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» Ridge's platinum output profile improves
» Ridge gathering price momentum
» Ridge may sell more shares to Zijin
» ARM examining R700m furnace
» Ridge seeks land from Lonmin

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Ridge moves to secondary listing, production
Julie Bain
Posted: Mon, 17 Mar 2008

[miningmx.com] -- A secondary listing on the JSE by Ridge Mining, which will be producing platinum by the end of the year at its Blue Ridge project in South Africa, may not be too far off with the company saying on Monday the appetite to trade in junior miners on the JSE had improved.

South Africa has struggled to generate the same interest in junior mining company stocks seen on London's Alternative Investment Market or on the Toronto Stock Exchange but Ridge suggested the interest for such investment on the JSE is growing.

Ridge, which is listed on the AIM market in London, said, there has been "considerable change in the appetite for junior mining stocks in South Africa". This factor combined with the fact tax concessions previously available to some UK shareholders are now, in part, being removed and the progression of its first mine in South Africa means it is rethinking a secondary listing.
may now be a suitable time
Ridge's Blue Ridge project is expected to send its first platinum for refining by the end of the year, giving the company a cash flow and potentially improved profits means the company thinks it "may now be a suitable time to reconsider a secondary listing.”

What remains unclear is if Ridge will choose the JSE for its secondary listing or the Toronto Stock Exchange.

"Active consideration is being given to secondary listings of Ridge shares later this year," said Oliver Baring Ridge's chairman in a statement which accompanied the company's full-year results.

Ridge, as a junior miner developing projects, was in the fortunate position of being able to report a profit this year. It said today that in the 12 months to the end of December it earned $13.4m compared to a loss of $1.2m last year.

The earning are the result of the company selling assets it deemed to be non core such as its share in Fountain Ridge sold for $9.8m and its stake in Western Ridge sold in December for $5.1m.

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Ridge said that the sale of its holdings in other non core projects, Fonte Verde, Rooikraal and Redbush Ridge were complete but are subject to government consent to transfer the licences.

Earlier this month, Ridge commercial director Francis Johnstone said the company hoped the first concentrate from its new plant at the Blue Ridge project should be ready to transport to Impala's refinery by the final quarter of this year.

He said that the addition of the Millennium project resource, where Ridge completed the acquisition of the resource from Lonmin, may increase Blue Ridge's production from the expected 125,000 ounces of 4PGE a year to about 200,000 ounces in about five years.

Ridge has secured debt financing for Blue Ridge and funding for the project was "substantially complete" but it has been compelled as a requirement of the debt funding to hedge (to sell at a predetermined price in the future) a portion of the "early years" of production at the new mine. It did not give details as to the extent of the hedge.

Ridge said the current metal prices are over 100% higher than feasibility study assumptions for the Blue Ridge project in the Eastern Bushveld.

"The present prices for PGMs are high by historic standards and if prices were to maintain these levels the project would be able to repay the bank loans within a year of first production. It is therefore prudent, regardless of the requirements of the project lenders, to lock in a reasonable proportion of our production at current prices," said Baring.

Ridge is taking steps to ensure that its new project will have sufficient power given the energy shortage in South Africa. It said standby power generators would be installed before the metals plant at Blue Ridge was commissioned.