Peruvian silver miner hits London - (Ex. # 2. how a miner often raise financing)
Louise Armitstead
A COMPANY that owns one of Peru’s most important silver mines is to join the Alternative Investment Market in a £110m flotation.
International Consolidated Minerals is in the midst of an investor roadshow from which it hopes to raise about £24m.
It is being co-advised by brokers KPC Peel Hunt and Ambrian Partners.
The company is currently managed by Greg Smith, an American-born veteran of the metals markets, who recently bought the silver mine from Haviland, a Canadian company then in administration.
Smith, who owns a 29% stake in ICM, looks set to collect as much as £15m from his six-month investment.
The firm has told investors there is 70m tonnes of ore in the mine, which equates to 1.25 billion ounces of ore.
The mine also contains large deposits of zinc, lead and copper as well as silver.
One analyst said: “The interesting thing about ICM is that it is coming to AIM as a producing company.
The firm claims it will be cashflow positive in 90 days.”
Although the price of precious metals is considered to be overheated, analysts are confident of getting the float away because ICM will be one of the few firms producing rather than exploring for metals.
Richard Chase, director of Ambrian, said: “This is a big project.
It will be the largest silver-producing mine quoted on AIM.
“The money raised at the listing will completely refurbish the existing mine and we fully expect to be producing large quantities of silver within five months.”
The price of silver has more than doubled since last summer, but in recent months has oscillated violently along with many other commodities.
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