One of the key directions of Kenes Rakishev activity is environmentally responsible mining. He pioneered leaching as a non-destructive and low-energy consuming ways to mine metals underground, without the need to massively disrupt the surface of Earth. Now Kenes Rakishev comes with a bold project: he plans to develop nickel and cobalt mining in the Eastern Kazakhstan. The initial test results are favourable and Kenes Rakishev plans to make his company Battery Metals Technologies (BMT) public.
Kenes Rakishev’s Battery Metals Technologies nickel and cobalt mining company has applied for an IPO listing at the Hong Kong Stock Exchange. The expected IPO deadline is autumn 2021.
Nickel and cobalt are the key materials in the batteries of modern electric vehicles. Kenes Rakishev, a great EV enthusiast himself and an indirect participant of many EV projects, thrives to achieve a synergy of mining, battery production and EV manufacturing. He is an early supporter of Israeli StoreDot startup, which works to create a ultra-fast charging batts for EV transport.
This year, Battery Metals Technologies (BMT) is going to start pilot development of the Gornostaevsky nickel and cobalt deposit in East Kazakhstan region. The transition to commercial production is planned for 2023. BMT, a company with a Singapore registration, is a “daughter” of the Kazakhstan holding company Fincraft Resources, which is controlled by businessman Kenes Rakishev.
Now the application of Battery Metals Technologies for an IPO is being considered by the commission of the Hong Kong Stock Exchange, Fincraft Resources told the EconomicInform.
This is the company’s second bid for an initial public offering on HKEX. In December 2020, BMT sent the first listing application to the Hong Kong Stock Exchange, but it was rejected in January 2021. Kenes Rakishev explains that the application was returned for revision, and this happened not due to violations on the part of the company.
“In the second application, we reflected all the wishes and responded to all the comments of the exchange,” said Bektas Mukazhanov, Chairman of the Management Board of Fincraft Resources.
The IPO of Battery Metals Technologies may take place in September or October 2021. In this case, the parameters of the upcoming IPO, such as the price range and the number of shares to be placed, may be known as early as August or September.
At the moment, it is still unknown what stake the company will put up for sale.
In accordance with the rules of the exchange, almost all the parameters of a possible placement are hidden, which can be changed during the approval process. According to FINAM Group analyst Alexey Kalachev, it would be appropriate for BMT to place at least 10% of its shares in the IPO.
This will provide the company with sufficient liquidity in the future and attract the attention of institutional investors.
“I believe that the company’s capitalization can be about $2-3 billion. But as a result of the placement, it can not be excluded that the stock market players will appreciate it even higher. The topic of battery metals is now relevant and will be in the centre of attention as the energy transition is implemented for more than one decade, ” Kalachev believes.
The listing of Battery Metals Technologies is planned not only on HKEX, but also on AIX.
Battery Metals Technologies, through its subsidiary Kaznickel LLP, has the right to subsurface use at the Gornostaevsky field until February 26, 2026 (contract dated February 26, 2004). In 2019-2020, the company actively prepared the field for the start of pilot development in 2021. Commercial production, again, should begin near the end of 2023. BMT predicts that by 2039, annual production will be up to 20 thousand tons of nickel and 1.3-1.5 thousand tons of cobalt per year. The total cost of the project is estimated at $1.53 billion. At the first stage, BMT costs will average $70 million per year, and when it reaches full capacity – $115 million.
The estimated mineral resources of the project are 470.3 thousand tons of nickel and 32.33 thousand tons of cobalt. As indicated in the company’s documents, the life cycle of the field is 30 years from the start of production, of which the last six will fall on the late stage of operation. Thus, with an annual production of 20 thousand tons of nickel, the Gornostaevsky project will provide the company with raw materials for 23.5 years. At the same time, BMT does not exclude that the reserves of the field may be increased due to further exploration.
The extraction of nickel and cobalt will take place by underground leaching, which allows the metals to be obtained without physical extraction of the rock, as is the case with the open or underground method. The national nuclear company Kazatomprom uses the same technology to extract uranium. This method of extraction is considered low-cost and more environmentally friendly compared to the traditional one.
Kenes Rakishev has a history of successful IPO launches. He was the first Kazakhstani to launch a public company at NASDAQ.