Tuesday, September 21, 2021

South Africa's junior mining dearth result of unintended consequence – AmaranthCX - Creamer Media's Mining Weekly

Last updated Tuesday, September 14, 2021 10:10 ET , Source: NewsService

AmaranthCX director Paul Miller interviewed by Mining Weekly's Martin Creamer. Video: Darlene Creamer.

JOHANNESBURG (miningweekly.com) – South Africa’s junior mining dearth is a result of savings no longer flowing through to primary capital raising and stock exchange listings, as the Jacobs Committee expected them to do.

The unintended consequence is that there are no longer small investors for small companies. This has negatively affected retail investor numbers and liquidity in smaller stocks in general and junior mining stocks in particular. (Also watch attached Creamer Media video.)

The Jacobs Committee expected the flow of funds into institutional savings would lead to an increase in the number of listed companies and an increase in the primary capital raising on the JSE. But that has failed to happen. Instead, the increase in funds into the institutional savings industry has gathered overwhelmingly at the big end of the stock exchange.

South Africa's R9-trillion worth of savings are not flowing through to primary capital raising and listings of new companies, which is a radical departure for a JSE that once had half of all the world’s mining market capitalisation listed on it.

What many are most concerned about is why so few new mining companies are listing on the JSE.

Take, by way of example, empowered mining investment company Ntsimbintle Holdings, headed by chairperson Saki Macozoma. This unlisted South African manganese miner grabbed the headlines in April by...

Read Full Story: https://www.miningweekly.com/article/south-africas-junior-mining-dearth-result-of-unintended-consequence-amaranthcx-2021-09-14

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