Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Hong Kong Stock Exchange  >  Fosun International Limited    656   HK0656038673

FOSUN INTERNATIONAL LIMITED

(656)
  Report
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Small mining companies shun London market after IPO flops

10/26/2017 | 12:57pm EST
FILE PHOTO:Pedestrians leave and enter the London Stock Exchange in London

LONDON (Reuters) - Lacklustre performances by small mining companies on the London Stock Exchange are driving rivals in need of cash to find alternative ways to raise capital, either by merging or turning to other markets such as Toronto.

Six small miners have listed in London this year, up from two last year, but four of those are now trading below their offer price despite a rally in metals, led by a 27 percent jump in copper and aluminium prices and a 10 percent rise for gold.

London hosts the world's biggest mining companies, including Rio Tinto (>> Rio Tinto) (>> Rio Tinto Limited) and BHP Billiton (>> BHP Billiton Plc) (>> BHP Billiton Limited), but the poor performance of newly listed miners and other small miners trading in London is pushing some to change their plans.

On Tuesday, Condor Gold <CNDR.L>, a Nicaraguan gold miner whose share price is down 10 percent this year, said it had received conditional approval for a secondary listing in Toronto, where it hopes valuations will be higher.

"London is not a great place to be listed as a junior explorer. There is not a clear understanding of what we do," said Mark Child, the company's chairman and chief executive.

Metal development company Phoenix Global Mining (>> Phoenix Global Mining Ltd), which listed in London at the end of June, will also consider North American listings at a future date, its CEO Dennis Thomas said.

Toro Gold, which operates in Africa, started preparing for a London listing with the help of Bank of Montreal (BMO) and corporate advisor Numis Securities earlier this year but has shelved its plans, sources said.

Toro Gold, Numis and BMO were not immediately available for a comment.

"It is still a difficult time to raise money through IPOs for the mining sector ... because the price recovery is in its reasonably early stages," said Lee Downham, head of EY's global mining & metals transaction advisory services.

Small mining companies, which are often betting on exploiting valuable resources in a few concessions, can eventually enjoy far bigger stock market price increases than major firms with sometimes limited opportunities for growth.

But in the early years, they may struggle to balance the heavy spending needed to get mines up and running with a lack of revenue, meaning some need regular capital injections.

London's big institutional investors, however, are seen as more risk averse than those in major mining centres such as Canada and Australia, particularly when it comes to relatively illiquid shares they cannot get out of quickly, bankers say.

Besides Russia's Polyus <PLZLq.L>, which has agreed to sell a 10 percent stake to a consortium led by China's Fosun International (>> Fosun International Limited), and Rainbow Rare Earths (>> Rainbow Rare Earths Ltd), which mines rare earth materials, the other four miners that listed in London this year are down.

Polyus on Thursday issued a statement saying the Fosun stake sale had a completion deadline of February 2018, versus a previous target of the end of the year, and would be completed "as soon as the Chinese government gives its approval".

M&A INSTEAD

Condor Gold's Child says figures from RBC Capital Markets show some emerging gold producers listed in Toronto can be valued at roughly three times as much as in London, based on their estimated gold reserves.

Canada, like Australia, has a strong base of retail and institutional investors interested in resources companies.

The Toronto stock exchange, which is home to more than half the world's public mining companies, has seen a flurry of listings this year, with many taking advantage of a doubling in zinc prices since late 2015.

Brazil-based zinc producer Nexa Resources and at least three other zinc miners are planning listings on the Toronto Stock Exchange or the TSX Venture Exchange (TSX-V) market for start-ups, according to company filings, on top of six other small mining companies that have listed already this year.

In London, the FTSE AIM Basic Resources Index <.FTAXX1700S> is up less than 10 percent since the start of the year, compared with a near 20 percent rise for larger firms in the FTSE 350 Mining Index <.FTNMX1770>, as investors opt for established, diversified players over riskier, smaller firms.

"They want to have some exposure but then why invest in something small which is hard to trade out of?" said Raj Khatri, senior managing director at Macquarie Capital.

Some bankers say they are now advising companies to avoid London listings, saying there are better ways to expand. Some are turning their back on equity markets and are instead looking for mergers and acquisitions (M&A).

Last month, Bermuda-based zinc and lead miner Lynx Resources agreed to a $402.5 million reverse-takeover deal with Kazakhstan-focused copper miner Central Asia Metals (>> Central Asia Metals Ltd) after ruling out a listing, industry sources said.

"Although we have started to see an increase in mining companies considering IPOs in London, there isn't yet a strong conviction that another sustained cycle upwards is on the way and so we caution clients who want to list to explore M&A options in parallel, or to hold off," said Macquarie's Khatri.

