HA NOI (VNS) — Masan Resource, a Masan Group Corporation subsidiary, listed 703.5 million shares on the Unlisted Public Company Market (UPCoM) under the code ‘MSR' yesterday, for a reference price of VND15,500 (US$0.68) each.
This is one of the biggest stocks in the UPCom by market capitalisation.
The company, with a charter capital of more than VND7 trillion ($311 million), owns and operates the polymetallic Nui Phao Mine in Northern Viet Nam, one of the world's largest identified tungsten (wolfram) deposits outside China with a reserve of 66 million tonnes.
The mine is also among the largest producers of acid-grade fluorspar and bismuth in the world.
According to research firm Somerley's report and the United States Geological Survey, Nui Phao tungsten accounts for about 30 per cent of the world's total supply. Its bismuth can meet 40 per cent of the global consumption, while its fluorspar production amounts to 4 per cent of the total global supply.
These are rare metals that have strategic significance for many industries in the world today, including metalworking, mining, oil and chemical industries, besides the construction sector.
MSR was the most active on the UPCoM yesterday with 920,000 shares traded, but its price slid 7.7 per centto VND14,300 ($0.64) a share.
UPCoM has 218 trading stocks with a total market capitalisation of over VND363 trillion ($16.1 billion).
The UP-Index rose 0.2 per cent to close at 51.38 points yesterday.
Through the listing, Masan Resource expects to diversify its shareholder structure and attract strategic investors who are keen on mining operations.
Foreign investors hold more than a 24.5 per cent stake in Masan Resource, while the parent company Masan Group owns 75.5 per cent, its filing with the Ha Noi Stock Exchange on Wednesday said.
Mount Kellett Capital Management LP is currently the largest foreign stakeholder with a 20 per cent capital holding, while the other stakeholders include Tiberon Minerals and Private Equity New Markets III (PENM III) under the management of Denmark's BankInvest.
The Masan Group bought 70 per cent of the Nui Phao mine project from Dragon Capital in 2010. After four years of calling for investment, the mine started operations and began generating revenue last year.
The company earned nearly VND2.83 trillion ($125.8 million) in revenue in 2014, and almost VND1.25 trillion ($55.6 million) in the first half of this year, of which 41 per cent came from tungsten production.
Fluorspar accounted for 32 per cent of the total revenue, while copper comprised 27 per cent.
Global commodities have slumped in recent years. Tungsten prices have been at a five-year low, affecting Masan Resource's revenue. However, the company has said the price of the metal would rise again from next year and that its profit could reach more than VND1 trillion ($44.4 million). — VNS