With Mineros SA opening for trading for the first time today, we add our two cents’ worth on the IPO as noted in IKN561, last Sunday. A slight edit to remove the name of another company, the rest as-is:
The Mineros SA IPO
This news hit the wires on Friday evening, post-close:
MEDELLIN, Colombia, Nov. 12, 2021 /CNW/ – Mineros S.A. (MINEROS: CB) (“Mineros” or the “Company”) announced today that it has filed its final prospectus with the securities regulatory authorities in each of the provinces of Canada, except Quebec, and obtained a receipt therefor in respect of its initial public offering (the “Canadian Offering”) from treasury of 22,222,223 of its common shares (“Common Shares”) at a price of US$0.90 (being C$1.1207) per Common Share (the “Offering Price”), for total gross proceeds of approximately US$20 million (being approximately C$24,904,000).
This IPO has been in the pipeline for years (it was “about to happen” when I attended the first Colombia Gold Show back in 2018) and has taken what seems like forever to materialize. Meanwhile, Mineros SA has expanded its asset base by buying into normal hardrock mining operations in Nicaragua and Argentina. Expect plenty of market trumpeting for this limited IPO on the TSX, but don’t expect me to buy in to the Sprott spiel. The weak point of Mineros SA is and will always be its environmental footprint, being as it is essentially a river dredging mining operation and you can dress those up in all the words you like and show us the all the government-emitted health and safety certificates you want to try to prove your point, this type of precious metals mining is and will always be very damaging to river environments. This brief note, at the start of its Canadian listing, explains why you won’t see me talking about the stock again. Any insto that considers CSR in its investment decisions will run away from this trade and as that influence is growing fast, the small size of this offering compared to overall market cap suggests the company knows that all-too well and is aiming at retail only…this is an investment for people who don’t give a damn and if that includes you, hopefully you will be insulted enough to unsubscribe from The IKN Weekly.