Durban Roodepoort Deep Ltd (DRD), South Africa’s fourth largest gold mining company, said on Monday it sought full listing on the Australian Stock Exchange (ASX).
The company said in a statement this would be subject to the necessary waivers of the ASX listing rules and confirmation on other administrative matters.
DRD shares presently trade on the ASX as a foreign entity. In April this year the company was included — and has since remained –in the ASX top 100 companies by market valuation. It presently has a market capitalisation of AUS$1,6-billion.
Mark Wellesley-Wood, chairman and CEO of DRD, said a full listing would provide DRD’s 1200 Australian shareholders, who own nearly five percent of the company’s 177-million shares, with greater opportunities to trade. New Australian shareholders would also be attracted.
Wellesley-Wood said inquiries from Australian shareholders to buy or increase their shareholding in DRD showed a desire for increased liquidity in the stock on the ASX.
”DRD is one of the most traded gold stocks in the world with nearly 90% free float… and with its capital traded at about 150% per annum.
”Nearly 70% of the company is owned by private US-based shareholders who actively trade the company’s shares on Nasdaq.”
Wellesley-Wood said the full listing on the ASX would also help with any potential future acquisitions in the Australasian region. In Australasia, DRD currently owns the Tolukuma Gold Mine in Papua New Guinea and the Daylesford project in Victoria. Combined with its three projects in South Africa, DRD produces in excess of 1-million ounces of gold per annum.
The company is planning to increase production organically and through acquisitions in South Africa and Australasia. DRD recently announced a placement of 10-million new shares, primarily to shareholders in Canada and the United States, which raised $40-million.
While the bulk of the funds raised — $35-million — is being used to close out the company’s revenue hedge book, the balance will fund exploration at Tolukuma.
DRD is listed in Johannesburg, London, on Nasdaq, in Brussels, Frankfurt, and Paris, making the stock tradeable 24 hours a day. – Sapa