ernst & young mining eye q3 2012
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Ernst & Young’s Mining Eye index monitors the performance of AIM mining companies on a weekly basis and can be viewed at www.ey.com/uk/miningeye. Movements and analysis of the index are reported in this quarterly publication.
Ernst & Young also produces a similar index for the oil and gas sector, which can be viewed at www.ey.com/uk/oilandgaseye.
To receive copies of the Mining Eye, please contact Olivia Russell on +44 (0)20 7951 5559 or email orussell@uk.ey.com. To receive copies of the Oil and Gas Eye, please contact Rebecca Hanifin on +44 (0)20 7951 6682 or email rhanifin@uk.ey.com.
Area Contact:
Lee DownhamGlobal Mining & Metals Transactions LeaderErnst & Young, UKI+44 (0)207 951 2178downham@uk.ey.com
The Mining Eye is written by:
Emily Colborne +44 (0)121 535 2086 ecolborne@uk.ey.com
Mining EyeQ3 2012
Q3 2012: the funding challenge ► ►TheMiningEyeindexfell3%overQ32012—anencouraginglyflatperformancecomparedwiththedramatic30%fallsinceJanuary2012.StrengtheningmetalspricesandsignsofimprovedgrowthinNorthAmericaandChinaprovidedsomesupport,althoughtheminingsectorcontinuestounderperformthewiderAIMmarket.
► ►However,financingconditionsonequitymarketsremainchallengingforjuniorsminers,withquarterlyequityproceedsraisedbythesectoronAIMattheirlowestsinceQ32004(at£84m).Riskaversionamonginvestorsisbeingmetwithreluctancefromcompaniestofurtherdiluteholdingsofexistingshareholdersatcurrentshareprices.
► ►Q32012sawtheearlysignsofdistressthatbecamewidespreadintheaftermathofthe2008financialcrisis,withasmallbutsymptomaticnumberofcompaniesreportingdistressedassetdisposals,strategicreviewsandlast-resortfinancing.
► ►Butcreativecostandcapitalmanagementissofarhelpingtosustainthemajoritythroughtheseturbulenttimes—cost-cutting,non-coreassetsales,fast-trackedcashgenerationoptions,andtheattractionofstrategic,long-terminvestmentpartners.
Mines & Money 2012TheErnst&YoungMining&Metalsgroup isaproudsponsorofMinesandMoneyLondon.ComeandmeetErnst&Young’sMiningteam on4–5DecemberattheBusinessDesignCentre,Islington,Londontohearaboutourlatestinsightsin the sector.
2 Ernst & Young Mining & Metals MiningEyeQ32012
Mining Eye FTSE AIM All-Share (rebased)
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Chart 1. Mining Eye index and FTSE AIM All-Share index performance over Q3 2012Source:Ernst&Young,ThomsonDatastream
Chart 3. Mining Eye index and FTSE AIM All-Share index performance, last 12 monthsSource:Ernst&Young,ThomsonDatastream
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Chart 2. Mining Eye index and peers over Q3 2012Source:Ernst&Young,ThomsonDatastream
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Chart 4. Mining Eye index and peers, last 12 monthsSource:Ernst&Young,ThomsonDatastream
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Q3 2012 Mining Eye in review
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1Seepage8fordetailsofothernewadmissionsinQ32012.
Companyinformationsourcedthroughoutfrompubliclyavailablesources,includingcompanywebsitesandregulatoryannouncements.
TheErnst&YoungMiningEyeindexlost3%overQ32012— afallthatcomparesfavourablywiththe28%fallseenoverthefirsthalfoftheyear.Nevertheless,thiswasstillasignificantunderperformanceofthe3%gainbytheAIMAll-Shareindex. Apositiveupwardmovementincommoditypriceshelpedtomitigatetheseverityofthefall,theLMEXindexgaining10% andgold11%.ThemajorsfaredalittlebetterwiththeFTSE Miningindexgainingamodest2%overthequarter.
Theupwardmomentumincommodityprices,whileprovidingsomesupport,hasnotbeenfullyreflectedinequityprices.Thiscontinuingdisconnectisleadingcompaniestoconsiderthemselvessignificantlyundervaluedbythemarket.Themarketvaluesofnearlytwo-thirdsofAIMminersweretradingatover30%belowtheir52-weekhighsattheendofQ32012.
