Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (17602)	4/11/2008 8:51:30 PM
From: LoneClone	Read Replies (1) \| Respond to of 193918

Fresnillo IPO to raise US$900 million mining-journal.com Fresnillo Ltd, set up to hold the precious-metals assets of Mexico`s Industrias Penoles SAB, plans to raise at least US$900 million in an initial public offering in London to expand operations in Mexico and repay debt. Fresnillo, the world`s biggest primary silver producer, plans to complete the sale next month, it said in a statement distributed by the Regulatory News Service on April 11. Penoles will retain 75% to 77% of the newly created company. It will also sell an unidentified amount of its current shareholdings, the statement said. Mexico City-based Fresnillo, which has three operating silver mines in Mexico, plans to double output in the next decade. It produced 34.4Moz of silver and 280,000oz of gold last year, with US$647.9 million in sales. "The value of the assets were not being recognized within the Penoles structure," Damien Hackett, an analyst at Canaccord Adams Ltd in London, said April 11 by phone. "Splitting the precious metals assets will allow them to achieve a higher rating." Penoles will keep its base-metals mines, smelting and refining unit and chemicals production, the statement said. Silver for immediate delivery in London was unchanged at US$17.95.oz in London at 10:21am prices have advanced every year since 2000, climbing 30% in the past year as a weaker dollar and rising oil costs boosted the appeal of precious metals as a hedge against inflation. JPMorgan Cazenove Ltd will be the sole sponsor and adviser to Fresnillo on the share sale. Penoles has been listed on the Mexican Stock Exchange since 1968. (Bloomberg, April 11)