top of page

Share Watch – 6 June 2021

Share Watch –  Locksley Resources 

Readers will know that we have been banging on about the future of copper for some time. To support this, a recent Forbes article declared copper was a strong competitor for the title of ‘New Oil’ or “King of the energy sector”. The reasoning behind this claim is that copper will play a pivotal role in the global transition to renewable energy. Electric vehicles, wind turbines, and solar panels will all require copper in their constitution with no cheaper substitutes. Moreover, copper has for years been used as an alloy for jewellery, in construction of buildings, for industrial machinery, and even for medicinal purposes due to its bacterial resistance.

Locksley Resources have just launched their initial public offering (IPO). They are seeking to raise A$5m in capital for the exploration of their copper tenements which have the potential to deliver significant growth for shareholders.

Locksley’s flagship asset is the Tottenham Project which is located on an area of 470km2 in the Cobar-Girilambone district in central NSW. The two primary deposits within Tottenham, Carolina and Mount Royal, have a combined current estimated resource target of 86,100 tonnes of contained copper and 90,600 ounces of contained gold but an immediate exploration drilling program planned with IPO funds could result in a significant exploration upside. Moreover, the project has infrastructure already in place with access to roads and rail.

Locksley’s IPO is raising A$5m at $0.20 per share issuing 25m fully paid ordinary shares. This will leave the company with an IPO enterprise value of approximately $6.2m, which is well priced within the current market and presents potential blue sky for incoming investors. A similar ASX comparable listing is Helix Resources (ASX: HLX) which has exploration opportunities close to Locksley in the Cobar region. The HLX share price has seen rapid appreciation recently and is up 320% 2021 YTD to a market capitalisation of ~A$45.3m as of 25 May 2021.

Locksley is led by an experienced and dedicated board and management team. Pivotal to that team is Managing Director Steve Woodham who has over 30 years of industry experience and an impressive track record of tenement acquisition, mining investment, and commercial negotiation. Woodham was a founding director of Centaurus Resources, YTC Resources (Aurelia), and managing director of Kingwest and Tellus Resources.

Contact Barclay Pearce Capital if you are interested in getting onboard.

Financial indicators

The VIX fear gauge down slightly since 30 May by 0.34 of a point to 16.42 and further into the safe risk zone.

The Dow Jones Industrial Average up 227.14 points or 0.66% since 30 May to 34.756.39, the STOXX 600 up 3.59 points or 0.80% to 452.57 and the Shanghai Composite index down 8.94 points or 0.25% to 3,591.84.

Gold up to 1,894.10. US 10-year Treasury Bonds down to 1.554 and oil up to 69.38. Cryptos Bitcoin up by 239 points or 0.66% to 36,249.

ASX 200 up 115.90 points or 1.61% since 30 May to 7,295.40. The Aussie dollar up to 77.38 US cents.

Eco Market Spot Prices

LGC $35.15

STC $38.60

ESC $31.85

VEEC $63.25

ACCU $18.50

EU ETS €50.14

Sources: RenewEconomy, demandmanager,  Reuters, SMH, Market Watch, Stockhead

0 views0 comments
bottom of page