Despiteatentativerecoveryinpricestowardstheendofthequarter,financingconditionsonglobalequitymarketsare provingcontinuallychallenging,givinglittlegroundsforanycertaintyovertheshort-termoutlook.Globally,IPOvolumes inthesectorhaveretreatedto2009levels,withaverageproceedsraisedbyjuniorIPOsjustUS$3.3m.OnAIM,therewasonlyoneminingIPO(WishboneGold)inthethirdquarter,takingtheninemonthtotaltojustfourIPOs.1Globalequityproceedsfromsecondaryofferingsofequitybyjuniorminershavefallen41% year-on-year,indicatingtheextentofnegativeinvestorsentimentandtheexpensivefinancingoptionthatequityhasbecome.OnAIM,proceedsfellto£81mby34companiesinQ32012,from£96mby31companiesinQ22012,and£114mby18companiesinthesameperiodayearago.
Thefundingchallengeiscompoundedinanenvironmentofhighandincreasingoperatingcosts,weaknessincertaincommodities,andunforeseenoperationalchallenges,whichcanquicklyanddramaticallyimpactshort-termworkingcapital.Thetighteningavailabilityofequity(andabsenceofavailabledebt)reducesfinancialheadroomandimpactscompanies’abilitytoswiftlyaddressunexpectedcashflowshortfallsorcapitaloutlays.WehaveseenthematerialimpactoftheseconditionsonasmallbutnonethelesssignificantnumberofAIMminersthisquarterintheformofdistressedassetdisposals;high-cost,last-resortfinancing(suchassharesubscriptionagreements);operationsbeingplacedoncareandmaintenance;andstrategicreviews.
FluorminannouncedastrategicreviewofitsflagshipWitkopfluorsparmine,resultingintheminebeingplacedintocareandmaintenanceduetoongoingweaknessinthefluorsparmarket. ThedirectorsofNorseman Gold,whichisdevelopingtheNorsemangoldmineinWesternAustralia,placeditsoperatingsubsidiaryintovoluntaryadministration.Aseriesofoperationalchallengesattheminemeantthatproductionfellshortofexpectations,criticallyimpactingshorttermcashflow.Noventaarrangedarefinancingpackagedescribedasits“onlyrealisticoption”tostaveoffinsolvencyandinordertoproceedwiththedevelopmentofitsprojectsinMozambique.TheinitialproposedunsecuredUS$16mfacilityandlonger-termsecuredfacilityofuptoUS$35mcarried apunitiveannualinterestrateof25%.
Chart 5. Share price movement over Q3 2012 by commodity groupSource:Ernst&Young,ThomsonDatastream
Technology minerals
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Diamonds and precious stones
Base metals
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2ResultsofExtraordinaryGeneralMeeting,KiboMiningregulatorynewsrelease,6September2012.
Mitigating risk and optimizing capitalDespiteconstrainedaccesstocapital,weareseeingajuniorindustryin2012thatissmarter and leaner than it was in 2008–09. Juniorsarerespondingcreativelyandopportunistically,pursuinggrowththroughsuccessfulattractionofalternativefunding;mitigatingriskbybuildinginoptions;andoptimizingcapitalbyfocusinglimitedresourcesoncoreassets.InQ32012, wesawexamplesof:
► ►Non-coreassetdisposals
► ►Alternativerevenuestreams
► ►Synergisticacquisitions
► ►Farm-outagreements
► ►Strategicpartnersandalternativefundingstructures
Non-core asset disposals
Anumberofcompaniesannounced(non-distressed)disposalofnon-coreassetsinordertoraisecashandfocuslimitedresourcesandmanagementattentiononassetscentraltothecorestrategy.
Forexample,Central Asia Metals announcedanagreementtodisposeofitsEreenandHandgaitMongolianassetstoMongolianResourceCorporation,allowingthecompanytofocusonproductionatitsSX-EWKounradcopperplantinKazakhstan
anditscopper-golddrillingcampaigninMongolia.Pan African Resources announcedplanstodisposeofitsManicagoldexplorationprojecttoTerranovaMineralsforapotentialconsiderationof£4mcashandsharesintheenlargedTerranova.ThedisposalwillallowPanAfricantofocusonitscoreoperatingassetsinSouthAfrica,whilemaintainingpotentialupsidebenefitfromManica’sdevelopment,andraisecashfortheconstructionanddevelopmentofitsBramberTailingsRetreatmentproject.
