China Polymetallic Mining said yesterday it plans to spend 1.55 billion yuan (HK$1.89 billion) utnil the end of next year to buy mining rights and to fund development and operating costs.
The Yunnan firm said it would weather depressed equity-market valuations to launch a share offering because of its role as a consolidator of the province's metals-mining sector.
'We are designated by the Yunnan government as a consolidator,' said chief executive Zhu Xiaolin. 'We must be listed to fund acquisitions.'
The metals miner said it would make up the difference between its planned spending and its expected HK$1 billion initial public offering (IPO) with bank loans and operating cash flows.
Hatch, an international industry consultant, ranks the company as Yunnan's largest lead and zinc miner in terms of resources. And Yunnan was second among China's provinces in both lead and zinc reserves last year, and was in third in terms of zinc preprocessed ore and fourth on lead ore, according to China Polymetallic's listing prospectus.
The firm, set up in April 2009, started production at its first mine - called Shizishan - last October. It had a net loss of 245.6 million yuan in this year's first half and has forecast a full-year loss of 246.6 million yuan.