In four years, Ivanhoe Mines Group subsidiary SouthGobi Resources Ltd. has expanded from six employees, a coal deposit with no proven market and a market capitalization of $35 million to 520 employees, 2.5 million tonnes of annual coal sales and a company value of $2.6 billion.
A key force behind this growth is SouthGobi CFO Terry Krepiakevich who joined the company in 2006.
Krepiakevich, who previously initiated an initial public offering process for Extreme CCTV Inc. before the high-tech company was acquired by Bosch Security Systems, spearheaded a process to earn SouthGobi a listing on the Hong Kong Stock Exchange (HKSE).
To achieve that, Krepiakevich had to meet requirements such as having SouthGobi’s TSX listing moved from the TSX Venture Exchange to the TSX main board and transitioning to International Financial Reporting Standards. Also as part of achieving that Hong Kong listing, he led the due diligence for US$500 million in financing from China Investment Corp.
“As the first Canadian mining company to pursue this strategic advantage and leverage the explosive growth in Asia, Terry found a way to navigate the Hong Kong regulatory system,” said Alexander Molyneux, SouthGobi president and CEO, in nominating Krepiakevich.
In 2010, Krepiakevich’s efforts enabled the company to close a global equity offering of US$437 million and become the first Canadian mining company with dual listings on the HSKE and the TSX. •