Alternative revenue streams
Sometookadvantageofopportunitiestogenerateinterimcashflowfromsupplementaryassetstofundtheadvancementofcoreassetstowardproduction.Jubilee Platinum, which holds a51%interestinpowergenerationcompany,PowerAlt,receivedapprovalfromtheNationalEnergyRegulatorofSouthAfricatosellsurpluselectricitytoathirdparty,adealexpectedtoincreaseearningspotentialandprofitability.
Synergistic acquisitions
Wesawexamplesofcompaniesinvestingforsustainable,synergisticandnear-termgrowththroughsmall-scaleacquisitions.
Kibo MiningannouncedthereversetakeoverofMzuriEnergyandMaybornResourceInvestments,whichholdcoalanduraniumexplorationprojectsinTanzania
tocomplementKibo’sexistingactivitiesinTanzania.Kibobelievesitwillbenefitfromeconomiesofscaleandthe“optimization ofoperationalcapacityontheground”2.
CoalcompanyAltona EnergycompleteditsacquisitionofadvancedexplorationlicencesinChina—describedas“transformational”,withthepotentialfornear-term,sustainablecashflow.Targetingproductionin2013,Altonasaidtheacquiredassetswouldmitigatetheneedtoraiseadditionalequityasitcontinuesthelonger-termdevelopmentofitscoal-to-liquidArckaringaproject.ThecompanyalsocitedthebenefitofaccesstoChinesedemand,raisingthepossibilityofaHongKongcross-listing.
Farm-out agreements
Farm-outsinvolvetheassignment ofaninterestinmineralprojectstoa third-party.Itprovidesthe“farmor”withtheoptionofmaintaininginterestandownershipwhilereducingoperatingrisksandcosts—potentiallyenablingthecompanytooverseethedevelopmentofaprojectthatitwouldnototherwisehavethecashtodevelop.African Consolidated Resources(ACR)announcedthatGalileoResourceswouldbefarmingintoitsrareearthsjointventure,theNkombwaHillRareEarthproject,innorth-eastZambia.ACRwelcomedGalileo’stechnicalrareearthsexpertiseandmanagementtrackrecordatfasttrackingexplorationprojects.Jubilee Platinumenteredintoanagreementfor
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OutlookTheoutlookforequitymarketsremainsuncertainandunpredictable,withtheapparentdisconnectbetweenassetpricesandcommodityvaluationsshowinglittlesignofabatement.Asaresult,expectthatmanyshareholderswillcontinuetoviewequityasanexpensiveanddilutiveoptionoflastresortatcurrentvaluations.Forthoseinapositionofchoice,alternativefunding,particularlydebt,islikelytobesought,potentiallyfromnon-traditionalsources,untilequitymarketconditionsconsistentlyshowimprovement.
Themajorproducersarerespondingtothechangingindustryconditionswithashiftinpriorities:from“growthforgrowth’ssake”toafocusoncostcontrol,creditqualityanddisciplinedgrowththatoptimizesshort-termreturnstoshareholders.Thisisshapingmergersandacquisitionsactivityin2012.Ourexpectationisthatoneoftheconsequenceswillbeafocuson“lower-risk”,strategicminorityfootholdacquisitionsandthatthismayopenupfurther,long-termfundingoptionstothejuniorsector.Wealsoexpecttoseeacontinuedflowofcapital(bothdebtandequity)fromAsianandMiddleEasterninvestors,andalsopotentiallyprivatecapital,intoadvancedexplorationprojects.Competitionforsuchlong-terminvestmentwillbeintense.
Earlystagejuniorsarefacedwithfeweroptionsandweexpecttoseecompaniesraisingcapitalwherevertheycan—atsomerisk tofinancialflexibilityandcontroloverprojects.Costcontainmentandtheallocationofmanagementandfinancialresourcestowardscoreprojectsmustremainthepriority.Thesearechallengingtimes,withclearimplicationsforthelonger-termexplorationpipeline.
IndianPacificResourcestoearnuptoa90%interestinallcommoditiesexceptPGMs,LME-tradedmetalsandchromeonJubilee’sAmbodilafatenementareainMadagascar.TheagreementwillgiveJubileepotentialexposuretoironorewithnoinitialfundingonitspart.
