Continental Coal, the South African thermal coal producer listed on the ASX and AIM markets is looking to list on the JSE in the last quarter of this year.The news follows directly on the back of Vlakvarkfontein mine’s stellar production performance and is a refreshing announcement for South Africa’s mining sector and the JSE. This is the first and only mining IPO in 2013 so far. The proposed listing serves as a strategic initiative to provide the platform for Continental to enhance its growth prospects, facilitate investment by African domiciled investors and to augment stakeholder relations in South Africa in more a proactive and effective manner as it accelerates its growth profile, including the proposed development of the De Wittekrans mine, the company’s planned fourth thermal mine coal mine. “Being listed in the JSE is an important milestone for Continental, not only because it links us directly to the financial markets in South Africa, but also allows stakeholders in our business to participate in the growth of the company,” Continental Coal CEO Don Turvey says.
Investec Bank has been appointed by Continental as sponsor and financial advisor for the proposed listing and is the company’s broker on the AIM market.“African institutional and sophisticated investors are very strong supporters of African focused resources companies, particularly those in production, and in most instances are more comfortable trading on the JSE than other exchanges. The strong performance of a number of South African listed thermal coal companies over the past 12 months demonstrates the level of support possible and the recognition of the strength of South Africa’s coal sector,” Turvey continues. The proposed Q4, 2013 listing Q4 is subject to the release of an Independent Competent Persons Report on the company’s mines and development and exploration projects that is being prepared by Venmyn Deloitte, as well as receipt of the requisite regulatory approvals.