A tough week to IPO… MiningNews.net had this to say after the first day of trading on Monday… ”AFTER a protracted raising period, three supplementary prospectuses, a potential breach of Western Australia’s Mining Act, and community opposition to its plans, Allup Silica finally commenced trading today”
And after a bumpy start it didn’t get any better. Over the week the market lost 3%, but Allup lost nearly 30%. Even amongst its peers (DRX VRX ASQ) Allup has done poorly, falling nearly double the next nearest stock - ASQ (15%). Disappointing on IPO for a hot commodity, and one that’s just been added to Australia’s Critical Minerals List…
I can’t help thinking that Allup would be in a better position now and going forward without Antwalker. The tenement - E70/5455 has been under application since may 2020 which should give you some idea there are complications. The Board acknowledged in the prospectus that there would be work to do taking Antwalker forward, but that appears to have been a significant understatement, with little appreciation for the ESG, development and approval risk. The board appears to have approved exploration activities in and around E70/5455 prior to it being granted, and are yet to learn their fate on that front. No small matter as E70/5455 is located in DBCA managed State Forest, and is also entirely within the Quinninup Dam Catchment Area and the Warren River Water Reserve, both proclaimed under the Country Areas Water Supply Act 1947. It is also adjacent to National Park, and less than 500m from residences in the hamlet of Quinninup. This on top of the usual flora, fauna, hydrology and other EPA hurdles.
Yep, from a distance Antwalker looks interesting, almost attractive, what with the historical BHP drilling and what looks like a shorter development pathway… look a little closer and it starts to look a little different ♂️ Yep, Antwalker is going to hold Allup back.
FIRST WEEK OF TRADING
APS Price at posting:
14.5¢ Sentiment: None Disclosure: Not Held
