Nickel prices continue to drop, due mostly in part to weak demand from top consumer China, but that isn’t stopping one Philippine nickel miner from pursuing an initial public offering.
TVI Resource Development (Phils) Inc plans an IPO to raise as much as $22 million to fund a domestic gold and silver mining pursuit, according to a recent report from Reuters.
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Come Dec. 18, the Philippine miner, which Canadian miner TVI Pacific Inc holds a 31% equity interest in, will seek a listing on the Philippine Stock Exchange. The timing here is peculiar as Philippine nickel miner shares have suffered this year following an exemplary performance in 2014. Fellow miner Global Ferronickel Holdings Inc has held off on its IPO due to its stock price falling nearly 60% this year on nickel’s struggles.
That’s not stopping TVI Resource Development, however. The plan is to sell up to 272.02 million shares for the IPO, leading to a potential $22 million in earnings with a secondary offering potentially leading to $11 million in earnings, Reuters reported.
Will Nickel go the Way of Zinc and Lead?
A bearish market for base metals has been the story for the latter part of 2015. Nickel has notably suffered, as have zinc and lead, but the story for the latter two has changed in recent days. Zinc and lead, which are mined together, rose sharply last week on the heels of Glencore‘s announcement it will cut its annual zinc production by one third.
How will nickel fare for the remainder of 2015 and into 2016? You can find a more in-depth nickel price forecast and outlook in our brand new Monthly Metal Buying Outlook report. For a short- and long-term buying strategy with specific price thresholds: