10/06/2010 The London Stock Exchange welcomes Ncondezi Coal Company Ltd to AIM
The London Stock Exchange today welcomed the Ncondezi Coal Company Ltd, a coal exploration and development company with assets in the Tete Province in Mozambique, Southern Africa, (ticker: NCCL), to mark the first day of trading in its shares on the Alternative Investment Market. This follows Ncondezi Coal’s IPO which included gross placing proceeds of £36m, giving the Company a market capitalisation of approximately £146.6m.
Ncondezi Coal Company Ltd holds 4 prospecting and exploration licences in the Tete Province of Western Mozambique. Following earlier exploration, the Company has defined a JORC 1.8 billion tonne coal resource at the Ncondezi Project which comprises two of its licences (804L and 805L). A scoping study completed by SRK in April 2010 confirmed the economic and technical viability of an open pittable 10 million tonne per annum export thermal coal operation. Potential also exists to increase the resources within the Ncondezi Project where there is also considered to be potential for coking coal, but this requires further work.
The Company intends to use the net proceeds of the Placing of new shares to conduct further exploration work and to fast-track a feasibility study on the Ncondezi Project, to be completed in the second half of 2012. Ncondezi enjoys a supportive government in an area known as one of the world’s last remaining undeveloped coking and thermal coal basins. Other major players in the region include Riversdale and Vale who are both expected to begin production of export coking and thermal coal products in the second half of 2011.
Commenting on the IPO, Graham Mascall, CEO, said:
“The support we have received from investors is a testament to the quality of our asset and the strength of the coal story in Mozambique. We are pleased with the result of the fundraising and look forward to continuing our relationship with investors as the Ncondezi Project develops further.”
Liberum Capital Limited is the Nominated Adviser to the Company. Liberum Capital Limited and Renaissance Capital Limited are Joint Bookrunner and Joint Broker to the Company.