Malaysian gold miner Anchor Resources said its initial public offering (IPO) has been fully subscribed with total proceeds of $7.2 million.
The firm, which is now valued at about $69.9 million, lists on the Catalist board tomorrow.
A total of 28.8 million new shares, offered by way of placement, were sold at 25 cents each, representing 10.3 per cent of the group's post-IPO share capital.
Managing director and founder Lim Chiau Woei said yesterday that while the group has posted annual losses since the 2012 fiscal year, it expects to turn a profit by the end of this year.
"The losses for the past two years were mainly due to expenses on drilling, jobs, investments for building up the factories," he noted, adding that the company, set up in 2011, only began to record mining revenue in July last year.
"But this year, our tailings plant will operate at full capacity... so we expect to generate positive cashflow within this year."
Anchor Resources holds concession rights to the Lubuk Mandi Mine and the Bukit Panji Property within the state of Terengganu in Malaysia. Its gold resources amounted to about 114,000 ounces as at Sept 30 last year.
The Lubuk Mandi Mine sold about 142.5 ounces of gold between July and December last year, amounting to RM680,000 (S$226,200).
Mr Lim said the IPO proceeds will be used to expand exploration and drilling activity and on infrastructure and equipment.
The group is also aiming to increase its gold processing capacity, from 350,000 tonnes a year to 600,000 tonnes by the 2017 fiscal year.
Anchor's decision to list on the Singapore Exchange comes amid depressed gold prices.
The precious metal hit a five-year low in November but has rallied in recent months, reaching US$1,232 an ounce yesterday - marking a 16.2 per cent increase this year but still well down from the US$1,800 an ounce reached in 2011.
Mr Lim expects demand for gold from Asia and developing economies around the world to remain stable. "Gold is hedged against inflation. It's still something everybody is looking for, even though the global economy is not so good currently," he said.
"As long as the (United States) Federal Reserve doesn't raise rates (dramatically) this year, there is some upside potential for gold. The markets have already factored in the gradual increase in rates."
