ASX-listed gold miner Resolute Mining has commenced preparatory work for an application for admission of its shares to the standard listing segment of the official list of the FCA and to the London Stock Exchange.
Subject to the required regulatory approvals from the FCA and the LSE, including publication of a prospectus, Resolute Mining intends to seek LSE admission during the first half of 2019.
MD and CEO, John Welborn, expressed his excitement that Resolute Mining is now ready for a strategic move into a bigger market:
“The London Stock Exchange is a natural home for large mining companies with African exposure. Resolute presents a compelling investment opportunity to investors in London and internationally who appreciate the scale of operations and our ambition to be a low cost, multi-mine African-focused gold producer.
“With sub-level caving due to commence at the Syama underground mine in the coming weeks, and the associated increasing market relevance of the world’s first fully automated underground mine, we believe now is the perfect time to seek a listing on the main market of the London Stock Exchange.”
Admission of Resolute Mining’s shares to the standard listing segment of the official list and to the main market of the LSE by way of an introduction will provide the company with access to a highly liquid market and a larger pool of active investors and capital.
The investor base of the LSE has demonstrated a strong appetite for mining stocks and a deep understanding of the African operating environment.
The LSE has long been the primary listing of Randgold Resources, one of the world’s best performing gold miners. The recently announced merger of Randgold and Barrick Gold Corporation will result in the departure of Randgold from the LSE and will create a void in the London market for investors seeking exposure to gold miners.
The application for listing the company’s shares and LSE admission is not expected to affect Resolute Mining’s current ASX listing.
Change to financial year end
As part of the process of seeking a listing on the LSE, Resolute Mining has decided to change from a 30 June year end to the more conventional calendar reporting period for LSE companies of a 31 December year end for financial reporting purposes.
Resolute Mining’s African subsidiary companies are already required to produce annual accounts with a 31 December year end and LSE admission will allow Resolute Mining to synchronise the consolidation of its accounts and reporting process.
The company will have a six-month transitional financial report for the period which began on 1 July 2018 and will end on 31 December 2018; and will then commence a 12-month financial year commencing on 1 January 2019 and ending on 31 December 2019.