Miner Sable set to delist after stock plummets

SABLE Mining Africa was once considered an exciting miner, supported by blue-chip shareholders such as JPMorgan and Henderson Global. Midas tipped the shares in November 2013 at 9½p. Today, the stock is suspended on AIM at 0.202p and the firm intends to delist next month.

Sable was initially hit by the Ebola virus and a slump in the price of iron ore. This year, it was accused of bribery and corruption in Liberia, an allegation it strongly denies.

For investors, the most pressing question is what to do. Sable has a special meeting on October 7 and it needs 75 per cent of votes cast to be able to delist. Even if investors vote against, the firm will almost certainly leave AIM as its adviser has resigned and it is unlikely to find another.

The group hopes to find a specialist firm that will match buyers with sell- ers once it leaves AIM to provide some liquidity. Chief executive Andrew Groves is also keen to return the firm to market as soon as practicable, either by reversing into another AIM business, merging with a listed entity or even independently, albeit with a focus on revenue generation rather than exploration.

Midas verdict: Sable’s story is dispiriting, but investors are best advised to vote in favour of delisting and hold on to their shares. Any other action will achieve little at this stage.