Australian junior exploration floats, 2001-06, and their implications for IPOs

A peer revied paper in the journal 'Resources policy'. An analysis of 179 junior exploration floats, listed on the Australian Securities Exchange (ASX) between July 2001 and June 2006, helped to build a basic understanding of the strategy and business structure of these companies. The “typical” junior explorer raised A$4 million at initial public offering (IPO) to finance a 2-year, mainly greenfields exploration program. The capital raised at IPO entitled its investors to approximately half of the company, with the balance in the hands of the promoters, vendors and/or seed capital investors. Of the A$4 million raised at IPO, it intended to spend approximately two-thirds on exploration, while the remainder was absorbed in corporate overheads and the costs of the IPO. Once these were paid, ongoing corporate overheads averaged approximately 28% of its total operational expenditure. However, given an average total annual expenditure of approximately A$2.6 million, most juniors held insufficient capital reserves to meet operational costs beyond a time frame of 2 years. As at October 2006, 9% of the companies were in the process of mine construction, whereas 6% had made it to producer status. The lead time from listing to production ranged from 1.5 to 53 months, giving a median of 28 months.

Website:

http://www.sciencedirect.com/science/article/pii/S0301420707000530

Date (Creation): 2007-12-01

Date (Publication): 2007-12-01

Date (Revision)

Citation identifier: https://www.mica-project.eu/ / MICA_B2-15
MICA WP3 2017-09-25T10:33:00 Record extracted from Batch 2 spreadsheet

Other citation details: No additional information provided about the dataset

Purpose: Purpose for data generation is not known

Status: Completed

Point of contact

Organisation name	Individual name	Electronic mail address	Role
Centre for the Geochemical Evolution and Metallogeny of Continents, Macquarie University			Resource provider

Maintenance and update frequency: Not planned

dataCentre

MICA

MICA ontology (TemporalScheme)

Historic (includes data up to or including 2005)

MICA ontology (DataScheme)

General descriptive information / Paper

Keywords

Requirement for data generation: Voluntary

Keywords

Method of data or information generation: Academic research

GEMET Concepts

Exploration

GEMET Concepts

Other economic activities

GEMET Concepts

Reserves

GEMET Concepts

Resources

GEMET Concepts

Stocks

INSPIRE commodities

Gold

INSPIRE commodities

Silver

INSPIRE commodities

Platinum

INSPIRE commodities

Palladium

INSPIRE commodities

Other platinum group metals (iridium)

INSPIRE commodities

Other platinum group metals (osmium)

INSPIRE commodities

Other platinum group metals (rhodium)

INSPIRE commodities

Other platinum group metals (ruthenium)

INSPIRE commodities

Aluminium

INSPIRE commodities

Copper

INSPIRE commodities

Lead

INSPIRE commodities

Zinc

INSPIRE commodities

Chromium

INSPIRE commodities

Cobalt

INSPIRE commodities

Iron

INSPIRE commodities

Manganese

INSPIRE commodities

Molybdenum

INSPIRE commodities

Nickel

INSPIRE commodities

Niobium

INSPIRE commodities

Tungsten

INSPIRE commodities

Vanadium

INSPIRE commodities

Anthracite

INSPIRE commodities

Bituminous coal

INSPIRE Fossil Fuel

Other hard coal

INSPIRE commodities

Lignite