Saturday 29 September 2007

Alexander Forbes to De-List (10 July 2007)

Alexander Forbes Financial Services has devised a scheme to enable shareholders to re-invest in the firm when it ceases to be a public company on July 25 and subsequently de-lists.
The move follows reports that it is to be bought by a consortium led by Actis Capital, a South African private equity fund, for P8.4 billion (approximatelyP7.4 billion).

Peter Moyo, the South Africa-based Group Chief Executive Officer for the financial advisory firm, said there are perceptions that shareholders, including Allan Grapy, "will be running away from Alexander Forbes".

"Forty-eight percent of shareholders wanted a reinvestment option. We are going to list an instrument of quasi Alexander Forbes," Moyo said.

According to the South African financial press, the reinvestment option follows threats by shareholders that they will not sanction the buyout unless the company presents them with a reinvestment option.

The listed vehicle will hold 26.5 percent in the financial services company.

Moyo says the decision to sell Alexander Forbes also follows concerns over perceptions that the group's share price was going to go down.

"Then, there was a perception that most of the shareholders will sell. They thought the value of the company was at an all time low.

"It has nothing to do with the management or the reports; it is a pure investment decision," he said.

But Moyo assured the pension fund industry that after the de-listing, Alexander Forbes will not change the way it deals with its clients.

The group, which advises the pension fund industry, currently has R150 billion (about P132 billion) in assets under its management.

Apart from South Africa, the group is also a public company in Botswana and Namibia.

Past liaisons haunt Fund investigators (24 July 2007)

The South African company, Jacques Malan Consultants and Actuaries JMCA is already attracting suspicions, even before it can finish their investigation on the entire structures of the multibillion Pula Botswana Public Pension Fund, (BPOPF).

The Registrar of Insurance and Pensions Wilfred Mandlebe appointed JMCA recently to investigate BPOPF after a tender in which they beat three fellow South African companies, Gobodo Forensic Services and Ramathe Fivaz Forensic.

Industry players say that JMCA may not be objective in their findings because they have an interest in the Fund and have on many occasions tendered without success to provide service to BPOPF.

They tried in 2001 when BPOPF started but were beaten to the race by a local company- Actuarial Solutions, which has since been bought by Deloitte and Touché Assurance and Advisory Services. JMCA allegedly tendered again this year, and were once again beaten by Deloitte, who retained the portfolio.

Industry players say that JMCA’s earlier bids to BPOPF place them on a position that borders on a conflict of interest, including a likelihood of “sabotaging” other service providers, by virtue of having access to privileged information.

A member of JMCA management team, Joanna Legutko admitted that they have tendered three times for Asset Consulting services and once for Actuarial Services with BPOPF, because they regard BPOPF “a potential client.”

However, she said they had not “obtained any privileged information as a result of the tenders we submitted,” and that they are therefore not under a conflict of interest in the present investigation.

She admitted however that “a conflict may be possible in future, should the BPOPF go out to tender again. We may need to carefully consider which services, if any, we are able to tender for, and appraise the BPOPF of any conflict of interest that may arise,” she said.

Industry players like Deloitte & Touché Assurance and Advisory Services, who are the Funds Actuaries, and Alexander Forbes Asset Consultants are seen as JMCA’s potential competitors, and fear that the investigation may be targeted at them.

Legutko admits they do compete with these companies but defends their appointment on the basis that the firm chosen to investigate the BPOPF needs to have “considerable expertise in the field.”

“We do not generally compete with Deloitte & Touché, as they are not active in the South African market where we primarily operate. However, in Botswana we do provide the same services and would view them as a competitor. We also compete with Alexander Forbes in the Asset Consultant business,” she admitted.

She added: “We realise this is the case and, would be very careful about future tenders we might be requested to submit to the BPOPF, given as we will have previously evaluated the services of these competitors and therefore a conflict of interest is possible,” she said.
She explained that the investigation is being led by Mike Codron, an independent external Actuary, whose judgment, she said, is “particularly unaffected” by any issues of competition.
But BG News Investigations shows that Codron is a former employee of Alexander Forbes RSA, and has fallen out with the company after it was involved in “bulking” or “secret profits” in which they illegally took money from their clients’ bank accounts over the period 1996 to 2004. Alexander Forbes RSA has a subsidiary in Botswana.

