LionGold’s preference for scrip transactions has seen many Australian investors end up with an exposure to the Singapore based company

Singapore’s LionGold suffers 40% share collapse

October 5, 2013

Peter Ker

Australian gold investors with exposure to Singapore company LionGold were on the wrong end of the company’s curious share price on Friday, when the stock suddenly fell by more than 40 per cent. LionGold, which has spent the past 18 months acquiring some of Australia’s most marginal gold assets in exchange for its own shares, was put in a trading halt by Singapore authorities out of concern that the market was not fully informed. Among the Australian assets that LionGold has acquired since taking an interest in gold 18 months ago are the fields near Ballarat that played host to the Eureka Stockade.It has also acquired, or taken stakes in, marginal gold assets in Queensland and WA, plus a mine in Bolivia which has been considered to be at risk of nationalisation.

LionGold’s preference for scrip transactions has seen many Australian investors end up with an exposure to the Singapore based company, which did not return calls in the wake of the slump on Friday.

One director, Gary Scanlan, said he was unable to comment because he was away in Tunisia.

The movement of LionGold’s share price has been queried more than once, including during August when it rose by close to 40 per cent.

Two other Singapore companies with varying links to LionGold were also put into trading halts on Friday after their share prices fell spectacularly.

One of those, Blumont Group, has at least one common director with LionGold, and slumped by 56 per cent ahead of raising money to make a suspected takeover bid for Australian coal junior Cokal.

The other company, Asiasons, is a fund manager that owns the biggest stake in LionGold, and it fell 61 per cent before also being put into a trading halt.

Friday’s volatility on the Singapore stock exchange comes just days after Linc Energy announced plans to leave the Australian bourse in favour of listing in Singapore.

The move was bourne out of frustration at Linc’s share price volatility in Australia, and the belief that the stock was undervalued by the Australian market.

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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