The world is not enough


The world does not have enough listed min­ing shares, and South Africa in par­tic­u­lar does not have enough – from nearly 150 min­ing and re­source shares in the late Eight­ies and early Nineties, to barely 60 left to­day, tak­ing into ac­count that a third of those hardly trade at all, never mind are small-mar­ket cap and risky to boot. But they are at least

NUM­BER OF TRADES IN EQ­UITY SHARES # of trades in Septem­ber 2013 = 874 749 Num­ber of share trades (month-on-month) Elec­tronic Or­der Book Amer­i­cas Asia Pa­cific Europe, Africa, Mid­dle East Num­ber of share trades (year-to-year) Elec­tronic Or­der Book Amer­i­cas Asia Pa­cific Europe, Africa, Mid­dle East

+14% vs Septem­ber 2012

Sep 2013

Jan - Sep 2013 % change/ Sep. 2012 8.5% 18.2% 3.5%

% change/ Jan - Sep. 2012 -8.9% 11.5% -8.2% listed, which is bet­ter than the ma­jor­ity of the nearly 1 600 ac­tive min­ing com­pa­nies that the Depart­ment of Min­eral Re­sources (DMR) was re­cently quoted as say­ing are ac­tively work­ing in South Africa to­day.

Gov­ern­ments the world over fail to ap­pre­ci­ate and en­cour­age enough com­pa­nies to list. List­ing in­creases vis­i­bil­ity and ac­count­abil­ity hugely in the world to­day. Which is why more com­pa­nies are delist­ing and naïve gov­ern­ments con­tinue to tighten up reg­u­la­tion and com­pli­ance even more so – thereby driv­ing even ‘more’ com­pa­nies to delist. Gov­ern­ments will some­day, prob­a­bly soon, rue the fact that they did much more to en­cour­age com­pa­nies to delist, than to list and re­main listed.

South Africa is look­ing at four new list­ings in the min­ing and re­source sec­tor this year. Glen­coreXs­trata In­ter­na­tional, Sibanye Gold, Water­berg Coal Com­pany and Giyani Gold. Th­ese JSE list­ings are as varied as the cur­rent range of min­ing and re­source shares on the JSE. Glen­coreXs­trata is a huge in­ter­na­tional com­mod­ity pro­ducer (min­ing house) and trader with a mar­ket cap of $71bn. Sibanye is a pure South African gold miner and eq­uity with a mar­ket cap of $1.1bn. Water­berg Coal Com­pany is newly listed, barely traded and has a mar­ket cap of $50m. And lit­tle Giyani Gold is a Toronto and JSE listed (but not yet trad­ing) com­pany, with a mar­ket cap of $35m.

Glen­core’s Ivan Glasen­berg

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