Wednesday, July 6, 2022

Tlou Energy could list if BSE liquidity improves

Tlou Energy, a Coalbed Methane (CBM) and unconventional gas explorer with interests in the central district, has hinted it could consider listing its shares on the Botswana Stock Exchange provided its liquidity improves.

Country Manager of Tlou Energy, Gabaake Gabaake, told Sunday Standard in brief interview late last year that his company has been reluctant to participate at the local bourse due to the fact that it is “illiquid”.

The company has 100 percent operating interest in nine CBM Prospecting Licenses in Botswana and an operating interest in three highly-prospective CBM Tenements in Zimbabwe.

However it has its shares primarily listed at the Australian Stock Exchange (ASX) although its principle assets are in Botswana, where it has the one of the most advanced CBM exploration projects in southern Africa.

“It is not something that I could say will happen in the short term, but we are observing the BSE performance and we will consider listing in the long run,” Gabaake said.

In 2013, the BSE’s P/E ratio continued to be the lowest in comparison to the Johannesburg Stock Exchange (JSE) and Stock Exchange of Mauritius (SEM), as has been the case since 2010.

The BSE data shows that its DCI has generally performed at par with the SEMDEX and outperformed the JSE ALSI and the MSCI Emerging Markets Index on a year to date basis.

Product Development Manager at BSE, Thapelo Tsheole said that as at 13 December 2013 however, the DCI has increased by 19.1 percent in comparison to the SEMDEX’s appreciation of 19.3 percent and ALSI’s appreciation of 10.03 percent.

During the same period, the DCI registered a positive return of 6.3 percent in US$ terms. However, the Pula depreciated by 12.1 percent against the US$. The SEMDEX appreciated by 14.7 percent in US$ terms whereas both the ALSI and MSCI Emerging Markets Index depreciated by 12.6 percent and 1.2 percent respectively.

Tsheole revealed that the DCI was the least hit by the financial crisis in 2008, falling by 24.4 percent to reach its lowest point in May 2009. However, it has also been the slowest to recover over the years subsequent to the crisis.

“Whilst the JSE ALSI has more than quadrapled its return from its lowest point since the financial crisis and the SEMDEX more than doubled since reaching the minimum point, the DCI has recovered 47.3 percent since 13 May 2009, the point at which the index bottomed,” Tsheole said.

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