Australian Shares Sparty's Blog
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Posts on this website are general "tips" and nothing more than that and should never be used to make an investment or trading decision. All information should be carefully cross-checked against official sources for accuracy.
Main Forum•Ground floor entry to multiple Rare Earth Deposits
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Being an early stage investor entails both risk and reward. Personally I think that this is a great way to get a lot of zing into a portfolio... Obviously you don't bet the house... but when it works the rewards can be astronomical.
I've done it several times... I entered LYC and EXT before they were on the broker's radars and LYC has given me 21x and EXT took my 20K to 500k. I came out of EXT some time ago and still have a lovely chunk of LYC.
Perhaps the company that is in some way analogous to the IPO I'm going to mention is the late GIRALIA Resources (ASX: GIR) that were just taken over by Atlas (ASX: AGO). Giralia had gone around Australia and pegged a lot of ground with lots of different resources, including gold, iron ore, uranium etc. as shown by the image below:
Most brokers weren't at all interested in GIR as it confused them and I suspect that our Australian brokers don't like to do their homework. But it did return a lovely 20 bags plus and a couple of its spin-offs including ZNC have done even better....Now we have a chance to get set in a new type of Rare Earth's and "Strategic" Elements Play: Strategic Elements Pooled Development Fund with the primary strategy of being an early investor into small and medium Australian companies and assist them with capital, technical expertise and alliances with industry players. The Company provides investors with exposure to a small portfolio of rare earths focused companies in their early growth stages through their single investment in the Company. And as a "Pooled development Fund" most investors won't have to pay capital gains.... This link takes you to the prospectus download page...
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Sparty, What association do you have with this fund?
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Hi there, How successful are Pooled Development Funds in the floats on ASX? Why do they this way as oppose to a standard company? Also, do you have anything else in the upcoming floats that attracts your interests? you feed back is appreciated. regards, David
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Hi Alite, I have no association with them beyond my daughter's energy sites running an ad for them.
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Re DavidL's question. How successful are Pooled Development Funds in the floats on ASX?
I haven't followed one before, but after reading the list of PDF's I see that I actually have shares in one (MEC) and I wish I had bought into another, ACRUX. (ACR).
According to the Ausindustry.gov.au pdf there are 38.
They (PDFs) are designed to help small and medium companies by encouraging investors to participate by providing tax advantages to the investors. The structure seems a bit like Canada's flow through scheme that was designed to stimulate Canada's early exploration and emerging producers... (I guess, in a way, it is somewhat like an ETF but with some real tax advantages to make them sweeter...).
Here is their web address...http://www.strategicelements.com.au/
Re upcoming floats... I get asked to invest in some from time to time. I'll post them when they come through if you like.
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Hi, I had a look at SOR and it made sense. I invested some cash with their float (my first real investment in shares) last week. If it does anything near your past experiences I will be over the moon! Like your site, think it's great. Cheers, Anthony.
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What a rotten time to float....
Even the big REE companies have been hit. http://www.australianrareearths.com/asx-listed-rare-earth-companies-wth-jorc-deposit.html
