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News.com.au
2 days ago
- Business
- News.com.au
Return of the IPO market good news for miners
IPOs have ground to a halt, with no mining listings on the ASX through May But a wave of new explorers and producers are about to hit the bourse Delta Lithium's gold spinout Ballard Mining and Telfer owner Greatland Gold among the high profile names While markets have been volatile in the past few months, a positive sign for the mining market is a pick-up in initial public offerings. Lion Selection Group (ASX:LSX) managing director Hedley Widdup recently pointed out that IPOs were one of the best barometers of the mining cycle because they reliably tracked liquidity. 'When liquidity is poor, it is very hard to achieve an IPO of an exploration company, and likewise when liquidity is freely flowing, investors gobble these up,' he said in Lion's recent quarterly report. In the peak of the market, in 2021, there were 105 mining IPOs. That fell to 64 in 2022, 25 in 2023 and 15 in 2024. There have technically been none yet this year. Canada's Marimaca Copper dual listed on the ASX earlier this year but as it did not raise funds, not a single share has traded in the two months since its debut. Southern Cross Gold Consolidated re-listed on the ASX with a new code after merging with Canada's Mawson Gold. 'In 2025 so far, there have been zero IPOs of resources companies that raised new money to achieve a brand-new listing, which is a litmus test that shows liquidity conditions generally remain subdued,' Widdup said. Test starts today Today, the ASX will welcome its first proper resources IPO this year when Robex Resources debuts. Robex is based in Perth but listed in Toronto and managing director Matt Wilcox recently said poor liquidity on the TSX was behind the move to Australia. The Jim Askew-chaired company, which operates a small mine in Mali and is developing the larger Kiniero mine in Guinea, raised $120 million in its IPO. Meanwhile, new Telfer owner, London-listed Greatland Gold, is pushing ahead with its ASX cross listing which is expected to raise $50 million. Robert Friedland's Ivanhoe Atlantic, developer of the Nimba iron ore project in Guinea, is expected to launch an Australian IPO shortly. CEO Bronwyn Barnes, who also chairs ASX-listed explorer Indiana Resources (ASX:IDA), said Australia was the right place to list Ivanhoe. 'When you're talking about the market that understands iron ore, Australia is a perfect market for this company and for this product, and it also has a very strong familiarity of African projects,' she told the recent AFR Mining Summit. 'But a little bit more broadly than that, at Ivanhoe Atlantic, we've got a bit of a bigger vision about what we'd like to do, not only with the Nimba project, but other projects that we're interested in acquiring. 'And I think being present on the ASX platform gives us opportunities to either acquire or partner with other existing assets or companies on the development of other assets.' AIM-listed Ariana Resources and Toronto-listed Orezone Gold are also progressing Australian dual listings. Right time for Delta Last month, Delta Lithium (ASX:DLI) announced it would spin out its Mt Ida gold project in Western Australia's Goldfields into new company Ballard Mining. Mt Ida has a resource of 10.3 million tonnes at 3.33 grams per tonne gold for 1.1 million ounces of gold. Delta managing director James Croser told Stockhead the company had focused on getting the Mt Ida gold project to a point where it could support a listing, which would allow Delta to countercyclically focus on its lithium projects. 'The gold market timing has lined up nicely as well, and it just seems like the best time for us to set it free,' he said. On Friday, Ballard lodged a prospectus for a $25-30 million IPO, led by Bell Potter Securities and Argonaut. 'The quantum of the raise was a much-discussed number,' Croser said. 'We felt we probably could have got some more, and the market would have delivered on that … the valuation we've put on those 1.1 million ounces that exist there, they're really compelling metrics, and the market will see that, and it has seen that, and a lot of the feedback we've got is that it is extremely well priced. 