According to Legutko, Alexander Forbes RSA has admitted that they acted incorrectly and has since put up a reserve of R500 million to repay clients. There is a dispute over the amount because Alexander Forbes is only prepared to repay the money, net of corporate tax, which would distort the position of the fund had the illegal transactions not happened.

“ Mr. Codron, acting on behalf of one of his clients, has disputed this and requests that the fund be placed in the same position that they would have been in but for the actions of Alexander Forbes. The Financial Services Board is on record to state that they agree with the position of the fund. That is the extent of the disagreement between Mr. Codron and Alexander Forbes,” said Legutko.

But the biggest blow is that JMCA along with over 20 parties, including Alexander Forbes, Sanlam and others, is involved in an ongoing lawsuit in South Africa involving improper handling of pension funds.

Legutko defends her organisation thus: “Our organisation has provided Consulting and Actuarial Services to clients for over 11 years. One of these clients, the Picbel Pension Fund, to whom Jacques Malan served as a consultant in 1996, is currently part of an investigation, which involves inappropriate movements of surpluses between pension funds. It is our view, and also that of our senior counsel, that our involvement was limited in this matter, and we have assisted the authorities with this investigation.”

She said in any case, the Registrar had been informed about this before he appointed them to investigate. Other queries leveled at JMCA are that they are allegedly conducting the investigations outside the Terms of Reference by investigating the Fund Service Providers, which conduct is not provided for in the Pension and Provident Fund Act.

It is alleged they are able to get away with this because at this stage, there is no legislation that governs the operations of the Retirement Fund Industry, as the structures of the Non Bank Financial Institutions Regulatory Authority Bill of 2006 are not yet in place. Alexander Forbes Botswana Managing Director, Paul Masie confirmed having been interviewed, but declined to comment on whether or not the interviews were procedural.

Current Price Information for Discovery Metals (DME)

Miscellaneous - Discovery Metals In Landmark AUD$11.4M Capital Raising to Advance Maun Copper Project in Botswana

Discovery has completed an institutional fundraising in Australia, Botswana and the United Kingdom raising AUD$11.4million before expenses. The funds raised will be primarily applied towards progressing DML's 100% owned Maun Copper project in Botswana through its feasibility stages.

Discovery Metals Ltd (AIM:DME) (ASX/BSE:DML) is pleased to announce that they have placed a total of 31.6 million shares at A$0.36 (£0.145) to raise a total of AUD$11.38 million (£4.58 million) (before expenses) from institutional and sophisticated investors in Australia, Botswana and the United Kingdom. The placement, which was handled by Capital Corporate Finance in Botswana and stockbrokers Fox-Davies Capital in London, was made pursuant to DML's 15% placement facility undersection 7.1 of the ASX listing rules and a pre-placement approval granted at the Company's recent General Meeting of Shareholders held on 30th August 2007.

Funds raised from the placement will be applied towards completing pre-feasibility and feasibility studies on the Maun Project and for on-going corporate costs.

Discovery Metals' Managing Director, Mr Jeremy Read, said that the financing, which was carried out at the prevailing market price for DML shares, provides a solid financial platform for the Company as it progresses with its pre-feasibility study of the Maun Copper Project in north-west Botswana."This is an excellent result for Discovery. We have gained the support of a number of high quality Botswana and UK investors, as well as a number of Australian investor groups, as we gear up the Company's activities on potential project development studies and ongoing exploration at Maun," Mr Read said.

"Discovery now has the financial resources to complete pre-feasibility and feasibility studies on the Maun Project and consequently we are progressing the pre-feasibility study as quickly as possible," he said.

