"The flood of mining floats continues at the ASX, but the performance of the last group and a quality check of whats on offer in the weeks and months ahead means it is time for investors to be very selective.
A rising tide lifts all boats, as the saying goes, and nowhere is that more apparent than the volatile market for mining floats where the reverse is also true is often brutally so.
Only a handful appear to have a reasonable investment case.
* Kimberley Rare Earths (KRE), which has the right to earn up to 55% of the Cummins Range rare earths exploration project in WAs Kimberley region where a small resource has already been proven. The stock is effectively a spin-off by the gold miner Navigator Resources. Kimberley is seeking to raise $18.2 million and expects to list on May 18.
That report was an extract from a book titled A sharebuyers guide to investing in the Australian Mining Boom, by Allan Trench. He listed five rules for sifting through a float: 1. Pick a metal that enjoys positive market sentiment. 2. Look for near-term production. 3. Target tight capital structure. 4. Good management, and 5. A fast start on drilling.
Said quickly, it sounds easy. But there are always doubts about each one of those points. Fortunately, over the next few weeks it will be possible to test Trenchs advice because he is on the board of one of the companies I have selected as being worth watching, Kimberley Rare Earths.
At first glance Kimberley Rare Earths looks the goods, with the markets mid-May verdict keenly awaited..."
I too am keenly waiting the up coming float..
KRE Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
