Resources Stocks Down Under 19 January 2023: 29Metals (ASX:29M)

When 29Metals first listed on the ASX, back in June 2021, it was the largest base metals IPO in more than a decade. Furthermore, there was arguably no better time for the company to list. Copper prices were at record highs, ensuring positive investor sentiment and a substantial cash flow buffer for the company’s projects. It was led by Owen Hegarty and Peter Albert, who in the late 2000s led Oxiana to an $8.7bn merger with Zinifex to form Oz Minerals. The success of Oz Minerals, along with Sandfire Resources, illustrated that copper producers could make it on the ASX. And the fact that 29Metals was already a producer meant there was less risk for investors compared to small cap explorers. The first year of listed life went well for the company, but the second year not so much.