Sign up Australia
Proactive Investors - Run By Investors For Investors

Lemur Resources focused on thermal coal in Madagascar, first trades below IPO price

Lemur Resources focused on thermal coal in Madagascar, first trades below IPO price

Lemur Resources (ASX: LMR) in the first minutes of public life has traded at $0.19, slightly below the $0.20 IPO price.

Lemur is a very interesting company and is targeting coal in Madagascar, and recently completed a successful oversubscribed IPO which offered 125 million shares at $0.20 to raise A$25 million.

The company holds a number of coal projects in the country, with the initial focus being the Imaloto Coal Project located in the south-west.

Historical exploration conducted in 2008 and 2009 resulted in a JORC Inferred Resource in excess of 175 million tonnes of thermal coal, suitable for export as well as consumption as power station feed stock.

The IPO will now fund the proposed phase three exploration programs, which is targeting the higher confidence category of a Measured Resource, and also an overall increase in confidence that the project can move from the current exploration phase into a producing asset.

Blair Sergeant, managing director, added, "We are initially targeting a measured resource of up to 700 million tonne, up from the current 175 million tonne inferred resource.

“Global demand for coal is currently very strong, and there is no doubt that this was a major factor driving the interest in our recent IPO.”

Importantly for the future development of the company - the board and management team has a proven track record in developing assets in Africa, as well as strong links with regional governments.


Register here to be notified of future PROAC Company articles
View full PROAC profile View Profile

Proactiveinvestors Timeline

November 23 2016
November 23 2016

Related Articles

October 18 2016
Geographical expansion, product innovation and strategic partnerships continue to be well executed, said house broker finnCap
White board with marketing ideas
March 14 2017
There was a bit of a wobble in the run-up to the Brexit vote and shortly after it, but the group's 'buy, build & grow' strategy is taking shape
February 21 2017
One particular development of note is Cello Pulsar, a social media analytics tool that has, according to the experts, the potential to be a real winner.

© Proactive Investors 2017

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use