Internationally diversified pure play gold producer Nordgold has announced the intended publication of a registration document and its proposed plan to undertake an initial public offering (IPO).

Should Nordgold proceed with the offer, the group will apply for admission of its shares to the premium listing segment of the official list of the Financial Conduct Authority (FCA) and to trading on the LSE’s main market for listed securities.

The company has also applied for admission of its shares to trading on the Moscow Exchange.

“Nordgold is an international gold miner of scale, with a diversified, high-quality global asset portfolio and a proven record of new mine development, having successfully launched three new large-scale mines since 2013, each with a payback period of less than three years.

“We also benefit from an experienced well-established board, a deeply ingrained commitment to the highest environmental, social and governance standards and a core management team that has led the growth of the group since its inception,” acclaims CEO Nikolai Zelenski.

“Following a record year in 2020, and with a low-cost, low-risk development pipeline centred on the highly prospective Gross region in Russia, now is the right time for Nordgold to seek a premium London listing.

“We believe the combination of scale, a strong development pipeline, ambitious growth plans and excellent record, together with consistent free cash flow generation, disciplined capital allocation, low leverage and a commitment to shareholder returns, makes for a compelling investment case,” he notes.

Nordgold is not receiving any proceeds from the offer.

The board of directors believes the offer and admission will position the group for its next stage of development by strengthening its capital structure by giving it access to a wider range of capital raising options which may be of use in the future, in particular to fund the group’s future development plans and to allow it to continue to compete as an international gold producer.

Moreover, it is expected to create a liquid market in the shares for shareholders and assist in the incentivisation and retention of key management and employees.

Further, the group believes a number of factors appear supportive of future gold demand and prices, including uncertainty in the global financial markets, the amount of monetary stimulus being injected into the global economy, possible inflationary pressures in the medium term from an exceptionally low interest rate environment and the possibility of currency revaluations, including dollar depreciation.

In addition to Nordgold’s operations in Russia, it also holds gold mining assets in Kazakhstan, Burkina Faso and Guinea.