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
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