ARMGold, a South African gold miner that went public in Johannesburg in May, intends to float an offering of American Depositary Receipts (ADRs) early next year, Executive Chairman Patrice Motsepe said Wednesday.
ADRs are shares in non-US-based companies that trade on US stock markets.
”We are looking at increasing the trading float and also at improving our liquidity,” Motsepe said. He said the offer would help reduce the 52% stake held predominantly by his family’s trusts to around 30%.
ARMGold will produce more than one million ounces of gold this year from mines it acquired from big South African companies that could no longer mine them economically.
Because the mines are now running out of gold, ARMGold will need to find new deposits in the next couple of years, Motsepe said.
The five-year-old company has looked at acquisitions across Africa, but, for the time being, sees its best opportunities in South Africa, Motsepe said, adding that the company expects to announce a major transaction in the near future.
ARMGold has 95,5-million shares outstanding. – Reuters