“THE more things change the more they remain the same” runs the proverb and, in the case of Pallinghurst, that applies to the long-running complaint by shareholders about the persistent discount that the Pallinghurst share price has stood to net asset value (NAV). After a turbulent year, the share price at mid-December stood at 280 South African cents per share compared with an NAV of 436c calculated at June 30. That must be all the more irritating for Frandsen, given 2017 was the company’s 10-year anniversary and that its initial life-span was due to end on September 14. Instead, Pallinghurst took over coloured gemstone miner Gemfields and restructured its operations by converting itself into a “... long-life operating mining company” from its previous status as a “closed-end investment vehicle”. Frandsen has signed on as CEO for another five years as has chairman Brian Gilbertson, but Gilbertson has changed his status from executive- to non-executive. That should mean “the buck stops” with Frandsen from here on out. Latest moves to do something about that pesky NAV discount and deliver value to shareholders include a share buy-back scheme and seeking a primary listing on the London Stock Exchange.
LIFE OF ARNE
The smooth-talking and urbane Frandsen hails from Denmark. He holds a BA LLB degree as well as a Master’s in Law from the University of Copenhagen, while he has also completed postgraduate research and studies at Tokai University in Japan and Stellenbosch University. He worked for Goldman Sachs and JP Morgan and came to Johannesburg in 2004 where he quit investment banking to become CEO of BEE firm Incwala Resources. He teamed up with Gilbertson to create Pallinghurst in 2006.
- Web Address: www.pallinghurst.com