'That was by design, because you've got to leave something on the table for the new money to enjoy an uplift and you really want to establish that momentum early on in the life of a listing, and we think it's going to run pretty hard and be very successful, and I can't wait to see it happen.' Delta will retain a 46-49% stake in Ballard, depending on the final amount raised. Croser will sit on the board, which also features former De Grey Mining chairman Simon Lill, while Delta chief development officer Paul Brennan will resign to become managing director of Ballard. Former Ramelius Resources (ASX:RMS) and Wildcat Resources (ASX:WC8) chief financial officer Tim Manners will be Ballard's finance director, while Gold Fields' former Australian boss Stuart Mathews will be a non-executive director. Juniors awakening Ballard, which is aiming to hit the board in mid-July, isn't the only explorer on the way to the ASX. Bauxite developer VBX is scheduled to list on the ASX next week after launching a $10 million IPO last month. The company is planning to use the funds to complete a definitive feasibility study on its Wuudagu bauxite project in WA's Kimberley region, which has a resource of 95.9Mt and a reserve of 59.3Mt. VBX also holds the earlier stage Takapinga bauxite project in the Northern Territory. Last week, LinQ Minerals lodged a prospectus for an IPO to raise $7.5-10 million. LinQ is chaired by Clive Donner, a former investment banker and founder of mining private equity fund LinQ Group. The company owns the Gilmore copper-gold project, south of Evolution Mining's Cowal mine in New South Wales. Gilmore has a resource of 1.2 million ounces of gold and 120,000 tonnes of copper. LinQ is aiming to close the IPO on June 20 and list on July 4.
Daily Telegraph
27-05-2025
- Business
- Daily Telegraph
DLI gold spin-off Ballard has the right stuff
Don't miss out on the headlines from Stockhead. Followed categories will be added to My News. Special Report: While junior explorers branching off non-core assets is hardly uncommon, it's not every day that a spin-off begins life with a gold asset with defined resources above the million-ounce mark. Delta Lithium's spin-off Ballard Mining will debut with a resource of more than a million ounces of gold Ballard will have an experienced team including chairman Simon Lill and Delta's chief development officer Paul Brennan as its MD Post-IPO activity will include drilling to boost existing and find new resources as well as work towards development That's exactly the exalted position that Delta Lithium's (ASX:DLI) spin-off Ballard Mining will enjoy once it hits the ASX, given that it will hold the Mt Ida project that has an inferred and indicated resource of 10.3Mt grading 3.33g/t, or 1.1Moz of contained gold following a recent resource upgrade. The upgrade came after Delta let the market know about the gold prospectivity of Mt Ida, where an initially modest gold resource had been defined from its lithium-focused drilling, then supercharged by targeted gold drilling over the last 6 months. Managing director James Croser told Stockhead in a video interview in late May that the company decided to spend $5-6m in September 2024 to specifically target gold. This proved to be money well spent after it delivered a resource that exceeded the company's target of a million ounces – the magical point where potential project lenders sit up and take notice. While no doubt thrilled by the find, the company then decided on a spin-off as it felt the funds used for drilling for gold had originally been raised for lithium exploration and Delta needed to honour that lithium commitment. Croser said that while the gold was a wonderful distraction to have, it not desirable to utilise cash raised from lithium investors for the significant sums needed to test the large gold potential at Mt Ida. 'It will take … $25-30m to advance the Delta gold assets at Mt Ida and we decided the best way to do that was in a separate vehicle,' he noted. Golden credentials This led to the decision to spin-off Mt Ida into Ballard Mining, which will raise between $25m (minimum subscription) and $30m (maximum subscription) through an initial public offering priced at 25c per share to fund exploration. Delta shareholders will retain exposure to the gold asset as they will receive one fully paid Ballard share for every 11.25 Delta shares they own as part of the spin-out while Delta itself will hold between 46% and 49% of the new company depending on the take-up of the IPO. 