PETMIN, whose shareholders formally approved its change of name from Petra Mining at this week’s meeting, has moved rapidly in the past four years from gold mining to silica and coal.
The Group’s early life as a listed entity was as Petra Granite but it became a gold miner in the 1990s.
It sold its gold mines to EAGC Ventures in 2002, which sold them on to Bema Gold. A new management team that came in during January 2004 decided to focus the company on metallurgical industries.
Since January 2004, Petmin’s share price has more than trebled from 30c to yesterday’s 110c. This is likely to be because of a dearth of quality coal mining companies on the JSE, which means few opportunities for investors to participate in the strength of coal prices and the planned expansion at Richards Bay Coal Terminal.
The listing of what is provisionally called Newco will help tackle that gap and it might affect growth in Petmin’s share price by diverting investor interest.
Still, Petmin’s shares are underpinned by the fact that the New Africa Mining Fund is a substantial shareholder. That presence did not help Yomhlaba, but Yomhlaba was hit by a specific event, namely a dispute with its major customer, Ingwe.
Petmin said yesterday it was in negotiations with an “internationally listed company” and, although that could mean simply a major offtake agreement, if it introduced another substantial shareholder it would be positive for the Group’s development opportunities and funding.
© 2009 Petmin Limited