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Kalkine IPO Report

Is this the right time to exit from SensOre Ltd?

Feb 22, 2022

Company Overview

SensOre Ltd provides machine learning and artificial intelligence (AI) technologies for mining industries in Australia. The company structures its activities into three core business divisions to leverage the value of AI-Target opportunities: Technology, Exploration, and Exploration Services.

Initial Public Offering

The company had launched its IPO on the Australian Securities Exchange under the ticker S3N. We had covered this IPO in our ‘Kalkine IPO Report’ on December 20, 2021 and concluded that this IPO was only “Attractive for High-Risk appetite investor” given its niche technology backed by big data and artificial intelligence, strong clientele base, strong topline performance in FY21, and improved cash position.

Daily Price Chart (as on February 21, 2022). Source: REFINITIV, Analysis by Kalkine Group

Conclusion

Investors who have invested into this IPO can consider ‘Exiting’ from their position at the closing price of AU$ 0.85 as on February 21, 2022, given:

  • Regulatory risk: Mining operations require various regulatory approvals & licenses at each stage of exploration.
  • Competition risk: The company faces stiff competition from both domestic and global players.
  • Liquidity risk: Given the micro-cap market categorization of the company, the investors of S3N are exposed to liquidity risk.

*The reference data in this report has been partly sourced from Refinitiv


Disclaimer

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