Mining News article, I like that Blackrock and JP Morgan are supportive of an ASX re-listing. I am hoping that the upcoming news is something good from Lufukwe, that's got huge potential.
I think I happier lately I held on and didn't sell out earlier this year.
Cheers
Tubber
Mawson may return to ASX
Kristie Batten
Friday, 6 September 2013
CASHED-up copper producer Mawson West is considering a return to the Australian market – four years after delisting in favour of the Toronto Stock Exchange.
Bruce McFadzean
Mawson West took the unusual but ultimately successful step of leaving the Australian Securities Exchange in 2009 because it felt its exploration success wasn’t being rewarded.
The company raised $C120 million in Canada and has remained based in Perth ever since, with former Evolution Mining boss Bruce McFadzean joining the company late last year.
Speaking to MiningNews.net at Africa Down Under in Perth last week, McFadzean said the company was looking at its listing options and had recently completed an east coast road show to garner Australian interest.
“I think we suffer a bit from being Australian based, TSX-listed and in Africa, so I think we really need to look at what options we’ve got there in terms of being a pure TSX-listed company and we’re looking at that all the time,” he said.
“I think that’s the problem that we have. We’re missing the action back here.
“So although I think the guys did the right thing to go and list on the TSX, I think any options to us relisting here or somewhere else is something that we’ve got to consider.”
And importantly, with around $40 million in cash, Mawson West doesn’t need to raise funds.
“I think that’s the interesting part for us – we don’t need money,” McFadzean said.
“So, whatever we do, if we go down that route, we don’t need to raise cash.”
McFadzean said it was unlikely Mawson West would list on London’s AIM.
“There is a big Africa link but I think if you’re AIM-listed you need to be based there,” he said.
“It makes more sense to do an ASX listing.”
McFadzean said Australian and Asian attitudes towards the Democratic Republic of Congo, where the company’s projects are, had changed.
“But now you’ve got Tiger [Resources], you’ve got [Robert] Friedland[‘s Ivanhoe Mines], Lundin [Mining], MMG – so you’ve got all these companies that are now in there and investing a lot of money and I think that there’s a different view in Asia – certainly in Hong Kong and Singapore, they’re not as risk averse to the DRC anymore,” he said.
MMG is also a major shareholder with 12%, with Pacific Road holding 11%, JP Morgan with 10% and Black Rock with 8%.
McFadzean said he had spoken with JP and Black Rock over the past week and both were highly supportive.
“Black Rock’s comments were ‘Bruce, don’t even worry about the share price, you’re one of the only companies that has delivered this year – keep doing that and everything will follow’ – and we’ve had that general feedback from everyone,” he said.
Mawson West recently completed mining the Dikulushi open pit and is processing the stockpiles ahead of the commissioning of the underground.
The company’s second DRC mine, Kapulo, will begin commissioning in the first quarter of 2014.
“We have pushed that back a bit but really because we just wanted to maintain a strong balance sheet,” McFadzean said.
“We’ve just elected to slow it down a little bit but keep that healthy buffer.
“A lot of investors, if they had a fear, it was a fear of us getting to a dip in our cash so we said ‘no, hang on, we’ll delay it a little bit’ to keep that cash buffer there and bring it on just a tad later.
“And it doesn’t really impact the business at all but I think from an investor’s viewpoint it changes the risk profile somewhat.”
McFadzean believes the company has been under the radar.
“It’s a little bit exciting and I think we’re probably in the investor’s eyes – people are just starting to raise their eyebrows,” he said.
And after being quiet for the past couple of quarters, McFadzean expects the rest of the year to be busy for Mawson West.
“I think this will be the watershed few months for us,” he said.
“We’ll be out on the road in October, we’ve got a bit of news coming out in the next few months, which should put us back on the radar.
“And I think with two or three good quarters behind us and people will say ‘how did that happen?’ – I think we’ll have a different reputation.”
Mawson West shares last traded at 44.5c in Toronto.
MWE
mawson west ltd