'Ballard will be raising $30m and that'll be 100% dedicated to gold exploration growth and development at the Mt Ida gold asset and Delta gets to ride that wave. (We) will still be exposed via our shareholding in Ballard but we will be a pure lithium business,' Croser said. While this funding will allow the new gold company to go all out with exploration, the composition of its leadership is also headline-worthy. Chairing the board will be Simon Lill of De Grey Mining fame while Delta's chief development officer Paul Brennan will be leaving to take up the helm as Ballard's managing director. Lill oversaw De Grey from its beginnings as a gold minnow and through its explosive growth following discovery of the renowned Hemi asset and its eventual acquisition by Northern Star (ASX:NST), which wrapped up in May this year. Former Ramelius Resources (ASX:RMS) and Wildcat Resources (ASX:WC8) chief financial officer Tim Manners will also step down as a non-executive director of Delta to take up an executive position at Ballard to assist Brennan. 'Stuart Matthews used to be the executive vice president of Goldfields Australia, so he'll be a non-executive director. And I'll be there as a non-exec looking after Delta's interests,' Croser said. Gold resources at Mt Ida. Pic: Delta Lithium Watch: Perfect timing for a golden move at Mt Ida Expansion plans This team will oversee an ambitious work program that could deliver significant progress towards a final investment decision for Mt Ida, which covers some 250km2 of ground. 'Ballard's going to be a very exciting proposition with $30m to spend on the growth piece at Mount Ida,' Croser said. 'They'll be exploring the 26 kilometres of strike around the Copperfield Granite, which really hasn't had any serious gold exploration outside the Baldock area for decades, if ever. 'Everyone's been drilling holes around the Baldock deposit, and that's yielded 930,000 ounces. So a big portion of the use of funds will be looking to expand the gold resources and find another Baldock.' He added that infill drill at Baldock could underpin a pretty good mine reserve. Besides Baldock, the recent resource upgrade also increased resources at the Kestrel deposit to 53,000oz at 1.7g/t gold and defined maiden contained resources of 33,000oz, 40,000oz and 11,000oz for the Bombay, West Knell and Jupiter deposits. The regional drilling and infill work at Baldock will help complete metallurgical and geotechnical studies to a DFS level and progress the project towards FID. A works approval has already been submitted for a processing plant with capacity of up to 1.5Mtpa and associated tailings storage facility. On listing Ballard will also start the process of converting exploration leases into mining leases for regional resources. In-principle approval for the demerger has already been received from the ASX. Delta itself will be busy carrying out exploration at the newly expanded Yinnetharra lithium project following the acquisition of the adjacent Aston project that gives it a dominant position over the Thirty-Three supersuite granites, which are proven to be the source for the Malinda and Jameson deposits. This article was developed in collaboration with Delta Lithium, a Stockhead advertiser at the time of publishing. This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions. Originally published as Delta spin-off Ballard's star team and big gold inventory will be its key drivers
Yahoo
21-05-2025
- Business
- Yahoo
Minerals 260 sells Aston lithium-REE project tenements to Delta Lithium
Australian miner Minerals 260 has signed a binding agreement with Delta Lithium to sell its Aston lithium-rare earth elements (REE) project tenements in the Gascoyne region of Western Australia (WA). The transaction includes a A$450,000 cash payment upon completion of the sale. It also includes a 1.5% net smelter return (NSR) royalty on future sales of lithium and associated minerals from the site such as tantalum, caesium, beryllium and rubidium contained within the lithium-bearing ores. The NSR royalty offers Minerals 260 shareholders long-term exposure to potential future exploration benefits at the Aston project. The Aston project is situated adjacent to Delta's Yinnetharra lithium project. The sale and purchase agreement stipulates 100% disposal of the tenements, which includes a total of 17 tenements listed under various codes. The completion of the disposal is set to occur within five business days following the receipt of Ministerial consent under the Mining Act to transfer two of the tenements, or within 30 days after executing the agreement. Until the completion of the sale, Minerals 260 is responsible for maintaining the tenements in good standing. The sale of the Aston project aligns with the company's strategy to focus on the exploration and development of the Bullabulling gold project, located 25km south-west of Coolgardie in WA. The Bullabulling gold project has the potential for an open-pit mining operation. The project has a JORC 2012 mineral resource estimate of 60 million tonnes at 1.2 grams per tonne gold, equating to 2.3 million ounces of gold. The project spans a contiguous 570km² tenement package and offers significant exploration prospects. In April 2025, Minerals 260 raised capital before costs of $220m to develop the Bullabulling project. "Minerals 260 sells Aston lithium-REE project tenements to Delta Lithium" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
