Minergy Limited lists on BSE | BOPA | Tebagano Ntshole
Minergy Limited has started trading on the Botswana Stock Exchange (BSE) with a total of 376 024 867 ordinary shares valued at P1 per share.
Speaking at the listing ceremony held at BSE premises, Minergy chairperson, Mr Mokwena Morulane said shares were listed to raise funds for the development of Masama Mine, located in the southern part of Botswana’s Mmamabula coalfield.
Mr Morulane said they planned to build an opencast coal mine with the potential to produce 2.4 Mtpa within 16 to 18 months of BSE listing.
The chairperson said Botswana had a potential of being a leader in coal mining, but the industry remained undeveloped although there were huge reserves.
Although the mining company was relatively new, Mr Morulane said they had assembled an experienced management team. He further said the company was committed to skills development, adding that through the mine they would also be addressing challenges of unemployment.
Masama Mine is to be situated on the southern edge of Mmamabula coalfields, where there are already railway and road infrastructure. Mr Morulane said they would have a low cost, open cast mine as ore was close to the surface. An investment in the mining company through purchasing of listed shares gives investors an opportunity to invest in anticipated cash generating coal mining operation, which presents a platform for further growth and creation of shareholder value.
The company’s Pre Listing Statement states that a subsidiary of Minergy Limited named Storm Ahead Trade and Invest, has been established to trade coal regionally. It is stated that the company is well positioned to take advantage of regional and international market trends by focusing on the 18 to 20 million tonnes per annum regional coal market with future expansion to international markets. Through the listing, the company aims to raise further development funding and it needs P200 million to develop the 347 million tonnes of high quality coal resource covering 120 square kilometres.
Another reason to list was to establish a platform for the future raising of development to realise the company’s growth plans. The listing also raises the regional profile of the company and also this makes it a more attractive investment opportunity for market participants and investors.
Company chief executive officer, Mr Andre Boje said they planned to list in the JSE and added that through his company, Botswana would be able to export power to South Africa.
The listing by Minergy now means total market capitalisation, or value of the stock market, additional P377 million. Before the listing, the market was valued at P420 billion with listed mining companies contributing P355.6 billion. ENDS