Congo miner Central Copper Resources announces plans to list in London
Central Copper Resources (CCR), which mines in Congo and Zambia, is gearing up to launch on the London Stock Exchange as copper prices lost ground.
CCR is finalising the documentation and procedures for
admission into the exchange's AIM, the market for small and medium size growth
companies.
It plans to use the money raised from the IPO to “advance
the high grade Mbamba Kilenda copper project in the Congo towards production
and to continue high impact exploration” at its Titan project in the Congo and
the Lunga project in Zambia.
The funds will go towards direct exploration and evaluation
work programmes.
“We believe that we are listing on AIM at a good time in the
project life cycles of the portfolio and given the recent performance of the
copper price,” said CEO Kevin van Wouw.
Copper prices reached an all-time high in May as commodities
markets soared as hopes of a global economic recovery creates demand for raw
materials.
But recently they have been slipping, falling again on
Wednesday amid concerns Chinese industrial demand is slowing and as investors
wait for clarification from US central bank officials on rate policy, after
data showed rising inflation.
‘’Central Copper Resources is well placed to capitalise on
the strong demand for copper forecast as the combustion engine is phased out
and the adoption of electric vehicles accelerates,” Susannah Streeter, senior
investment and markets analyst, Hargreaves Lansdown told Yahoo Finance UK.
“Quality copper ore is considered to be in relatively short
supply so if the exploration is successful the company would stand to benefit
from new mines coming online,” she said
But she warned about the risks of falling prices, and said
investors should also be aware "that mining is highly capital intensive
and this company does not offer anywhere near the same level of diversification
as mining giants such as Glencore (GLEN.L) and Anglo American (AAL.L)."
Meanwhile, London has become home to a number of initial
public offerings this year as the City seeks to attract more listings from
innovative companies.
A boom in firms listing on the London Stock Exchange powered
it to the best first quarter for listings in 15 years.
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