...

Metals Trader Concord Eyes Possible IPO in 2022 on Resource Boom




  • In Business
  • 2021-10-10 14:01:56Z
  • By Bloomberg
 

(Bloomberg) -- Concord Resources Ltd., a trading house set up six years ago to challenge the dominance of Glencore Plc and Trafigura Group in metals markets, may list its shares as soon as next year.

Most Read from Bloomberg

  • NYC's Waldorf Gets Plush Renovation, Becomes Icon of China's Overreach

  • Before Interstates, America Got Around on Interurbans

  • Tycoon Behind a Crisis-Era Property Crash Now Sits on a $9 Billion Debt Mountain

  • How Singapore's $50 Billion Financial District Will Change After Covid-19

  • How France Turned the Humble Roundabout Into a Showcase for Art

The private equity-backed company has long viewed an initial public offering as a logical step, and believes 2022 may be the right time, Chief Executive Officer Mark Hansen said in an interview. He emphasized that no decisions had been taken yet.

"I think there's an option for us if commodity markets remain as interesting as they are," he said.

London-based Concord was founded in 2015 by a group of former Noble Group Ltd. traders, with backing from private equity investors including Pinnacle Asset Management LP, Pala Investments AG, MKS PAMP Group and the partners of Ospraie Management LLC.

The company this summer bought its first major asset with the acquisition of a controlling stake in an alumina plant in Louisiana. Hansen said the deal had made Concord one of the world's three largest alumina traders, and would help it benefit from a renaissance in the North American aluminum market as supply-chain bottlenecks force consumers to source production closer to home.

Profit Margins

"The commodities business in the last 20 years has been very much about going to find the cheapest possible location of production," he said. "The post-coronavirus world is a bit different, where you have high logistics costs, you have delays, you have significant increases in demand -- that creates the opportunity to be closer to the consumer and have better profit margins."

Alumina, which is the key ingredient for producing aluminum, and aluminum itself have both soared in price as production in China has been hit by power outages and a drive to limit carbon emissions. Alumina prices have jumped by more than 50% in the past two months, helped too by a fire that closed a major Jamaican plant.

Concord is on track for record profits this year, Hansen said. While its plant in Louisiana was hit by Hurricane Ida, it is now back to nearly full production. He said the company was working to integrate its new acquisition, and could consider an IPO, possibly in London, next year once that is complete.

The move to own a production asset sets Concord on a similar path to larger traders like Glencore -- which is also one of the world's top miners -- and Trafigura, which took control of zinc producer Nyrstar in 2019. While Glencore went public in 2011, Trafigura has remained private and is owned by its employees.

Still, Concord remains a much smaller company than the other two, focused more narrowly on metals markets and particularly on alumina and aluminum. The most recent accounts filed at Companies House valued its equity at $253 million at the end of 2020.

Most Read from Bloomberg Businessweek

  • Anyone Seen Tether's Billions?

  • As Louisianans Flee Hurricanes, Natural Gas Dollars and Jobs Flood In

  • Atlanta's Wealthiest and Whitest District Wants to Secede

  • The Left-for-Dead Hospital That Got a Second Chance for $1

©2021 Bloomberg L.P.

COMMENTS

More Related News

U.K. Inflation Wagers Hit Highest Since Before BOE Independence
U.K. Inflation Wagers Hit Highest Since Before BOE Independence

(Bloomberg) -- Most Read from BloombergThe Top Money Maker at Deutsche Bank Reaps Billions From SingaporeForget Palm Springs-Santa Fe Is the New Mecca for...

Tencent Blames WeChat Access for Search Engines on Loophole
Tencent Blames WeChat Access for Search Engines on Loophole

(Bloomberg) -- Tencent Holdings Ltd. said loopholes created during a recent tech upgrade made some content on its enclosed WeChat ecosystem available on...

Intel Falls as Outlook Shows Costly Path to Regain Dominance
Intel Falls as Outlook Shows Costly Path to Regain Dominance

(Bloomberg) -- Intel Corp. Chief Executive Officer Pat Gelsinger spelled out the cost of his drive to return the world's largest chipmaker to leadership of...

Some Strategists See Bitcoin at $100,000 By Year
Some Strategists See Bitcoin at $100,000 By Year's End

(Bloomberg) -- Most Read from BloombergThe Top Money Maker at Deutsche Bank Reaps Billions From SingaporeForget Palm Springs-Santa Fe Is the New Mecca for...

Europe
Europe's Recovery Stumbles Over Supply Squeeze Driving Inflation

(Bloomberg) -- Most Read from BloombergThe Top Money Maker at Deutsche Bank Reaps Billions From SingaporeForget Palm Springs-Santa Fe Is the New Mecca for...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business