News

July 01, 2008

Construction Is Imminent At Leyshon's Zheng Guang Project, And A Hong Kong Listing's Not Far Off Either

By Richard Roberts

Leyshon Resources managing director Paul Atherley has confirmed the company is considering a Hong Kong listing to help fund development of the 70 per cent owned $US50 million Zheng Guang gold-zinc project in northern China and to try to take advantage of the precipitous share price multiples Chinese investors are assigning to producing gold companies.

China’s second biggest gold miner, Hong Kong-listed Zijin Mining Group, recently raised $US1.4 billion via a Shanghai Stock Exchange offering of some 10 per cent of its expanded issued capital at a price equal to more than 40 times its 2007 earnings per share.

“We see valuations of anything from 35-65 times price-to-earnings for Hong Kong and Shanghai listed gold companies,” Atherley told HighGrade from Leyshon’s Beijing head...