Uzbek Gold Miner NMMC Prepares for Potential London IPO

Navoi Mining & Metallurgical Company, a major gold producer, is considering a London IPO this year, potentially valued at £4 billion. Rothschild & Co. is advising on the move, which aligns with Uzbekistan’s asset privatization strategy and aims to rejuvenate London’s IPO market. NMMC operates the vast Muruntau mine and contributes substantially to Uzbekistan’s economy.

Navoi Mining & Metallurgical Company (NMMC), recognized as one of the largest gold producers globally, is preparing for a potential initial public offering (IPO) in London this year, with a valuation anticipated to exceed £4 billion ($5.2 billion). Rothschild & Co. has been appointed as an IPO advisor on this prospect, which may occur in the latter half of the year.

Last year, NMMC successfully raised $1 billion through bonds traded on the London Stock Exchange. Citigroup Inc. and JPMorgan Chase & Co., which assisted with the bond sale, are well-positioned to be involved in the forthcoming IPO, though details remain confidential and may evolve or face delays.

The proposed IPO aligns with Uzbekistan’s broader initiative to privatize many of its state assets. For London, this IPO could revitalize its currently sluggish market, which has garnered only approximately $76 million in fundraising this year.

Historically, the UK has been a preferred venue for mining companies seeking public market funding; however, persistent low valuations have prompted some major firms, including Glencore Plc, to contemplate relocating their primary listings from London. NMMC operates the Muruntau mine, one of the largest open-pit gold mines globally, and produced 2.9 million ounces of gold in 2023. The company significantly contributes to Uzbekistan’s economy and employs over 47,000 individuals across multiple mining sites and processing facilities.

In summary, NMMC’s plans for a London IPO could greatly benefit both the company and the UK’s IPO market. As they prepare for this significant step, further developments and potential changes to the listing timeline remain to be seen. The outcome will reflect both NMMC’s prominence in the gold mining sector and the evolving landscape of public mining investments.

Original Source: www.mining.com