Strategic partners and alternative funding structures
Strategicinvestors,particularlyprivatewealthintheformofChinesestate-ownedenterprisesandJapanesetradinghouses,continuetotakeinterestinthejuniorresourcessectorintheirquestforsecurityofsupply.Lessinfluencedbyshort-termmarketsentiment,suchinvestorscan
proveinvaluablecornerstoneinvestorsthroughouttheprojectdevelopment cycle—butinvariablywithtermsandconditions attached.
Amara Mining(previouslyCluffGold)announcedtheformationofastrategicalliancewithSamsungC&TCorp,commencingwithaUS$20munhedgedofftakedebtfacility.Amarahasoneproducingmine,theKalsakagoldmineinBurkinaFaso,andanumberofdevelopmentstageassets.ThepartnershipwillseeSamsunggainaccesstogoldbullionsupplyinreturnforprovisionoffinancialsupporttoAmara—particularforthedevelopmentoftheBaomahunprojectinSierraLeone.
Hummingbird Resources announced that itisindiscussionswiththeInternationalFinanceCorpoverapossibleUS$5mstrategicequityinvestment.Thecompany’sCEOdescribedthepossibleinvestmentasasignificantendorsementoftheviabilityofitsDugbe1ironoreprojectinLiberia,aswellasadoor-openertopotentialfuturedebtfinancing.
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Winners in Q3 2012
► Condor Goldsawthelargestincreaseinitssharepricethisquarter,gaining208%followingaseriesofpositivedrillingresourcesatits100%-ownedLaIndiagoldprojectinNicaragua.InSeptember,thecompanyannouncedanupgradedmineralresourceof16.2mtat4.6g/tfor2,375,000ozgold,including5.3mtat4.4g/tfor751,000ozgoldintheIndicatedcategory (toCIM3standards).Subsequenttoquarter-end,Condorannouncedthestrategicacquisitionoftheadjacent LaMojarraconcessionwhichthecompanybelievestheLaIndiaresourcemayextendinto.
► Sunrise Resources’sharepricegained112%overthethirdquarter.Theearly-stageexplorationcompanyhasstarteddrillingonitsCuediamondandDerryginaghbariteprojects,inAustraliaandIreland,respectively.Theresultsofthedrillinghadyettobeconfirmedatquarter-end,butinvestorsappearedtowelcomethecompany’s
renewedstrategicfocus,followingitsdecisiontoabandonitsoptionontheLongLakegoldpropertyinCanada.
► Botswana Diamonds announced the recoveryoffirstdiamondsfromitssamplingprojectinCameroon.While ofindustrialquality,thegemsconfirmthediamondiferouspotentialofthedeposit.Nextstepsforthecompanyaretoundertakebulksamplingtoidentifygradepertonneandvaluepercarat,alongsideascopingstudytoexploretheproject’sfeasibility.ThecompanyisalsoprogressingexplorationonitsOrapaprospectinBotswana.Itssharepricegained56%overQ32012.
► Amongthelarger-capcompanies, Sirius Mineralsgained45%withaseriesofpositivedrillingupdatesonitsYorkPotashprojectintheUK.ThisfollowstheannouncementofitsmaidenresourceinJune,inwhichthecompanyreported“theworld’slargestandhighestgraderesource”
ofpolyhalite,amulti-productpotashore.Drillingisnowunderwaytofurtherdelineate the resource in order to securefinancingfortheproject,whilethecompanyalsolaunchestheplanningapplicationprocess.
► African Consolidated Resources announcedasignificantupgrade toitsresourceestimateatitsPickstone-PeerlessgoldprojectinZimbabwe. Thecompanyreportedanincrease to36.63mtcontaining3.2mouncesofgoldatagradeof2.7g/tgold,ofwhichover50%isintheMeasuredandIndicatedcategory(JORC-compliant).AfricanConsolidatedResourcesisinitiatingabankablefeasibilitystudy,targetingproductionofover100,000ouncesperyear—whichthecompanysays would be more than double the outputofZimbabwe’sexistinglargestmine.ACR’ssharepriceclosedthequarterup17%.
3CanadianInstituteofMining,MetallurgyandPetroleum(CIM)StandardsonMineralResourcesandMineralReserves.
