Zinifex Sticks To Nyrstar Timetable

The Age

Thursday October 4, 2007

Barry FitzGerald

RENEWED strength in commodity and equity markets will allow Melbourne-based Zinifex and Belgium's Umicore to stick to their original timetable for the $3-5 billion initial public offering of shares in the group created to hold their zinc smelting assets, Nyrstar.

The groups said the IPO would occur in "coming weeks" but added that this remained subject to market conditions and investor demand, as did the size of the offering.

The mid-July sell-off in commodities and mining shares in response to the US subprime credit crisis had raised fears that Nyrstar might need to be postponed until next year.

But the rebound since mid-August has encouraged the groups to believe that their original October planning for the IPO should remain intact.

Nyrstar has already been formally created. It is the world's biggest zinc metal producer and will list on the Eurolist of the Euronext Brussels stock exchange. The size and pricing of the IPO has not be revealed, although financial and operational data on Nyrstar has been released.

Revenue in the first half of 2007 was EUR2 billion ($A3.18 billion) and earnings before interest were EUR319 million.

Nyrstar produced 543,000 tonnes of zinc in the first half. It also produced 116,000 tonnes of lead. A book-build will determine final pricing for the float.

The $3-5 billion size of the IPO assumes 100 per cent of Nyrstar is offered. Zinifex has indicated it will return its share of the proceeds to shareholders if it cannot find a better use.

The group continues to be linked to talk of a takeover bid for Oxiana.

The reporter owns Oxiana shares.

LINK

? www.zinifex.com

© 2007 The Age

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