Share Watch – Locksley Resources (ASX:LKY)
Listing last week on the ASX today with an underexplored but historically producing copper-gold project on its books in a flagship copper region, the Locksley Resources value proposition is attractive according to Barclay Pearce Capital director – Corporate Finance Tim Wilson, whose firm acted as lead manager on Locksley’s heavily oversubscribed $5 million IPO capital raise.
It’s clearly also the opinion of those who scrambled for their piece of the IPO, and it should come as little surprise to those with knowledge of the copper game.
A Forbes article earlier this year declared the red metal to be a competitor for the title of the ‘New Oil’ – a demand proposition driven by the global transition to renewable energy.
Everything from electric vehicles to wind turbines to solar panels need the commodity, with a lack of clear substitutes driving long-term forecasts high. It’s demand that isn’t expected to disappear any time soon.
“A lot of industries are relying on copper, not least of all the electric vehicle market,” Wilson said.
It’s not just the fortunes of the red metal driving interest in LKY’s listing. The company is sitting on one hell of a copper proposition in the world-class Lachlan Fold Belt region.
The 470km2 Tottenham project is a largely underexplored historic site, which includes a 30km strike length of volcanic hosted massive sulphide copper corridor.
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ASX 200 down 35.30 points or 0.48% since 4 July to 7,273.30. The Aussie dollar on 74.86 US cents.
Carbon Market Spot Prices
LGC $34.50 STC $38.80
ESC $34.35 VEEC $62.75
ACCU $20.00 EU ETS €54.02
Sources: RenewEconomy, demandmanager, Reuters, SMH, Market Watch