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IPOs

Godolphin hopes

for racing start

2 019 was a tough year for resources IPOs with just six new floats hitting the

ASX, down from 32 in 2018, as investors preferred to stick with the tried-
and-trusted – established gold and base metals miners. With investors globally
showing little appetite for early-stage exploration stories, several prospective IPOs
were canned. In its annual review of the space, Paydirt finds a mix of commodity
and geographic focus among the hardy few who made it to the bourse.

ompanies contemplating a new re- folio,” Greenwood said. “Those nickel
Csources float in 2020 should probably laterite projects need a lot of attention
seek Ian Buchhorn out for some advice. and money so, while it was doing that, it
The veteran mining executive has couldn’t put the money into these assets
completed two successful IPOs in the which they deserved.
last three years, defying a market trend “And, because Ardea itself had been a
which saw just half a dozen new resourc- successful spin-out from Heron, the feel-
es listings in 2019. ing was: ‘Let’s do it again with the NSW
Buchhorn’s latest venture is Godolphin assets, give them new management and
Resources Ltd, which hit the bourse on their own identity’.
December 18 after a $7.5 million IPO. “Ian has a strong following among peo-
Godolphin is the home for a suite of New ple who did well out of Heron and Ardea.
South Wales assets previously held by There are a lot of believers. That was a
Ardea Resources Ltd. Ardea was itself big factor in getting it away.”
a spin-out of Heron Resources Ltd, Bu- Another factor in the successful capital
chhorn’s original company which is now raising was a piece of classic “nearol-
focused on base metals mining in NSW. ogy”. Godolphin’s portfolio is focused
David Greenwood has been installed exclusively on the Lachlan Fold Belt in
as chief executive at Godolphin, with NSW – it has the largest ground posi-
Buchhorn as non-executive director and tion on the belt with 3,200sq km. The
Mark Sykes as non-executive chairman. LFB is a renowned porphyry district with
Greenwood told Paydirt that Buch- large deposits such as Cadia-Ridgeway,
horn’s previous spin-out success en- Northparkes and McPhillamy’s, however,
sured there was a ready-made investor Godolphin’s IPO pitch was further boost-
base for Godolphin. ed in September by Alkane Resources
“Ardea was focused on its WA port- Ltd’s Boda discovery on the belt.
A sample from a gossan on Godolphin’s
Copper Hill East project
Page 58 FeBRUaRY 2020 aUSTRaLIa’S PaYDIRT