- 2021 on track to have more ASX floats than 2019 and 2020 combined.
- About one-third of all upcoming IPOs are gold mining resource companies.
- Gold price rises are tied to increasing inflation and rising crude oil prices.
It?s been a bumper year for initial public offerings (IPOs) on the Australian Securities Exchange (ASX) in 2021 with resources stocks ? and gold miners in particular ? dominating all listings.
Of the 26 upcoming IPOs expected to list between now and the end of November, 11 are pure gold-focused exploration companies, or are miners which are exploring for gold and other metals such as copper.
On 27 October, gold explorer Star Minerals Ltd (ASX:SMS) was the latest to float on the ASX, raising A$5m, as it looks to develop its mine-ready gold resource at Tumblegum South, situated 40km south of Meekatharra in Western Australia.
One month ago, Koonenberry Gold Ltd (ASX:KNB) listed and has enjoyed a more than 54% increase in its share price over the past two weeks.
There were 125 IPOs from 1 January to 1 October this year. This is compared to 77 listings in 2020, while just 52 companies floated on the ASX in 2019, as COVID-19 decimated markets and access to capital.
Many gold stocks are coming to market on the back of rising gold prices.
The gold price has performed well in 2021 and traded at A$2,394.39 an ounce on 25 October. Comparatively, in 2001 the gold price was under A$600/oz.
In general terms, the gold price is bolstered by rising inflation, which is strengthened by high crude oil prices.
Australian Bureau of Statistics data has shown that the headline consumer price index (CPI), which measures household inflation and includes statistics about price changes for household expenditure, increased 0.8% in the 3Q and 3% for 2021.