JOHANNESBURG – Mozambican coal company Ncondezi on Thursday successfully listed on the Aim, starting out with a market capitalisation of £146,6-million.
The company had placed just under 29-million shares at £1,23 a share to raise about £35,6-million, which it was planning to use for the further development of its Ncondezi project, in the Tete province of western Mozambique.
The company¡¯s share price rose to a high of £1,31 a share during early morning trade.
¡°We are delighted that the company's shares commenced trading on Aim. The company's main objective is to upgrade and extend the existing [Joint Ore Reserve Committee- (Jorc-) compliant] resource and to complete a fast-track bankable feasibility study (BFS) on the Ncondezi project,¡± CEO Graham Mascall commented in a statement.
The Ncondezi project, which comprised two of the four prospecting and exploration licences held by the company, was expected to produce ten-million tons a year of export quality thermal coal as from the second half of 2014.
The proposed openpit mine, which had a Jorc-compliant resource of 1,8-billion tons of coal, had an estimated 37-year mine life.
The company was hoping to fast-track the BFS for the project, which it expected to be completed by the second half of 2012.
It would also undertake further exploration work to upgrade the project¡¯s existing resource, as well as to assess the potential of coking coal production.