Global mining company MMG has received approval for a secondary listing on the ASX and expects this iniatitive to attract new investors.
MMG securities will be listed on the ASX through Chess Depository Instruments (CDI) on 14 December 2015. The company’s primary listing is on the Hong Kong Stock Exchange (HKEx).
MMG CEO, Andrew Michelmore, says that a secondary listing represents opportunities for existing MMG shareholders as well as attracting new investors.
“Australia is an attractive market for the mining and metals sector with dedicated research coverage and strong understanding of the sector by the investor community.”
“There is also a strong link with Australia given our head office and executive team and a number of operations are located here.”
The inclusion of MMG on the ASX will provide investors with exposure to a diversified mid-tier base metals company with a committed growth mandate.
“We believe that listing on the ASX will enable more investors to participate in MMG’s growth and increase the attractiveness and liquidity of our shares. This will drive benefits for all shareholders, whether they hold shares through the HKEx or ASX.
“As we approach commercial production from the world’s largest copper project in construction, Las Bambas in Peru, we think the timing is right to offer greater exposure to the MMG growth story,” Michelmore says.
Michelmore has confirmed that MMG is not seeking to raise capital in conjunction with the proposed listing.
“A secondary listing presents an additional market to raise equity in the future. While our current focus is on delivering Las Bambas, we anticipate strong cash flows from this project and we retain a growth mandate from our major shareholder China Minmetals Corporation. This provides us with significant flexibility in managing our capital – to accelerate debt payments, return surplus cashflows to shareholders or commit cash for future growth,” he concludes.