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The consequences of adaptation: Equities

Evaluating Junior Mining Companies The JSE Ltd – an overview Noah Greenhill SGM: Marketing and Business Development. The consequences of adaptation: Equities. Primary markets again an attractive proposition New listings have overtaken de-listings for first time since 1998

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The consequences of adaptation: Equities

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  1. Evaluating Junior Mining CompaniesThe JSE Ltd – an overviewNoah Greenhill SGM: Marketing and Business Development

  2. The consequences of adaptation: Equities • Primary markets again an attractive proposition • New listings have overtaken de-listings for first time since 1998 • Growth in foreign listings 700 600 500 400 No. of listed companies 300 200 100 0 2000 2001 2002 2003 2004 2005 2006 *2006 figures are as at end December 2006

  3. A natural home for resources 2005 Resource Company Listings: • Chrometco Limited • Wescoal Holdings Limited • Tawana Resources NL • Oando plc • Miranda Mineral Holdings Limited • Sxr Uranium One Inc. • Wesizwe Platinum Limited 2006 Resource Company Listings: • Eland Platinum Holdings Limited • Diamond Core Resources Limited • Teal Exploration and Mining Inc. • Witwatersrand Consolidated Gold Resources Limited • Metmar Limited • Kumba Iron Ore Limited • GVM Metals Limited • Jubilee Platinum plc • Pamodzi Gold Limited • Anooraq Resources Corporation

  4. Nedsec Junior Mining and Exploration Index

  5. Recent relative performance

  6. Recent relative performance

  7. The consequences of adaptation: Equities • Capital raising opportunities suggest value for both issuers and investors R 120,000 R 100,000 R 80,000 R 60,000 Equity capital raised (R Million) R 40,000 R 20,000 R 0 2000 2001 2002 2003 2004 2005 2006 *2006 figures are as at end December 2006

  8. The consequences of adaptation: Equities • Continued strong performance in the secondary markets: • Average daily value traded up 68% (on 2005) • Average daily number of deals up 58% (on 2005) • Net foreign investment at all time high – over R73 billion R 10,000 35,000 R 9,000 30,000 R 8,000 25,000 R 7,000 R 6,000 Value traded - Millions 20,000 Avge daily R 5,000 No. of deals value traded 15,000 R 4,000 Avge daily R 3,000 10,000 deals R 2,000 5,000 R 1,000 R 0 - 2000 2002 2004 2006 2001 2003 2005 *2006 figures are as at end December 2006

  9. The consequences of adaptation: Equities • Significant value received by investors: • Market capitalisation at over R5 trillion – JSE remains in top 20 exchanges • Solid improvement in liquidity to 41% • FTSE/JSE All Share Index up 38% (from Dec ’05) R 5,000,000 50 Market Cap (R Billion) R 4,000,000 40 Liquidity (%) R 3,000,000 30 R 2,000,000 20 R 1,000,000 10 R 0 0 2000 2001 2002 2003 2004 2005 2006 *2006 figures are as at end December 2006

  10. Every American born will need…

  11. South Africa’s role in World Mineral Reserves, 2005 Number= World Ranking Percentage of World Reserves Source: USGS

  12. South Africa’s role in World Mineral Production, 2005 Number= World Ranking Percentage of World Production Source: USGS

  13. South Africa’s role in World Mineral Exports, 2005 Number= World Ranking Percentage of World Exports Source: USGS

  14. Contribution of Mining and Quarrying to value added, fixed capital formation(at current prices) and total national exports of goods, 1996 – 2005 Source: Department of Minerals and Energy: Mineral EconomicsSouth African Reserve Bank, 2005, pS113

  15. Resource contribution to market composition • FTSE/JSE Africa Index Series • Basic materials - 37.49% • Mining – 35.54% • General Mining – 24.67% • Gold Mining – 5.42% • Platinum and Precious metals – 5.43% • Mining companies represent 13.47% of companies listed and 31.19% of market capitalisation Figures are as at end December 2006

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