Discovery Metals Limited - Annual report & accounts

Annual report & accounts (28 September 2007) for DISCOVERY METALS LIMITED

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2007
A complete copy of the Financial Report for the year ended 30 June2007 is available on the Company's website

THE BOARD OF DIRECTORS
The names of the directors of Discovery Metals Limited in office at any time during or since the end of the year are:
  • GORDON GALT (Date of Appointment 09.05.07)B.Eng (Hons), B Comm, Grad Dip Applied Finance, MAusIMM, MAICD. Chairman Gordon Galt is a senior mineral resources executive and an experienced director with international mineral industry experience. During his career, Mr Galt has worked in senior management, technical and operational roles across a wide range of commodities, primarily in gold, coal, magnesium and copper/lead/zinc. Mr Galt is by training, a mining engineer withpost-graduate qualifications in finance. Both degrees are from the University of Queensland. During the past ten years Mr Galt has worked mainly as the Managing Director of companies engaged in the development and operation of large resource projects, and he has also spent a period of time in banking. Mr Galt is currently engaged in funds management and corporate advisory work. In previous roles, Mr Galt has demonstrated a track record of creating shareholder value through analysis of a company's strategic position, followed by implementation of appropriate corporate strategies, fund raising and motivating teamsof senior resource professionals.During the past three years Mr Galt has held the following listedcompany directorships: * Gloucester Coal Limited from April 2004 to August 2007 * Magnesium International Limited from August 2002 to January 2006 * Aquila Resources Limited from August 2007 to present.
  • JEREMY READ (Date of Appointment 30.05.03)BSc (Hons), MAusIMMManaging DirectorJeremy Read has 20 years domestic and international mineral'sexploration experience and was previously the Manager of BHP MineralsAustralian Exploration Team. He has extensive exploration experiencefor nickel sulphides and played a critical role in the discovery ofthe Kabanga North Ni deposit, in Tanzania. He is skilled indeveloping new technical teams, management of technical/specialistservice groups, project generation activities, risk management andmulti-commodity mineral exploration. During his employment with BHP Mr Read participated in the development of several significantstrategic exploration alliances. Mr Read has been the ManagingDirector of Discovery Metals since its incorporation in May 2003.
  • MORRICE CORDINER (Date of Appointment 30.05.03)LLB, ASIANon-Executive DirectorMorrice Cordiner has over 17 years experience in the Finance andResources industries both in the UK and Australia and has beeninvolved in the financing and management of a number of junior listedcompanies, predominantly in the mining sector. Mr Cordiner wasformerly an executive director of Waverley Mining Australia, a fundsmanagement group that specialised in investing in the AustralianResource sector. In this capacity he held a number of Boardpositions as Waverley's representative on its investee companyBoards.During the past three years Mr Cordiner has held the following listedcompany directorships: * Andean Resources Limited from 12 December 2003 to present * AIM Resources Limited from 16 May 2002 to 30 September 2004 * Golden Valley Gold Mines from 11 October 1999 to 14 January 2004.
  • JOHN SHAW (Date of Appointment 14.11.06)BSc (Geological Engineering), FAusImm, MCIM, FAICD, SMENon Executive DirectorJohn Shaw has over 40 years experience in exploration, developmentand operations of open cut and underground mines. He previously wasVice President of the Australian Operations of Placer Dome AsiaPacific Limited and Managing Director of Kidston Gold Mines. Mr Shawis a former Chairman of Gallery Gold Limited and Zimbabwe PlatinumMines Limited, and was involved with the development of the MupaneGold Mine in NE Botswana. Mr Shaw is also Chairman of LodestoneExploration Limited and Tri Origin Minerals Limited and a nonexecutive director of IAMGOLD Corporation and Quadra Australia PtyLtd.During the past three years Mr Shaw has held the following listedcompany directorships: * IAMGOLD Corporation from March 2006 to present * Tri Origin Minerals Limited from October 2003 to present * Lodestone Exploration Limited from May 2002 to present * Gallery Gold Limited from November 2003 to March 2006 * Kingsgate Consolidated Limited from September 2000 to March 2005.
  • TOM EADIE (Date of Appointment 14.10.03 - Resigned 09.05.07)BSc (Hons), Msc, FAusIMM, ASIAChairpersonTom Eadie has twenty-five years of experience within the juniorresources sector and technical to senior executive levels with majormining companies such as Pasminco, Aberfoyle Resources and Cominco.At Pasminco he was Executive General Manager Exploration & Technologyfor 11 years. He is a past director of the AusIMM.During the past three years Mr Eadie has held the following listedcompany directorships : * Austminex NL from 11 June 2002 to 11 June 2003 * Copper Strike Limited from 24 November 2004.
  • SCOTT REID (Date of Appointment 30.05.03 - Resigned 01.08.06)BSc, Grad Dip Sco (Geophys), ASIANon-Executive DirectorScott Reid has a background in mineral exploration (geophysics)worldwide, financial analysis of resource projects and companies andapplied finance and mineral economics. He is a specialist corporateadvisor and resources analyst in the small cap mining, mineral andenergy sectors. Mr Reid has extensive experience in mergers andacquisitions, rights issues, IPO's and other capital raisings,drafting and managing prospectuses, compliance process and investorrelations. He has been a director of a number of listed companies.During the past three years Mr Reid has held the following listedcompany directorships: * AIM Resources Limited * Andean Resources Limited from 12 December 2003 to 26 April 2005.
  • KARL SCHLOBOHMB Comm, B Econ, M Tax, CA, AICDChief Financial Officer (Date of Appointment 24.05.07)Company Secretary (Date of Appointment 01.08.06 - Resigned 24.05.07)Karl Schlobohm has over 15 years experience in chartered accountingand business advising and is a member of the Institute of ChartedAccountants and the Australian Institute of Company Directors. MrSchlobohm is currently a director of Prosperity Advisers, and alsoacts as the company secretary of the ASX listed Linc Energy Limitedand Agenix Limited, where he is also a non-executive director. He isalso the Chairman of the public unlisted Australasian Retail MediaGroup which specialises in the provision of in-store retail radio forSuper Cheap Auto, K-Mart and IGA stores throughout Queensland.
  • ROSLYNN SHAND (Date of Appointment 24.05.07)BA, LLB, FCISCompany SecretaryRoslynn Shand has a combined degree in Arts/Law from the Universityof Queensland, is a fellow of the Chartered Secretaries Australia andhas considerable experience in the company secretarial area. She hasbeen a company secretary for over 15 years for entities in thefinancial, agricultural and mining sectors.