The Australian
15-05-2025
- Business
- The Australian
DLI spins out Mt Ida
Special report: Delta Lithium has entered into binding agreements to demerge its full interest in the Mt Ida project to Ballard Mining, pending shareholder and ASX approval. Delta's Mt Ida asset will be spun out via a demerger and concurrent IPO A new, standalone and gold focused ASX-lister will be formed, named Ballard Mining Delta will retain upside exposure to Ballard through a substantial equity holding in Ballard As part of the proposed spin-out, eligible Delta Lithium (ASX:DLI) shareholders will receive one fully paid Ballard share for every 11.25 Delta shares they own, retaining exposure to the Mt Ida asset through an in-specie distribution. Ballard intends to conduct an initial public offering, targeting a raise of $25-30 million at 25c per share, to facilitate its proposed admission to the ASX official list. Following the demerger and successful IPO, Delta will maintain a significant interest in Ballard— roughly 49% at the minimum raise, and 46% at the maximum. The spin out paves the way for DLI to continue focusing on its primary business, being the exploration and development of its lithium assets at Mt Ida and Yinnetharra in WA. Potential for a standalone mining operation The decision follows an update to the inferred and indicated resource at the Mt Ida asset, now totalling 10.3Mt at 3.33g/t gold for 1.1Moz, significantly increasing the project's gold inventory and demonstrating the presence of a large system. DLI said the update represented significant potential upside for future exploration across the 250km2 Mt Ida tenement package (including pending tenure) and another 1,300km2 for water exploration. In light of its scale and viability as a standalone mining operation, Delta determined it was the right move to spin off the asset, a decision which comes at a time when lithium prices are depressed but gold prices are near record highs at close to A$5000/oz. Delta will remain as a lithium focused exploration and development company and will retain Delta's balance sheet strength by maintaining a significant shareholding in Ballard post demerger. Upon successful ASX admission, Ballard will allocate IPO funds to accelerate exploration at Mt Ida, including regional drilling and infill work at Baldock, aimed at completing DFS studies and progressing toward a final investment decision. Ballard, named after Lake Ballard – a local landmark in WA's Shire of Menzies famed for hosting the Gormley sculptures – will hold the gold asset through its shareholding in Mt Ida AU Pty Ltd, which will be a wholly owned subsidiary of Ballard. 'Opportune time in the gold price cycle' DLI managing director James Croser believes that the separation of the lithium and gold assets will create greater value for shareholders of both Delta and Ballard by enabling direct participation in the growth of the gold asset through an independent vehicle. "Delta has been working diligently towards this outcome for some time, and we are delighted to be finally able to announce these details of the demerger and Ballard IPO,' he said. 'Re-setting the exciting and prospective Mt Ida gold asset into Ballard, a pure new gold company, at such an opportune time in the gold price cycle best positions Ballard to launch into early success, underpinned by a strong foundation of 1.1Moz gold and a new dedicated and specialised management team. 'Momentum is crucial to a new listing and the pricing of the gold asset is compelling with significant potential to create investor returns and shareholder value.' Forecasters continuing to tip higher levels for gold, despite a recent pullback from an apparent normalisation of trade relations between the US and China. By way of example, State Street Global Advisors says 'there is a strong tactical and strategic case to be made that the gold market has transitioned to a higher price regime north of US$3000/oz.' They've loaded up a new baseline floor price of US$3000-3100/oz, with a base case of US$3100-3500/oz for 2025. Their H2 bull case has been upgraded, with new projections ranging between US$3500 and US$3900 per ounce. Looking ahead If approved by shareholders, the demerger is expected to be completed by early July 2025. Ballard has secured a high-calibre and experienced team with extensive experience in mineral exploration, project development, mining and financing in the resources industry. The team includes a combination of existing Delta directors and new appointments, including two independent non-executive directors with suitable technical expertise. The Ballard board and senior management comprises previous De Grey (ASX:DEG) chairman Simon Lill as independent non-executive chairman, Paul Brennan as managing director and CEO and former Ramelius Resources (ASX:RMS) CFO Tim Manners as finance director. Proposed chairman Simon Lill said Delta has done an excellent job in preparing Ballard for a spin out on behalf of its shareholders through IPO. 