(The following press release from JSE Ltd. was received by e-mail. The
sender verified the statement.)
Johannesburg Stock Exchange pursues additional mining listings
Monday, 4 January 2013: The Johannesburg Stock Exchange (JSE) believes that
its well-regarded equity market, world class regulatory environment and
active global investor base make it an attractive listing destination for
African mining assets. Despite the tough listing environment in SA and
worldwide, 16 resource companies excluding reverse listings joined the JSE
in the last 5 years. In total, 69 resource companies are listed on the
exchange making up 25% of the exchange's market capitalisation.
John Burke, Director of the Issuer Regulation Division at the JSE, says the
exchange is pursuing resource listings. "Johannesburg started as a mining
town and owing to the number of resource assets in South and Southern
Africa, investors on this market understand investing in mining. Mining is
in our DNA. South African investors have a deep understanding of resource
companies and an appetite for investing in them. Where there are known
assets and management, you will find a willing buyer."
Business Development Manager at the JSE, Patrycja Kula, says despite the
challenging economic environment worldwide, companies are able to raise
capital on the JSE. "The message that the JSE shares with companies with
African assets is that there is capital in South Africa. The JSE provides an
enabling environment in which South Africans and Africans can benefit from
their resources. "
Kula says capital raising is made easier by the number of global investors
who use the JSE to gain exposure to the African continent. "Foreign
investors are able to enter and exit the market with ease, as well as to
Burke acknowledges that current tension in the mining sector plays a role in
investor interest in resource stocks, but points out that the JSE engages
with business and government on this and other matters.
"The JSE engages with government though platforms such as Business
Leadership South Africa and directly with key ministries," he says.
"Investors understand that despite the tension, there are also many
positives. We are particularly encouraged by the recent positive signs
coming out of the ANC's December 2012 conference, where delegates confirmed
their support for the National Development Plan."
Burke says there is good reason why investors would use the JSE to gain
exposure to the continent. "The South African financial services and legal
sectors are on par with the best in the world and many of the world's
largest investors have presences in SA. Travel to most major African
capitals is easy, the quality of life in South Africa is high and South
African business is increasingly linked to businesses on the rest of the
continent. These are all good reasons South Africa is an attractive
financial hub for Africa."
South Africans are increasingly becoming more interested in investing early
in exploration initiatives to maximise returns. Consequently the JSE exposes
its listed companies to investors and will be hosting two investor forums in
Cape Town during Mining Indaba in early February. The first aims to educate
about investing in mining stocks by explaining the jargon and discussing
stages of the mining cycle. The second event showcases the investment
potential of JSE-listed mining companies. Book at
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