When To Go Public: The Pros And Cons And How To Do It

Management teams at mining companies begin to ask themselves whether to take a company public and, if so, how to do it as they approach the normal threshold for going public in terms of revenue and operating performance. Today, the expense of going public generally suggests the company has at least $20 million in annual revenue and at least $2 million in cash. The revenue number can be lower for mining companies with large reserves. In order to properly attract the investing public, the company must also be operationally strong with robust prospects. The company should have a strong management team and a consistent history of double-digit growth that will continue into the foreseeable future. Assuming the thresholds are met, a company?s management needs to weigh the pros and cons of going public.