Uzbek Gold Miner NMMC Expands London IPO Efforts to Boost Valuation

Uzbek gold miner NMMC is exploring a London IPO, potentially valuing the company at £4 billion. Rothschild is advising the listing, set for possibly late this year. This effort is part of Uzbekistan’s asset privatization strategy, aimed at revitalizing London’s IPO market. NMMC is a major gold producer, contributing significantly to the national budget and expanding operations.

Navoi Mining & Metallurgical Co. (NMMC), one of the leading gold producers globally, is considering a London initial public offering (IPO) that could surpass a valuation of £4 billion ($5.2 billion). Rothschild & Co. is serving as an adviser for this potential listing, which may occur in the latter half of the year. NMMC previously raised $1 billion in bonds traded on the London Stock Exchange in 2022, with Citigroup and JPMorgan likely to play significant roles in the IPO as well.

The IPO deliberations are currently in preliminary stages, meaning specifics about the listing may evolve or face delays. No comments were made by representatives from NMMC, Citigroup, or JPMorgan, and Rothschild did not respond to inquiries. NMMC’s prospective flotation is part of Uzbekistan’s broader endeavor to privatize state assets. This move could also rejuvenate London’s IPO market, which has witnessed a drastic decline this year, having raised only about $76 million to date.

Historically, the UK has been a preferred market for mining companies; however, recent low valuations have caused some of the largest firms, like Glencore Plc, to consider relocating their primary listings. NMMC operates the expansive Muruntau mine, recognized as one of the largest open-pit gold mines in the world, yielding 2.9 million ounces of gold in 2023 and contributing approximately 20% to Uzbekistan’s state budget. Additionally, the firm employs over 47,000 individuals across 12 primary mining sites and nine processing facilities.

In a related development, NMMC plans to invest $23 million in expanding its operations at the Muruntau mine, indicating a commitment to enhancing its mining capabilities and output. This significant investment underscores NMMC’s strategic focus on growth in the competitive gold mining sector.

Navoi Mining & Metallurgical Co. is preparing for a potential IPO in London that could significantly boost both its valuation and the city’s IPO market. The company, known for its expansive operations and substantial contribution to Uzbekistan’s economy, aims to modernize and privatize state assets. With strategic partnerships in place and a solid foundation in gold production, NMMC’s plans could represent a pivotal moment for both the firm and the region’s mining industry.

Original Source: www.mining.com