Chart 6. Mining Eye index and FTSE AIM All Share index since 2004Source:Ernst&Young,ThomsonDatastream
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► Ironveld sufferedadisappointingperformancefollowingitsplacingandreadmissiontoAIMinAugust,witha65%fallovertheperiod.Thecompany,previouslyMercuryRecyclingGroup,acquiredtheSouthAfricanironoreassetsofSylvaniaPlatinumandintendstomineTi-magnetiteoreasfeedstockforitsownpigironplant.Thecompanyhasretaineditslamprecyclingbusinesses,whichsufferedlossesinthefirsthalfoftheyear.
► Coal of Africa’ssharepricesuffered asignificantfalloverthequarter(59%),againstabackdropofaweakthermalcoalmarket.Thecompanyclosedthequarterwithamarketvalueofjust£116m,from£246mayearago,astheglobalthermalcoalpricefell31%overthesameperiod.Strikeactionatthecompany’sSouthAfrican
Mooiplaatscolliery,andthewithdrawalofBEEpartnerExxaroCoalProprietaryfromitsrighttoa30%participationintheMakhadocoalproject,negativelyimpactedsharepriceperformance.Postquarter-end,aproposedstrategicpartnershipwith,andUS$100mequityinvestmentby,HaohuaEnergyInternational(HongKong)helpedsharestoabriefrecovery.
► Galantas Goldlost46%overthethirdquarter,despitepositiveresultsfrom apreliminaryeconomicassessmentonitsOmaghgoldpropertyinNorthernIreland.Problemsregardingplanningconsenthaveledthecompanytoannounceareductioninitsworkforce.
► DisputeswithhostgovernmentsaffectedbothCopperDevelopmentCorpandRichlandResourcesinthe
quarter.Copper Development Corp remainssubjecttoanongoingdisputewiththePhilippinesGovernmentovertheBasayexplorationpermit,causingsharestofall45%overQ32012.Richland Resources’ sharepricealsolost45%,followingreportsofongoingillegalminingactivitiesatitsTanzaniangemstoneproperties,andthelikelynegativeimpactofthisonthecompany’sinterimfinancialresults.Thecompany’ssharesweretemporarilysuspendedinearlyOctober,followingaclaimforretrospectiveroyaltiesfromtheTanzanianGovernmentandaprovisionalbanongemstoneexports.Richlanddisputestheclaim,andexportrightswerereinstatedonaninterimbasis,pendingare-auditofthefinancialrecords.
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Chart 7. Mining Eye index, gold, copper and LME Index over Q3 2012Source:Ernst&Young,ThomsonDatastream
Ins and outs of the AIM mining universe
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FivecompaniesjoinedAIMthisquarter,onethroughIPO,andtherestviaintroductionsandmarkettransfers.ThesizeofourAIMuniverseofminingandmining-relatedcompaniesstands170strongattheendofQ32012.Thetotalvalueoftheuniversewas£8.6batquarter-end,representingaslightincrease(2%)inquarter-on-quartervalue.
Admissions
► Wishbone Goldwasthequarter’sonlyIPO,raising£0.5minaJulylistingonAIM.Thecompany,whichhastwogoldconcessionsinAustralia,isheadedbyex-SiriusMineralsCEORichardPouldenandaimstoconsolidate“viable”goldprojectstobecomeaglobally-diversifiedpreciousmetalscompany.
► ►IronveldwasadmittedtoAIMinAugust,followingthereversetakeoverofironoreassetsinSouthAfricabyAIM-listedMercuryRecyclingGroup.Ironveldownsavertically-integratedpigironprojectinSouthAfrica’sBushveldcomplex,targetingminingof2.4mtonsmagnetiteperannumtofeeda1,000,000tpapigironplant,withpotentialforvanadiumandtitaniumby-products.
► Black Mountain ResourcesjoinedAIMviaanintroduction,raisingnonewfunds.Thecompany,whichhasaprimarylistingontheAustralianSecuritiesExchange,isexploringforsilverintheUS,withfirstproductiontargetedforQ42012.BlackMountainundertookthesecondarylistingonAIMin order to broaden its international investorbase.
► ►Namakwa DiamondslistedonAIMfollowingthecancellationofitslistingonLondon’sOfficialList(theMainMarket)duetoitsinabilitytomeetfree-floatrequirements.NamakwahasdiamondoperationsinLesotho,SouthAfricaandNamibia.Thecompany’smarketvalueatquarter-endwas£38m.
