Mining Giant With World’s Largest Gold Pit Eyes Public Markets

Uzbekistan’s state-backed Navoi Mining & Metallurgical Co. has selected major investment banks to lead a potential $20 billion initial public offering across London and Tashkent stock exchanges, according to Bloomberg, which cited people familiar with the matter.

The dual listing aims to take advantage of gold’s strong performance this year, with the precious metal climbing nearly 30% and boosting valuations across the mining sector. NMMC describes itself as the world’s fourth-largest gold producer.

Citigroup, Morgan Stanley and JPMorgan Chase will arrange the possible offering, with Rothschild & Co. serving as IPO adviser. Both Citi and JPMorgan previously helped NMMC issue debt on the London Stock Exchange.

The company generated $7.4 billion in revenue last year while producing 3.1 million ounces of gold at production costs of $979 per ounce. Operating profit reached approximately $4 billion.

NMMC’s flagship asset is the Muruntau mine, the world’s largest open-pit gold operation located in Uzbekistan’s Kyzyl Kum Desert. The massive excavation spans 3.5 kilometers by 2.5 kilometers and extends 560 meters deep, with plans to reach 1,000 meters.

The mine is so large it can be seen from space and contains an estimated 150 million ounces of gold reserves. It produces around 60 tons of gold annually, representing 70% of NMMC’s total output.

The IPO is part of Uzbekistan’s privatization agenda under President Shavkat Mirziyoyev’s economic reforms. The government plans to sell 10% to 15% of its stake in NMMC by the second half of this year.

NMMC contributes 6.5% of Uzbekistan’s gross domestic product and ranks among the country’s largest employers with over 47,000 workers across 12 mining sites.

No final decisions have been made and plans could still change, the people said. Representatives for NMMC and the investment banks declined to comment.

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