 per cent carbon neutral. Morgans is trying to get investors up to speed on the natural hydrogen industry, as well as the IPO candidate.
Former foreign minister Alexander Downer is overseeing South Australia’s Gold Hydrogen as chairman. Getty
Gold Hydrogen will front potential investors in Brisbane - Morgans’ heartland - on Thursday, and has been doing calls with funds in Melbourne and Sydney this week.
The group has told potential cornerstone backers that more than 80 per cent of IPO proceed would be used on exploration and development in the coming two years. Underwriting and IPO costs were said to be $1.64 million only.
Its stage one drilling program was pegged to commence in the third quarter of next year on the Yorke Peninsula.
While it’s a relatively small deal, there’ll be heightened interest given changes in the energy sector and investors’ search for the next big thing. If nothing else, we’re sure it’ll be the first of many hydrogen IPOs to cross Street Talk’s desk in coming years.
Surely the awoken will lap this up..50 cents per kg is a sick...
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