Friday, December 15, 2017
Arné Frandsen

Arné Frandsen

Pallinghurst Resources

IT’S been time coming, but Christmas might have just arrived for long-suffering Pallinghurst Resources shareholders in the form of a maiden dividend which is due to be declared in March. And, while CEO Arné Frandsen would not be justified in breaking out his Santa Claus outfit just yet, he can at least breathe a sigh of relief that some of his optimistic predictions on investment delivery made over the past decade are finally starting to happen. It’s been a rough ride for Pallinghurst – the brainchild of Brian Gilbertson and sidekick Frandsen – which briefly touched 900 South African cents when it listed on the Johannesburg Stock Exchange in 2008 before collapsing to 161c from which it has recovered – sort of – to current levels. Various projects developed by the diversified junior which were supposed to deliver the goods for its investors by now - such as platinum producer Sedibelo Platinum Mines – have not done so. The breakthrough has come from arguably the most unlikely of Pallinghurst’s divisions which is steel-making materials. Pallinghurst is expecting a $10m dividend from its 18.45% investment in Jupiter Mines which holds a 49.9% stake in Tshipi Manganese Mining. The bulk of that could be paid out in a maiden dividend “subject to there being no material adverse change in market conditions”, according to Frandsen.


He’s Danish – not a “Norwegian nobody” as infamously described by Aussie roughneck entrepreneur, Michael Kiernan, during the battle for control of Consolidated Minerals in 2007 – and holds a BA LLB as well as a Master in Law degree from the University of Copenhagen. He started his business career in investment banking in London before moving into mining as CEO of Incwala Resources in 2004 and teaming up with Gilbertson to form Pallinghurst in 2006.

“Each of our investments will be well positioned to realise significant value.”