KazakhGold floated in London 25% shares
01.12.05 22:09
/INTERFAX-KAZAKHSTAN, Almaty, December 1, 05/ - Company KazakhGold
(mother company of Mining-metallurgical concern Kazakhaltyn) made in London
first public floatation (IPO) of 25% shares through global depositary receipts
(GDR), representative of Kazakhaltyn management informed agency Interfax-
Kazakhstan.
According to his information, demand for securities of KazakhGold within IPO
exceeded $1 bn. Other details of the deal the agency's interlocutor refused to
inform, also did not call volume of earned funds through floatation.
Meanwhile earlier it was informed, that KazakhGold intended to attract from
floatation of GDR $176 m., having fixed price at the level $15 per security.
Decision instead of shares to float among investors GDR, issued for these
shares, was taken by KazakhGold by recommendation of company ING -
leading manager of IPO of Kazakhstan company. One more manager of IPO is
Russian Troika Dialogue. Number of GDR, offered for floatation, calculated 11.7
m. shares, which included 7.1 m. again issued common shares and 4.6 m.
existing common shares. However GDR is equivalent of one common share.
Meanwhile in its message, received by agency Interfax-Kazakhstan on
Thursday, KazakhGold announced about inclusion of GDR in the official listing of
British securities register and about admission to the trades on London stock
exchange.
As the message notes, since that time "official registration of deals on
securities of KazakhGold on unlimited terms will start" under code "KZG" on London
stock exchange.
As it was informed, attracted from floatation funds the company intends to spend
for redemption of borrowed funds and for expansion of extractive and processing
capacities.
As it is known, Kazakhaltyn within modernization of production this year
completed realization of four big projects.
So, this year two gold extractive factories (GEF) were put into operation: Aksu
with productivity capacity 1 m. tons of ore a year and Zholymbet with productivity
520 th. tons of ore a year. It is planned to produce on GEF Aksu in a year 1.5
tons of gold as alloy Dore, on GEF Zholymbet - 1.7 tons. Besides, two
complexes of gold heap leaching (CHL) were put into production operation on
mines Aksu with productivity 500 th. tons of ore a year and Bestobe with
productivity 1 m. tons a year.
The company started realization of these projects last year. Funds for their
financing in the amount over $35 m. Kazakhaltyn attracted by issue of bonds and
owing to credits of Kazakhstan commercial banks.
These projects, the company announced, will allow it to go from sales of
production with low liquidity - float-concentrate, where content of gold is 30-90
g/tone. Besides, these new projects will allow to process accumulated within ten
years wastes of gold extractive factories (tales of floatation), where gold
content is 1-1.2 g/tone, and also to get ligature gold as alloy Dore.
Meanwhile in 2006 году Kazakhaltyn intends to realize two more projects: to
build GEF on mine Bestobe and CHL on mine Zholymbet. Details of these
projects the company while does not reveal, it is planned to start them in nearest
time.
With realization of four first above projects total volume of output of gold
containing production in 2005 is expected in the volume 2.8 tons, and in 2006
taking into account operation of two more above projects - 8.5 tons.
[2005-12-01]