Rare Earths Global plans March listing in London

Rare Earths Global, a Chinese mining services group focused on the mining, refining and trading of rare earth elements, is seeking to list its shares on London's Alternative Investment Market (AIM).

Rare Earths Global, or REG for short, is the holding company for a vertically integrated mining services group with its operations in the People's Republic of China (PRC). The business specialises in the extraction, separation, refinement and trading of rare earth elements, oxides and products, with a focus on the more valuable heavy rare earth elements. Heavy rare earth elements account for just 7% of rare earth production worldwide.

REG has three main subsidiaries in China: Pingyuan Sanxie Rare Earth Smelting, which owns a smelting and separation plant in the Guangdong Province of China; Billion Full (Huangshan) Mining Services Technology, a mining services business providing mining management services, technical support and equipment to rare earth mining companies and factories based in China; and Huangshan Quansheng Mineral Products Sales, a rare earth products trading company which was incorporated in July 2011.

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Rare earth elements are widely used in industry and are commonly found in computers, smart-phones, medical equipment, fuel cells and many household products.

For the year ended 31 December 2011, REG reported turnover and profit before tax of £26.1m and £2.8m respectively, and ended the year with net cash of £1.3m.

The company is looking to issue $50m of new capital, which would give an indicative market capitalisation for the whole company (i.e. including those shares being retained by the existing owners) of $270m.

Trading in the shares is expected to commence before the end of March.

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