Allup Silica (ASX:APS) rebukes critics as shares struggle post-IPO

• Allup Silica (APS) claims negative social media has been a factor in the poor performance of the sand company’s shares since it listed on the ASX on May 2
• Executive Chairman Andrew Haythorpe says while global volatility has contributed to the lower share price, negative statements by a few HotCopper subscribers don’t help
• Allup critics suggest the company is looking to mine in forestry areas in southern WA where mining is not permitted — claims Mr Haythorpe says are “completely non-factual”
• Allup raised $5 million through its IPO and is working towards producing high-quality silica sands from production sites in the north and south of WA within three years
• Allup Silica shares are trading at 12.5 cents at 2:06 pm AEST — 37.5 per cent below the company’s IPO price

Allup Silica (APS) claims negative social media has been a factor in the poor performance of the sand company’s shares since it listed on the ASX on May 2.

Executive Chairman Andrew Haythorpe said global volatility had contributed, but negative statements by a few HotCopper subscribers didn’t help.

“We’ve had some pretty harsh critics through social media, in the last two months probably, and literally just two or three people,” he said.

The critics have suggested the company was looking to mine in forestry areas in southern Western Australia, where mining is not permitted.

“No, there is no substance to these claims. In fact, their claims are completely non-factual and completely unrelated,” Mr Haythorpe said.

“In any forestry area where mining is not allowed, we will not be exploring. Allup Silica’s policy is only to explore areas where mining is potentially permitted.

“The share price is self-evident, and we’re working very hard, obviously, for building the value of the company moving forwards now that we’re listed.

“When we priced the IPO late last year we did a peer group comparison.”

We actually priced ourselves at, arguably, about half the price of our peer group — or more than a 50 per cent discount to our peer group, so we thought we had a pretty good handle on where the IPO price was relatively inexpensive and relatively attractive.”

Allup raised $5 million through its IPO and is working towards producing high-quality silica sands from production sites in the north and south of Western Australia within three years.

Mr Haythorpe said the money would fund about two years of development.

He said he was encouraged by some unsolicited enquiries about sand supplies since the company joined the ASX.

Allup Silica has a market cap below $11.5 million and shares were trading at 12.5 cents at 2:06 pm AEST — 37.5 per cent below the company’s IPO price.