FQM’s listing not likely to benefit ordinary Zambians

[bingogo]

By Gift Chanda and Chiwoyu Sinyangwe
Fri 01 July 2011, 04:00 CAT [51 Reads, 0 Comment(s)]


ORDINARY Zambians are not likely to benefit from the planned “pricey” listing of 40 million shares of First Quantum Minerals, punctuating the hype that has characterised its maiden listing on LuSE, it has been learnt.

First Quantum Minerals which operates Kansanshi mine among its operations in the country is next week expected to list its shares on the Lusaka Stock Exchange, with its share price at Initial Public Offer priced at US$1, the highest initial price in the history of the local bourse.

Key analysts denounced the planned listing by First Quantum Minerals, saying at US $1 per share, it would require an ordinary Zambian to have a minimum of K50 million to participate through a broker.

There are no share transfers and the special offer to institutions and brokers ends today.

LuSE chief executive officer Beatrice Nkanza said Zambians may be sidelined from buying shares in the mining companies expected to list on the local bourse.

“Even as there is this interest by some mining companies to list, it is important to note that there aren’t enough Zambians with the capacity,” Nkanza said. “This is something the companies need to recognise.”

First Quantum Minerals which is a largest copper miner by output announced its plans to list on LuSE as it sought to grow its presence in that country.

First Quantum is already quoted on Toronto Stock Exchange. According to the company, “the listing will give Zambians a chance to identify and participate in the growth of First Quantum Minerals.”

The mine was in the process of developing the US $1 billion Trident Copper Mine in the same province.

First Quantum said earlier this month that it is planning to build a US $500 million copper smelter in Northwestern Province in order to ease costs and end over reliance on Copperbelt-based smelters.

First Quantum is also expected to invest at least US $350 million in expansion projects at Kansanshi in the next three years as it seeks to ramp up annual copper output to 400,000 tonnes by 2015.
Last year, Kansanshi produced 231,000 tonnes of copper.

[OlaV Ouafouaf]

Pour info et d'après un de nos forumeur,
vu le bas niveau de vie en Zambie, le "bon prix" (acceptable psychologiquement) d'une action serait de l'ordre de 500 kwacha (ZMK) soit 0,103USD.
L' action proposée est à 1USD soit 4.825 ZMK ... 9 fois plus (9fois Trop?)

[LesCrozes]

FQM listing to benefit Zambians, says Newall
By Business Reporter


FIRST Quantum Minerals (FQM) President Clive Newall has said the listing of the mining company on the Lusaka Stock Exchange (LuSE) is aimed at benefiting ordinary Zambians across the country.
Mr Newall said ordinary Zambians would benefit through the participation of the Zambian pension and investment funds.
“We deliberately targeted sophisticated investors such as pension and fund managers to protect those people for whom investment in relatively high risk equities is inappropriate,” he said.
FQM plans to list 40 million Zambian Depository Receipts (ZDRs) on LuSE as a way of giving Zambians a chance to identify and participate in the growth of the company.
The ZDRs would be solely listed on LuSE wherethey would be traded and regulated by the rules applicable to ordinary securities listed on that exchange.
He said the offer was exclusively available to Zambians and opened on June 20 and ends on Friday this week.
The planned listing by First Quantum on the local bourse has been hailed as a confidence to bolster the Zambian economy.

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