COAL and silica producer Petmin had received approval from the Reserve Bank to pursue a secondary listing on London's Alternative Investment Market (AIM), it said yesterday.
The next step would be to obtain shareholder approval for the move.
The Group said it expected to report in the next two weeks that headline earnings for the year to June rose to 4,9c a share, or about 51% on the previous year. Basic earnings a share would fall 2,6% to 16,3c a share. The difference between the two figures reflected acquisitions.
Petmin, which listed on the JSE last August, reported headline earnings of 3,24c a share at interim stage, boosted by the acquisitions of the SamQuarz silica mine and Springlake colliery.
SamQuarz is exposed to the fortunes of the ferrochrome market, where prices fell in the second half of last year, but have recovered in the first half of this year. It made a contribution to Petmin's profits in the first half by focusing on cost reductions and efficiency improvements.
Springlake colliery's income in the first half of Petmin's financial year was affected by the strong rand-dollar exchange rate although demand for anthracite remained firm, management said in February. It was expected development in the northern section of the colliery's underground operations would help to increase production in the third quarter of this year.
Most South African commodities exporters benefited from the weakening of the rand in May and June this year, and Springlake could be expected to follow this trend.
Petmin gave the go-ahead to start construction work on its Somkhele anthracite project in December. The plant is expected to be commissioned by November and produce its first saleable product in the second quarter next year.
Petmin's shares have traded between 137c and 139c in the past two weeks, almost double the 12-month low of 70c.
The company's biggest single shareholders are a broad-based black empowerment consortium with 32,3% and the New Africa Mining Fund, which is one-third held by black entities, with 26%. Management holds an effective 13% stake.
© 2009 Petmin Limited