Monday, 25 July 2011
Origo behind new copper-gold group
Now for some more news from Origo Partners, the AIM-listed, China-focused private equity group that this column has featured before.
Last week, Toronto-listed Brazilian Diamonds completed its acquisition of Origo’s stake in Kincora, which owns the Bronze Fox copper/gold project in Mongolia.
The deal gives Origo around 35 per cent of Brazilian Diamonds, which will be renamed Kincora Copper to create a new listed copper-gold company.
Alongside, Kincora raised an additional C$13.6m (£8.8m), including C$500,000 from Origo and C$1m from its affiliates.
The deal should introduce transparency, according to the analysts at Liberum Capital.
“Origo will benefit from having a mark-to-market value for its investment, increasing the transparency of valuations, although this may also increase volatility in the holding,” they explained, reiterating its “buy” recommendation on Origo’s stock.
Looking ahead, the analysts also raised the prospect of another listed miner emerging from the Origo portfolio.
“Origo’s Mongolian resources projects are well placed to create significant upside over the short to medium term, and we would highlight Origo’s interest in Gobi Coal & Energy as the next possible IPO in Origo’s Mongolian mining portfolio,” they said.