Well that caught myself and the company off guard. The company was also not aware of the sale. This makes me think that Investec is pissed off at JMS for some reason and likely exited after failing to get the no votes at the AGM. If they truly wanted to exit on good terms and price , they could have done it at the IPO (By selling a larger stake at 0.40$) or even contact the company to arrange a buyer. It is quite a stupid timing as you would ideally want to flog it off when a distribution is announced to get the best price so it feels very rushed and vindictive.
I reckon it is the direction JMS is going as a dividend paying, low risk model which im guessing Investec doesn't favour. They probably want JMS to take up debt, grow, consolidate operations surrounding the mine... which is what the CEO said they wouldn't do.
Would be curious to see who takes up the stake and if S32 is interested to take a 13% stake. I don't even think Investec approached S32 yet if they didn't even bother to notify the company of sale plans.
Will load up some more, i think the company will accelerate the release of distribution news or operation updates to counter this move that took them off guard.
In regards to the comments on South africa sovereign risk, the main talk was a 30% BEE interest to be imposed on mining companies. As Tshipi is already 37% owned by BEE and JMS not owning even majority share of the mine, this is not a problem for JMS.
DRAFT SOUTH AFRICA MING CHARTER OFFERS NO SURPRISES No impact envisaged for JMS On 15 June 2018 the South African government released its draft Mining Charter III, following on from the initial proposed revised draft from CY2017, and including the feedback that followed from the mining industry. Proposed 30% BEE interest already more than satisfied by Tshipi Our take is that there are no surprises and it is in-line with expectations, especially for existing mining right holders such as Tshipi e Ntle. The key feature is the previously flagged increase in Black Economic Empowerment (BEE) ownership interest to 30% from 26% for existing mining projects, as per the prior version of the proposed new charter. This threshhold is already satisfied for Tshipi, which has BEE interest of 37%. Another key plank is that the draft recognises the “once empowered always empowered” policy, which was backed by the High Court’s ruling in April 2018, and absent from the previous revised mining charter draft. This means that should the BEE interest fall below 30% for whatever reason (for example divestment by BEE partner, merger, or acquisition), there is no risk of the requirement to dilute non-BEE owners of the asset. The draft Charter’s stipulation of Board composition – 50% of which are to be black, of which 20% are women – is currently satisfied by the Tshipi e Ntle Board. Responses to the draft are invited before 27 July 2018, following which a finalised draft will be submitted for final government approval.
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