Mexican miner aims to float on London stock market

The largest primary silver miner in the world, Fresnillo, is to float on the London stock market next month in an IPO that could value the company at approximately £4 billion.

Depending on the timing of the float, the condition of the stock market and the current price of silver, Fresnillo could be in the FTSE 100 by the summer.

Fresnillo aims to list about 25% of its shares, which it said would enable it to be rated against its global peers and give it access to capital to pay down its debt and fund addition growth.

JPMorgan Cazenove is acting as sponsor and financial adviser to the company and was also the sole book runner in relation to the global offer.

Fresnillo is the largest part of Mexico City-listed miner Penoles, from which it is being de-merged.

The company, which mines veins of silver known since the times of the Spanish Conquistadors, wants to raise around $900 million. It already owns one silver mine, Fresnillo, and two gold mines, which produced around 35m ounces of silver and 280,000 ounces of gold in 2007, generating revenues of $648 million.

The news of Fresnillo’s float follows the announcement from Czech coal miner, New World Resources, who said it plans to float in London in the next few months.

In March, Kazakhstan-based iron ore and ferrochrome miner, ENRC, joined the FTSE 100 just weeks after it floated in London.

Last week saw the popularity of mining stocks return as the sector was driven by a positive note from Goldman Sachs.

Story link: Mexican miner aims to float on London stock market