Metallon Corp, the largest gold mining company in the country of Zimbabwe has announced that it is considering expanding across Africa and offering trading in London but would not have a definitive answer until March of next year.
The company has assets in the Dominican Republic and is in the final steps of closing a deal for an operation in Tanzania. The CEO for Metallon, Mzi Khumalo said in an interview on October 9th “It’s going to depend on how many assets we can assemble so that when we list we go onto the main board in London.”
Metallon was founded in 2002 by Khumalo and this marks the second time the company has made announcements they were considering an initial-public-offering. In 2007, the company delayed plans for an IPO due to a lack of equipment combined with an unstable power grid.
Khumalo is South African and served time as a political prisoner on Robben Island with Nelson Mandela during apartheid. He purchased the mining assets of Lonmin Plc in 2002 for more than 15 million dollars. The company also originally planned to offer a stock on the South African bourse in 2005, but differences with the Zimbabwe Central Bank stalled the plans.
The company forecasts 500,000 ounces or more per year by 2019. IN 2013, Metallon produced 82,000 ounces and initial estimates for this year put the totals above 100,000.
Metallon has four mines currently in operation with ranging costs between 600 to $900.00 per ounce. A fifth mine is currently out of operation due to flooding.
The government of Zimbabwe has instituted a new policy called “indigenization” where they force foreign owned miners and banks to cede control of their operations to the government.
Khumalo also brought up his status as an industry pioneer “I came into Zimbabwe when nobody would touch this country with a barge pole,” Khumalo said. “I took the risk. There were times when it felt I had made a terrible decision but I decided to wait.”