Sunday, November 29, 2020

BSE suspends trading of Shumba shares on failure to submit results

The main committee of the Botswana Stock Exchange (BSE) this week suspended the trading in securities of Shumba Coal Limited, the local mineral exploration company, on failure to submit its full year financial results for the period ended in June 2013 on time.

BSE’s Listings and Trading Manager, Tsametse Mmolai, said the shares will remain suspended until the company makes the results announcement, although one official viewed the matter as a ‘halt’ rather than ‘suspension’.

According to the listing rules of the BSE, quoted companies are required to file Annual General Meeting (AGM) notices and distribute annual financial statements within six months after the end of each financial year and at least 21 days before the AGM’s date.

The rules further state that should non-compliance reach the seventh month, a firm’s listing will be suspended and the BSE main committee convened to consider the continued suspension or termination of the company’s listing.

Shumba Coal Finance Director Thapelo Mokhathi said the suspension was a result of ‘confusion’ on the interpretation of listing rules and requirements on their part as a company.

He revealed they are busy finalising everything so as to be able to furnish the local bourse with the audited results.

“We are hoping by the end of next week we shall be in a position to submit audited results to the BSE and all they could require. This is a matter that should not make investors or anyone panic as everything is under control”. Mokhathi said this should be viewed as a ‘halt’ rather than ‘suspension’ of trading of the company’s shares.

Shumba Coal Limited earlier this year satisfied all of the requirements for a Venture listing on the Botswana Stock Exchange’s Venture Capital Board (VCB) which resulted in a subsequent commencement of trading of its shares on the VCB on the 8th of April this year.

Prior to the listing, the company placed 7.1 million shares with private investors at a price of one Pula per share, adding to the more than P24.6 million raised 18 months before the listing. In total, the company which enjoys majority-citizen shareholding listed 168.8 million shares on the BSE at an opening price of one Pula. Its share price was valued at 106 thebe when it last traded.

The junior miner holds rights to the 247 km2 Sechaba Project near Palapye, which is estimated to contain one billion tonnes of good quality export thermal coal. Shumba Coal is also planning further billion-tonne coal acquisitions elsewhere in Botswana.

Apart from BSE listing, the company executives earlier this year expressed interests to also list at the Mauritius Stock Exchange. The move will make the local company to be the first natural resources company listed in Mauritius and the first dual listed company between the BSE and SEM.

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Sunday Standard November 29 – 5 December

Digital copy of Sunday Standard issue of November 29 - 5 December, 2020.