'I was pleasantly surprised with the substantial exploration upside at the Mt Ida gold project,' he said. 'With multiple walk-up targets over a largely untested 16km of trend, the opportunity to find another Baldock with its 930,000oz at 4.1g/t Au is real with the potential to grow into a camp-scale endowment.' This article was developed in collaboration with Delta Lithium, a Stockhead advertiser at the time of publishing. This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
Forbes
07-05-2025
- Business
- Forbes
Australian Billionaires Forrest And Rinehart Turn Iron Ore Into Gold
No-one has ever been able to turn lead into gold, as medieval alchemists promised, but two Australian billionaires have found a way to turn iron ore into gold. Gina Rinehart and Andrew Forrest with fortunes estimated by Forbes at $30.1 billion and $14.8 billion respectively have added gold to their better-known interest in mining iron ore. Going for gold, iron ore billionaire Andrew Forrest. Photo William West/AFP via Getty Images) AFP via Getty Images In Rinehart's case the addition of gold is almost accidental with a small lithium exploration company in which she has a 10% interest carving out a gold business with the aim being to catch the record gold price of more than $3380 an ounce. Delta Lithium, which has been hit by an 80% collapse in the price of the battery metal, is now working on the creation of Ballard Mining which aims to redevelop the Mt Ida goldmine in Western Australia. The historic mine is located close to Lake Ballard which is home to 51 steel statues made by British artist Antony Gormley and installed in 2003 for a temporary exhibition but have remained as a tourist attraction. One of the 51 steel figures by Antony Gormley on Lake Ballard, a salt lake, installed in 2003 as a ... More temporary exhibition that stayed, drawing acclaim from visitors and affection from locals, The figures extend around an ironstone mound on the edge of the lake in Western Australia. (Photo by: Auscape/Universal Images Group via Getty Images) Universal Images Group via Getty Images The addition of the gold asset to a struggling lithium business has revitalised the Delta share price which has risen by 18% over the past month but remains well below its peak during the lithium boom of two years ago. Forrest is more focused, playing a key role in creating a world class goldmining company based on the big Telfer mine in Western Australia. Greatland Gold, currently listed on the London Stock Exchange, but planning to relocate to Australia, been a spectacular performer over the past 12-month with its shares rising by 150% to 14.6 pence. Forrest and his separated wife Nicola, through their company, Wyloo, have an 8.45% interest in Greatland but have indirect interests which could see their stake rise to 21% of Greatland which has a current stock market value of $2.5 billion. In theory, that means the Forrest duo will have turned a modest initial investment in Greatland into a stake worth more than $500 million. The complex evolution of Greatland from obscurity into an emerging gold leader has involved a series of deals, capital raisings, and the appointment of leading businesspeople to the company's board. Greatland Gold director Elizabeth Gaines (Photo by) Getty Images Greatland's chairman, Mark Barnaba, is a long-time director of Fortescue, the iron ore business controlled by the Forrests. Other directors are Elizabeth Gaines, a former chief executive of Fortescue and Jimmy Wilson, a former head of the iron ore division of the world's biggest mining company BHP. The key assets in Greatland are the Telfer ore processing plant, unmined areas of the primary orebody and nearby ore deposits being developed to feed the Telfer plant. Gold, for Rinehart and Forrest, is secondary to their iron ore assets but with the gold price rising and the iron ore price falling it's likely that gold will become of increasing interest.
