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Great Southern Copper (GSC), a copper-gold exploration company operating in Chile, its intention to float on the standard segment of the Main Market of the London Stock Exchange (LSE) on 4 October 2021.

Should GSC proceed with its offer, it plans to use the proceeds to advance the exploration of its two projects in San Lorenzo and Especularita in Chile. The company intends to take advantage of the supply deficit in the copper sector by exercising its option to acquire rights to 100% of the two projects that are prospective for large porphyry copper-gold deposits in the underexplored coastal belt of Chile, the world's largest copper miner and producer. Commenting on the company’s golden opportunity, Sam Garrett, CEO of GSC, said: 

‘Listing on the London Stock Exchange will enhance the Company's profile, gives GSC access to institutional investors, and will provide funds to explore our projects in Chile. We look forward to welcoming new investors at this exciting point in GSC's development.’

With its exploration projects located in a vital mining jurisdiction, GSC is looking to capitalise on copper’s central role in sustainable technologies and renewable energy systems, including solar, hydro, thermal and wind energy. The increasing demand on copper for its wide variety of applications in day-to-day life is creating a supply deficit as existing resources are being depleted at a faster rate than new mines can be unlocked, leading to a squeeze on global copper inventories. Most recently the rapidly growing electrical vehicle market is placing a huge amount of pressure on copper’s limited supply as according to Goldman Sachs, elective vehicles contain up to five times (60-83kg) more copper than a regular car with a combustion engine.

From a market perspective, the company predicts continued strength in the demand for copper and reported that the US Geological Survey estimates that ‘200 million tonnes of the world's 870 million tonnes of copper reserves are located in Chile’, meaning that GSC is best placed to exploit the growing demand. In his statement, Garret said:

‘It is a great time to be focused on copper-gold exploration and we are excited to advance our two large scale exploration projects in Chile, a globally significant mining jurisdiction and the largest copper producing country in the world.  There is a significant shortfall in the supply of copper, which is becoming more acute with demand increasing as the global economy moves towards green, sustainable energy. Copper exploration and extraction will be vital in achieving a low carbon future, which presents an excellent opportunity for a new generation of copper deposits to help mitigate the looming supply deficit. It is an added incentive for explorers to advance highly prospective targets such as our San Lorenzo and Especularita projects.’

The potential IPO speaks to an ongoing trend of IPOs from mining companies, with five companies from the sector admitted to trading in 2020 increasing to six in the first half of 2021 with admissions from (AIM) and (Main Market). Should GSC’s IPO proceed, it will be the seventh mining company to be admitted to trading on the LSE in 2021.