For a graphic on FTSE Small Cap Miners vs Majors, click - http://reut.rs/2ldb015

For a graphic on performance of newly listed mining/resources companies, click - http://reut.rs/2y39eFr

(Graphics by Alistair Smout and Ritvik Carvalho; editing by David Clarke)

By Clara Denina and Barbara Lewis


© Reuters 2017
Stocks mentioned in the article
ChangeLast1st jan.
ALTUS STRATEGIES PLC -0.63% 78.5 Delayed Quote.1.29%
AMP LIMITED -0.64% 1.555 End-of-day quote.-0.32%
BASE CO., LTD. 0.33% 6070 End-of-day quote.-1.30%
BASE,INC. 3.40% 13380 End-of-day quote.37.09%
BHP GROUP -1.89% 46.13 End-of-day quote.8.72%
CENTRAL ASIA METALS PLC -2.74% 231 Delayed Quote.-3.75%
CHANGE INC. -4.66% 3475 End-of-day quote.-1.42%
CLARKE INC. -1.70% 6.92 Delayed Quote.3.59%
CORA GOLD LIMITED 0.00% 9 Delayed Quote.5.88%
DOW JONES AFRICA TITANS 50 INDEX 0.35% 543.37 Delayed Quote.2.30%
EURO / BRAZILIAN REAL (EUR/BRL) 2.24% 6.6542 Delayed Quote.2.58%
FOSUN INTERNATIONAL LIMITED -3.10% 11.86 End-of-day quote.-2.63%
GOLD -0.79% 1854.8 Delayed Quote.-1.49%
JANGADA MINES PLC 1.43% 7.1 Delayed Quote.52.69%
NEXT PLC -2.99% 7914 Delayed Quote.11.69%
POLYUS -1.68% 14784 End-of-day quote.-2.90%
RAINBOW RARE EARTHS LIMITED -3.55% 13.6 Delayed Quote.26.51%
RIO TINTO GROUP -2.10% 119.32 End-of-day quote.4.82%
RIO TINTO PLC -0.81% 5876 Delayed Quote.7.42%
S&P AFRICA 40 INDEX -0.48% 176.06 Delayed Quote.2.26%
S&P/TSX COMPOSITE INDEX -0.39% 17845.91 Delayed Quote.2.37%
S&P/TSX VENTURE COMPOSITE INDEX 0.88% 947.43 Delayed Quote.8.23%
SILVER -1.74% 25.4685 Delayed Quote.-1.58%
THE LEAD CO., INC. -1.44% 820 End-of-day quote.-2.38%
THE TORO COMPANY 0.65% 101.16 Delayed Quote.6.66%
WORLD CO., LTD. 0.84% 1319 End-of-day quote.5.27%
All news about FOSUN INTERNATIONAL LIMITED
01/20Fosun Unit Fortune Star Eyes Redemption of $500 Million Bonds Due 2022
MT
01/20Fosun International Unit to Buy Back Singapore-Listed Bonds Due 2022
MT
01/04Fosun International Unit to Buy 70% Equity Interest in Sichuan Tuopai Shede G..
MT
2020China's Fosun plans plant to make BioNTech's COVID-19 vaccine -Caixin
RE
2020China's Fosun to set up JV with BioNTech to make COVID-19 vaccines-Caixin
RE
2020MARKET CHATTER : Fosun Loses Ownership in Cirque du Soleil
MT
2020How Pfizer vaccine could be cold comfort for some Asian nations
RE
2020Hong Kong stocks end at four-month high after Biden win
RE
2020Portugal's Millennium bcp 9-month profit drops 46% as provisions soar
RE
2020Portugal's Millennium bcp 9-month profit drops 46% on higher provisions
RE
More news
Financials
Sales 2020 130 B 20 125 M 20 125 M
Net income 2020 9 279 M 1 432 M 1 432 M
Net Debt 2020 111 B 17 118 M 17 118 M
P/E ratio 2020 8,94x
Yield 2020 2,35%
Capitalization 83 424 M 12 871 M 12 872 M
EV / Sales 2020 1,49x
EV / Sales 2021 1,27x
Nbr of Employees 72 000
Free-Float 28,1%
Chart FOSUN INTERNATIONAL LIMITED
Duration : Period :
Fosun International Limited Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends FOSUN INTERNATIONAL LIMITED
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 9
Average target price 10,75 CNY
Last Close Price 9,92 CNY
Spread / Highest target 25,4%
Spread / Average Target 8,40%
Spread / Lowest Target -7,57%
EPS Revisions
Managers and Directors
NameTitle
Qi Yu Chen Co-Chief Executive Officer & Executive Director
Xiao Liang Xu Co-Chief Executive Officer & Executive Director
Guang Chang Guo Chairman
Qun Bin Wang Co-Chairman
Ping Gong Chief Financial Officer & Executive Director
Sector and Competitors
1st jan.Capitalization (M$)
FOSUN INTERNATIONAL LIMITED-2.63%12 871
ALLIANZ SE-2.70%97 865
CHUBB LIMITED-0.90%68 840
ZURICH INSURANCE GROUP LTD-1.15%62 088
MARSH & MCLENNAN COMPANIES-4.42%56 562
BAJAJ FINSERV1.85%19 779