The Hong Kong-listed company today received approval for a secondary listing in Australia.

MMG CEO Andrew Michelmore said the listing would benefit existing shareholders, as well as attract 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,” he said.

“There is a strong link with Australia given our head office and executive team and a number of operations are located here.”

MMG has five operations, three of which are in Australia, as well as the massive Las Bambas development project in Peru, which is approaching first copper production, and the approved Dugald River zinc project in Queensland.

“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,” Michelmore said.

“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. 

“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.”

MMG will not be raising funds as part of the listing.

“A secondary listing presents an additional market to raise equity in the future,” Michelmore said. 

“While our current focus is on delivering Las Bambas, we anticipate strong cashflows 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.”

Minmetals owns 73.7% of MMG currently.

MMG has a market capitalisation of around $A1.3 billion in Hong Kong, making it a similar size to fellow base metal producers Independence Group and OZ Minerals.

Coincidentally, MMG was created out of OZ’s misfortunes.

In 2008, OZ – newly formed after a merger between Oxiana and Zinifex and led by Michelmore – ran into debt troubles as the global financial crisis hit.

The solution was to sell all of its assets, except for the Prominent Hill mine, to newly created MMG (Metals and Mining Group) for $US1.2 billion.

Michelmore left OZ to front the new Chinese-backed outfit and the rest, as they say, is history.

 

The company’s Chess depositary interests will list on the ASX on December 14 under the ticker MMG.