Ferro-Alloy Resources Ltd (LON:FAR) has started trading on the London Stock Exchange with a market value of £219.1mln.
The vanadium mining and mineral processing company raised £5.2mln from institutional shareholders through a placing and subscription of shares as part of its admission to the LSE.
A group said a placing price of 70p implies a market capitalisation of £219.1mln.
The money raised will be used to develop and expand production at its key Balasausqandiq vanadium project in Kazakhstan.
Ferro-Alloy Resources, which is also listed on the Kazakhstan Stock Exchange, is targeting overall annual production of 23,000 tonnes.
The company said low capital and high margin give the project a net present value of US$2bn based on a long-term price forecast of vanadium pentoxide at US$7.50 per pound.
Chief executive Nick Bridgen said the completion of its listing on the LSE marks a “significant milestone” for the company.
“We're excited to be entering the next phase as we look to advance Balasausqandiq; this unique project has the potential to be one of the world's largest and lowest cost producing mines,” he said.
“Given our existing production and defined development path to build a low capex mine and production facility, Ferro-Alloy offers a fantastic opportunity to gain exposure to the growing vanadium market, the fundamentals of which continue to strengthen in line with the emergence of vanadium batteries used in clean energy storage.”
In the past three years, the vanadium pentoxide price has surged 450% to about US$14 per pound as of March 22, on the back of higher demand.
Steel producers use vanadium for its strengthening properties while there is an emerging use of the metal for vanadium redox flow batteries to generate clean energy.