► ►Praetorian Resources,aninvestmentcompanyfocusedontheresourcessector,alsolistedonAIM,raising£20m.CurrentcoreinvestmentsincludeA-CapResources,Ampella
Changes to the Mining Eye indexInthisedition’squarterlyindexreview,therewerejusttwoindexconstituentchanges.EMEDMiningreplacedBellzoneMining,followingarelativelystrongsharepriceperformancebyEMEDasitadvancestowardsproductionatitsflagshipRioTintoCoppermine.BellzoneMiningdroppedjustoutsidetheindexfollowingthedisappointingperformanceofitssharepriceoverthequarter.
Mining,Ausgold,AustralasianResources,GalileoResourcesandSovereignMinesofAfrica.
Readmissions
► ►Kibo MiningwasreadmittedtoAIMfollowingthereversetakeoversofMzuriEnergyandMaybornResourceInvestments,addingcoalanduraniumexplorationassetstothecompany’sexistingTanzanianportfolio.
► Touchstone Gold was readmitted toAIMfollowingitsre-domiciliationfromtheBritishVirginIslandstotheProvinceofOntario,Canada.
Chart 9. AIM mining admissions and delistings since 2006Source:Ernst&YounganalysisofAIMmarketstatistics;includesplacings,introductionsandreadmissions;excludestransferstoandfromtheMainMarket
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Chart 8. Value of AIM mining universe and as % of all AIM, 2004–2012Source:Ernst&YounganalysisofAIMmarketstatistics;marketvaluesasatquarter-end
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Fundraising in Q3 2012
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Withjust£4mraisedfromnewequityissuesinQ32012,and£81mfrom34follow onissues,totalproceedsraisedbytheAIM-listedminingsectorfelltotheirlowestquarterlyamountsinceQ32004.Thisequatedtoaquarter-on-quarterfallof12%,andyear-on-yearfallof37%.TheslowdowninIPOsandequityfinancingwasreflectedacrossthemarket,withAIMtotalproceedssufferingaquarterlyfallof22%.Miningsectorfundraisingaccountedfor15%oftotalproceedsraisedacrossthemarket (Q22012:13%).Thelargestissuesareoutlined below:
► ►Nautilus Mineralsraised£21mviaaprivateplacementthatincludedparticipationbyexistingshareholders
MBHoldings(throughMawaridOffshoreMining),MetalloinvestandAngloAmerican.Theproceedswillbeusedtocontinuebuildingthecompany’sSeafloorProductionSystemasitawaitsresolutionofitsdisputewiththePapuaNewGuineanGovernment.Followingtheplacement,MetalloinvestmaintaineditsholdinginNautilusat21%,AngloAmericanheld11.1%andMawaridincreasedto16.9%.
► ►Coal of Africaraisedatotalof£28.9mviatheissueofshareswithinstitutionalinvestors,atadiscountof1.96%tothereferenceprice.Theboardnotedthesupportofitsshareholders,particularlyinlightofthechallengingmarket
conditions in the world coal market. UseofproceedsincludesdevelopmentattheVelecollieryandpart-payment ofacquisitioncostsforChapudi.
► ►Baobab Resourcesraised£4mthroughanequitysubscriptionagreementwithRedbirdInvestments.RedbirdisaninvestmentvehicleoftheAfricanMineralsExploration&DevelopmentSICARSCAfund,arecentlylaunchedLuxembourg-basedfundthatisactivelyinvestinginbrownfieldmineralprojects,predominantlyinAfrica.Proceedswillbeusedforcompletionofthepre-feasibilitystudyontheTeteironoreprojectandongoingworkingcapital.
Chart 10. Quarterly trend of funds raised on AIM — mining and all sectorsSource:Ernst&YounganalysisofAIMmarketstatistics
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2006
Q3
2006
Q4
2006
Q1
2007
Q2
2007
Q3
2007
Q4
2007
Q1
2008
Q2
2008
Q3
2008
Q4
2008
Q1
2009
Q2
2009
Q3
2009
Q4
2009
Q1
2010
Q2
2010
Q3
2010
Q4
2010
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q2
2012
Q3
2012
AIM
total fund raised GB£mA
IM fu
nds
rais
ed G
B£m
1WhereAIMistheprimarymarketoflistingforthecompany’sfirstpublicissueofshares(doesnotincludesecondarylistings). 2Includesintroductions,secondarylistings,transfersandreadmissions(moneyraisingandnon-moneyraising). 3Fundsraisedfromfollowonissuesofshares.
