Charlotte Mathews
17 July 2008
Johannesburg — PLATINUM processor Braemore Resources' shares hovered at 92c after its debut on the JSE yesterday, its price set initially by London's AIM market, where it holds its primary listing.
Only 20 000 shares changed hands on the JSE in two deals.
Braemore (BRE) did not issue any new shares in SA but made 60-million - or just under 8% of its 790-million issued shares - available through a scrip lending arrangement.
On AIM, the shares are highly liquid and by late afternoon Braemore had shed 4% to 5,75p on a trading volume of more than 3,7-million shares.
Corporate development executive David Russell said Braemore had visited institutions in SA ahead of the listing and they had expressed interest in the company, which would facilitate future share issues. The JSE listing would give Braemore visibility in a market which understood platinum companies.
Earlier this month the company raised about R100m in London, part of which would be used to order long-lead items to build its first smelter.
Russell said the bankable feasibility study on the 10MW smelter, capable of processing 80 000-100 000 tons of platinum group metal (PGM) concentrate a year, should be completed in the current quarter.
After that Braemore would consider its capital requirements.
He could not give an estimate at this stage of the cost of the smelter, but said it could be in production by the end of December 2010.
Braemore's smelter will use new technology for platinum processing called ConRoast, developed by local technology institution Mintek. The technology is more environmentally friendly than that used by existing platinum smelters and is not affected by the high chrome content of certain types of ore, which presents problems for existing smelters.
Braemore has been testing the technology at a pilot plant in Randburg producing 20 000oz of PGMs in alloy and has identified a site in Rustenburg, for which it has applied for envi- ronmental approvals, for the first smelter.
Russell said Braemore's long-term objective was to build its smelters on the eastern and western limbs of the Bushveld complex, as well as the Platreef, which is in the northern section. It aims to have the capacity to produce about a million ounces of PGMs a year.
It planned to enter into alliances with black empowerment groups offering "influence, ounces and cash" and with platinum mining companies giving access to resources and projects at an advanced stage.
The company has already signed agreements with black empowerment company Tharisa Minerals, which holds prospecting rights in North West, and with Pan Palladium, an Australian-listed exploration company.
Braemore's major shareholders are Australian-based technology group Atomaer, with 40%, a Swiss investment fund specialising in platinum called Best Asset Class with 10%, and various European, UK and North American institutions.
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