Johannesburg, South Africa — MININGREVIEW.COM — 09 November 2010 – South African mining company Royal Bafokeng Platinum (RBP) enjoyed a strong stock market debut, after raising US$440 million (R3 billion) in South Africa’s second-largest initial public offering this year.
Shares in RBP “’ a black-controlled, mid-tier producer of platinum group metals “’ closed at R64.90 yesterday “’ 7.3% above their R60.50 issue price.
Nearly 6 million shares changed hands, making it the third most actively traded stock on the Johannesburg Exchange’s main board, according to Thomson Reuters data.
“Investors were likely responding to the miner’s strong growth prospects,” said Vestact analyst Sasha Naryshkine. “They are looking over the next 10 to 15 years to produce at least 1 million oz pa of platinum “’ a fourfold increase in production. So if you have this stock you are going to have earnings for the better part of a decade,” she added.
RBP is a unit of Royal Bafokeng Holdings (RBH), which manages commercial assets for the Royal Bafokeng Nation, a community of black South Africans that owns 1200 sq km in one of the world’s biggest platinum regions, the Bushveld Complex.
Reuters reports that RBP’s closing price put the market value of the company at R10.7 billion.
Chief executive Steve Phiri said the company was not thinking of issuing more capital soon. “We do not intend going to the market for at least four years because we do not know where the market might take us.”