Fundraising on AIM, 2006–2012 Source:Ernst&YounganalysisofAIMmarketstatistics
Table 1. Fundraising on AIM, 2006–2012
Mining AIMMining as % of all AIM
New issues Further issues3 Total issues New issues Further
issuesTotal
issuesTotal
proceedsNo.ofIPOs1
No.ofothernew issues2
Proceeds£m No.ofmoneyraisingissues
Proceeds£m Proceeds£m Proceeds£m Proceeds£m Proceeds£m %
Q3 2012 1 5 4 34 81 84 243 317 560 15%
Q22012 0 0 0 31 96 96 155 559 714 13%
Q12012 3 2 22 44 228 251 51 870 921 27%
Q42011 0 1 0 34 154 154 77 759 836 18%
Q32011 4 4 20 18 114 134 271 414 685 20%
Q22011 4 1 26 48 266 292 182 954 1,136 26%
Q12011 0 4 1 46 634 635 77 1,564 1,641 39%
Q42010 7 2 153 60 845 998 541 2,532 3,073 32%
Q32010 1 5 43 38 57 100 291 854 1,144 9%
Q22010 4 2 88 47 622 710 145 1,404 1,549 46%
Q12010 1 2 7 32 189 196 242 694 936 21%
2011 8 10 47 146 1,169 1,215 608 3,690 4,298 28%
2010 10 14 291 180 1,714 2,005 1,219 5,484 6,703 30%
2009 0 4 1 195 1,029 1,030 741 4,696 5,436 19%
2008 3 4 77 148 1,003 1,080 1,079 3,215 4,294 25%
2007 9 16 148 185 2,302 2,450 6,829 9,610 16,439 15%
2006 28 31 618 123 1,081 1,699 9,909 5,734 15,643 11%
10 Ernst & Young Mining & Metals MiningEyeQ32012
Index constituents selected at start of each quarter Source:Ernst&Young;ThomsonDatastream
Q22012 MV(£m) Q32012 MV(£m) Q42012 MV(£m)
AfricanMinerals 1,825 AfricanMinerals 1,047 AfricanMinerals 984
KalahariMinerals 651 KirklandLakeGold 488 KirklandLakeGold 509
KirklandLakeGold 626 HighlandGoldMining 344 SierraRutile 391
HighlandGoldMining 430 SierraRutile 326 HighlandGoldMining 376
CoALofAfrica 407 ArchipelagoResources 293 ArchipelagoResources 345
LondonMining 390 LondonMining 270 SiriusMinerals 301
ArchipelagoResources 372 CoALofAfrica 250 PanAfricanResources 261
NautilusMinerals 330 PanAfricanResources 224 PatagoniaGold 234
ZanagaIronOre 322 SiriusMinerals 217 LondonMining 204
SierraRutile 296 PatagoniaGold 195 WestAfricanMinerals 158
PatagoniaGold 290 WestAfricanMinerals 190 ZanagaIronOre 146
SiriusMinerals 280 ZanagaIronOre 166 AmaraMining 134
PanAfricanResources 246 BellzoneMining 129 NautilusMinerals 121
BellzoneMining 237 NautilusMinerals 126 Gemfields 120
EasternPlatinum 231 EasternPlatinum 125 CoALofAfrica 117
Metminco 173 Gemfields 122 EasternPlatinum 108
Petmin 156 Petmin 121 EMEDMining 108
CluffGold 132 Metminco 120 KrysoResources 105
Gemfields 121 CluffGold 113 Petmin 98
FrontierMining 111 KrysoResources 102 Metminco 95
Top20marketvalue£m 7,626 Top20marketvalue£m 4,968 Top20marketvalue£m 4,914
Totaluniversemarketvalue£m 12,401 Totaluniversemarketvalue£m 8,533 Totaluniversemarketvalue£m 8,695
Top20represent(%) 61% Top20represent(%) 58% Top20represent(%) 57%
11Ernst & Young Mining & Metals MiningEyeQ32012
Shadingrepresentsindexentrants
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