Look at para 11 "Sources say that local securities firm IJG Securities is also laying the groundwork for a secondary listing by Australia's Bannerman Resources, which owns the Goanikontes uranium deposit"
HAS ANYONE HEARD ABOUT THIS AS A LINKED ISSUE IS PARA 7
"Analysts say that the listings could gain the uranium firms points under a scorecard system which forms part of the broad-based black economic-empowerment (BEE) provisions for the mining sector expected to be introduced by government in the near future"
y: Felix Njini Published: 22 Feb 08 - 0:00
Australian-quoted Paladin Energy has listed on the Namibian Stock Exchange (NSX), becoming the fourth uranium firm to do so. NSX MD John Mandy says that uranium exploration companies listed on the bourse's Development Index (DevX) have added over N$7,4 billion to the N$1,1-trillion market capitalisation.
Paladin Energy, which is primarily listed in Australia and has a secondary listing on the Toronto bourse, owns Namibia's second uranium mine, the Langer Heinrich uranium mine, and the Kayekelera uranium project, in Malawi.
Paladin chairperson Rick Crabb says: "We are broadening our capital base, not only to Namibian investors, but also to the whole of the Southern African region."
Paladin also has operations in Australia.
Namibia's Finance Minister Saara Kuugongelwa-Amadhila says that listings by foreign firms provide an opportunity for locals to "invest in meaningful and highly rewarding ventures".
In the last four months, three junior uranium explorers have dual-listed om the NSX's venture-capital board, the DevX.
"Namibian entreprenuers should move out of the comfort of family businesses funded with own capital and bank loans into more modern types of business that are publicly listed and, thus, have access to a broader base of lower-cost capital," Kuugongelwa-Amadhila says.
Analysts say that the listings could gain the uranium firms points under a scorecard system which forms part of the broad-based black economic-empowerment (BEE) provisions for the mining sector expected to be introduced by government in the near future.
Canada's Xemplar Energy, which owns the Warmbad deposit, and Forsys Metals, which is developing the Valencia project, listed in October and December 2007 respectively.
Australia's Deep Yellow, which owns the Tubas deposit, listed in January this year.
Sources say that local securities firm IJG Securities is also laying the groundwork for a secondary listing by Australia's Bannerman Resources, which owns the Goanikontes uranium deposit.
Namibia, whose economy is strongly linked to that of regional economic powerhouse South Africa, is struggling to stem huge capital outflows, despite the economy's strong savings culture, Kuugongelwa-Amadhila says.
Namibia, Africa's largest producer of uranium, is home to Rio Tinto's Rossing mine, which supplies 8%of the world's uranium. Namibia has over the past years become the Mecca of uranium investors.
Paladin's Langer Heinrich mine has set a target of 3,7-million pounds of uranium yearly.
Output hit a target of 390 807 pounds of uranium oxide in the third quarter to December 2007 despite flagging problems which were experienced at Namibia's second uranium mine during the course of the year.
Langer Heinrich had sought to produce 650 000 lb of yellowcake for the six months to December 31, 2007, and has comfortably met the target, with 650 562 pounds of uranium being produced.
Crabb says that Langer Heinrich has started a $50-million stage-two expansion of the Namibian operation.
He adds that the Langer Heinrich deposit has an inferred and indicated resource of 105-million pounds of uranium oxide.
"We are sitting on a large orebody and we are talking of a mine with a life span of up to 25 years," Crabb says.
Paladin also says that it has already secured $167-million from Soiciete Generale Corporate and Investment Banking, Nedbank Capital and Standard Bank.
The Malawian project, Crabb says, is expected to come on stream in 2009
BMN Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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