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Mine Africa 2008

Mine Africa 2008. Noah Greenhill Senior General Manager: Marketing, JSE Ltd 4 March 2008. Agenda. Overview of the JSE – some facts and figures Main Board and the AltX Dual Listings. A brief history of the JSE. Founded in 1887 In 1995 : Open outcry floor trading

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Mine Africa 2008

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  1. Mine Africa 2008 Noah GreenhillSenior General Manager: Marketing, JSE Ltd4 March 2008

  2. Agenda • Overview of the JSE – some facts and figures • Main Board and the AltX • Dual Listings

  3. A brief history of the JSE Founded in 1887 In 1995: • Open outcry floor trading • Settlement 7 days later or more • Physical delivery of share certificates • Equities only 1995: Deregulation of the JSE 1996: Introduction of order-driven, centralised, automated trading system - JET 1997: Introduction of real-time news service for dissemination of price sensitive information - SENS

  4. A brief history of the JSE 1999: Formation of STRATE 2001: Acquisition of SAFEX 2002: Move to guaranteed, contractual T+5 settlement of equity trades 2002: Replacement of JET with JSE SETS (LSE trading platform) 2003: Launch of AltX 2004: Introduction of SRI Index 2005: Launch of Yield-X 2006: Listing of JSE on Main Board

  5. JSE as it is today • 5 Markets • Equities – listing, trading & regulation of shares, ETFs and warrants • Equity Derivatives – SSF, index derivatives, can-do options • Agricultural Products – maize, wheat, soya and sunflowers • AltX • Yield-X • Equities and derivatives clearing • Settlement • Own 45% of STRATE • Guarantee of equity trades • Information product sales • Technology services

  6. Some interesting facts and figures: Equities (Main Board and AltX) • Primary markets again an attractive proposition • Positive growth trend in new listings across both markets • Growth in foreign listings All figures are as at end December 2007

  7. Some interesting facts and figures: Equities (Main Board and AltX) • Capital raising opportunities suggest value for both issuers and investors All figures are as at end December 2007

  8. Some interesting facts and figures: Equities (Main Board and AltX) • Continued strong performance in the secondary markets: • Average daily value traded up 39% (on 2006) • Average daily number of deals up 45% (on 2006) • Net foreign investment positive at R63.3 bn All figures are as at end December 2007

  9. Some interesting facts and figures: Equities (Main Board and AltX) • Significant value received by investors: • Market capitalisation at nearly R6 trillion – JSE remains in top 20 exchanges • Solid improvement in liquidity to 45% All figures are as at end December 2007

  10. Introduction to AltX • AltX is the JSE’s exciting market for small and medium high growth companies • Provides an alternative for raising capital • Is operated by the JSE • AltX Philosophy: • Best practice model • Quality controls • Designated Adviser • AltX Advisory Committee • Directors Induction Programme (DIP)

  11. AltX facts and figures • Exceptional market performance over the last 21 months AltX: 4797 points Alsi: 28958 points All figures are as at end December 2007

  12. SA vs UK

  13. Dual Listing • Gain exposure to alternative shareholders. • Enjoy local knowledge, expertise and interest in your company. • Be able to use local shares for transactions. • Facilitate compliance with SA government charters on broad based black economic empowerment. • Access to the deep and alternative pools of capital relative to other African markets. • Keep African companies on the African continent.

  14. Primary Listing on the JSE • Must meet all the initial listings criteria – Main Board or AltX • Prepare pre-listing statement/prospectus – fully compliant with JSE requirements • Financial information must be prepared in accordance with IFRS • If it is a mining/exploration company – prepare CPR that complies with SAMREC • CPR will be reviewed by the JSE’s reader panel • JSE will be the primary regulator going forward – applicantmust comply with all JSE listings requirements

  15. Secondary Listing already listed on another exchange • Is it listed on a recognised exchange? • Must meet all the initial listings criteria – Main Board or AltX • Prepare pre-listing statement/prospectus – compliant with JSE requirements • The JSE will accept extracts of the financial information if it has been prepared in accordance with IFRS • The JSE will not insist on the financial information being signed-off/audited again for purposes of the listing documentation • Non-IFRS numbers – discuss with JSE – recon to IFRS • The JSE will not insist on a new CPR if it is a mining/exploration company and it has prepared a CPR within the last six months that complies with SAMREC/JORC/NI 43-101

  16. Secondary Listing already listed on another exchange • CPR will not be reviewed by the JSE’s reader panel • CPR must be included and there must be a statement by the competent person that there has been no material changes • If it is listed on a recognised exchange then that exchange will take the lead in the enforcement of listings requirements on a continuing basis

  17. Secondary Listing not listed on another exchange • Must meet all the initial listings criteria – Main Board or AltX • Prepare pre-listing statement/prospectus – compliant with JSE requirements • Financial information must be prepared in accordance with IFRS • Non-IFRS numbers – recon to IFRS • Financial information must be signed-off/audited for purposes of the listing documentation • CPR must be prepared if it is a mining/exploration company that complies with SAMREC/JORC/Canadian 43-101 • JSE’s readers panel must review and sign-off on CPR • If it is listed on a recognized exchange then that exchange will take the lead in the enforcement of listings requirements on a continuing basis

  18. Recognised Exchanges Main Board • LSE Main Board – regulated by the UKLA • Australian Stock Exchange • Toronto Stock Exchange – Main Board AltX • LSE Main Board – regulated by the UKLA • AIM • Toronto Stock Exchange – Main Board • Australian Stock Exchange

  19. Dual Listing AltX and AIM • AIM • Primary regulator • Sponsor • Profit forecast • DIP • Fungibility • SARB

  20. Conclusion • Straight-forward strategic approach: what do the issuer and the investor want? • AltX launched in response to identified market need – will continue to grow and develop the market • No of initiatives in the pipeline for 2008: • Promotion of cash-settled future on AltX 15 Index • Investigation into launch of AltX 15 exchange traded fund (ETF) • Business development, business development, business development: Local and International (including focus on Africa)

  21. Questions?

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