Investors in new market entrant Aphrodite Gold have suffered a paper loss after the miner finished below its issue price on its first day of trading.
The company, which controls the Aphrodite gold project about 65km from Kalgoorlie, traded between 17.5 cents and 15 cents, below the issue price of 20 cents.
Aphrodite closed its IPO in June, raising $9.25 million, surpassing the target of $8 million.
Aphrodite acquired the project from Apex Minerals in November 2009 for $7.2 million. For the IPO, Apex shareholders and Aphrodite Gold's associate Eagle Eye Metals' shareholders received a rpiority right to take up securities in the offer.
The Aphrodite project has a resource of about one million ounces, plus another gold mineralisation with a potential to delineate a further five to seven million tonnes, the company has said.
Aphrodite's finance director Wayne Ryder said the project, which will have cash costs of $700 to $750 per ounce, was attractive because the gold price was currently so high.
Mr Ryder said he was not concerned with Aphrodite's first day share performance.
"We have got a lot of gold. That is established, and our job is to get it out," he said.
Aphrodite is targeting first gold production from the project in late 2012.
