Ncondezi makes AIM debut
Southern Africa-focused coal explorer Ncondezi Coal debuted on AIM this morning with a £146 million tag, having raised £35.6 million at 123p.
Ncondezi, a British Islands-registered concern that holds four exploration and prospecting licenses in the Tete province of Western Mozambique, plans to use the proceeds to conduct further exploration work before beginning to produce coal in the second half of 2014.
The company is headed by CEO Graham Mascall, previously chief executive of M&A, base metals and new business at mining behemoth BHP Billiton and erstwhile CEO of Ukrainian coal miner Lubel. Delighted with the initial market response to the story, Mascall insists ‘the Ncondezi Project presents an exciting opportunity to develop a new coal mine in one of the world's largest underdeveloped coal regions’.
Investors clearly share his excitement, having chased the shares higher to 131.5p today, where they now value the business at almost £157 million.