During the year ended 30 June 2007, no ordinary shares of DiscoveryMetals were issued on the exercise of options granted in thatperiod. No person entitled to exercise the option had or has anyright by virtue of the option to participate in any share issue ofany other body corporate.Principal ActivityThe principal activity of the company during the year was mineralexploration, and in particular the continued development of its MaunCopper Project in Botswana.No significant change in the nature of the consolidated entity'sprincipal activity occurred during the year.Dividends Paid or RecommendedThe directors do not recommend the payment of a dividend for thisfinancial year. No dividend has been declared or paid by DiscoveryMetals Limited since the end of the previous financial year.Operating ResultsThe result of the consolidated entity amounted to an after-tax lossof $2,355,337 (2006: loss $3,565,662).Number of EmployeesThere are eleven (11) full-time employees employed by theconsolidated entity in Australia and Botswana. All other roles arecurrently undertaken under contracted arrangements, or by part-timeemployees.Risk ManagementThe Board is responsible for ensuring that risks, and alsoopportunities, are identified on a timely basis and that activitiesare aligned with the risks and opportunities identified by the Board.The company believes that it is crucial for all Board members to be apart of this process, and as such the Board has not established aseparate risk management committee.The Board has a number of mechanisms in place to ensure thatmanagement's objectives and activities take into account the risksidentified by the Board, and management reports to the Board formallyeach month in this regard.Where appropriate the Board engages independent experts orprofessional advisors to assist with the identification and/ormanagement of any key risk areas identified.Tenement ScheduleT.

No significant changes in the state of affairs of the consolidated entity occurred during the year.

After Balance Date Events

No other matters or circumstances have arisen since the end of thefinancial year which significantly affected or may significantlyaffect the operations of the consolidated entity, the results ofthose operations or the state of affairs of the consolidated entityin future financial years other than the following:

  1. On 18 July 2007, the company announced its intentions tocommence drilling to provide the data for a pre-feasibility study forits Maun Copper project in Botswana.
  2. The company made market announcements on 14 and 23 August2007, and 25 September 2007 regarding the potential expansion of theZeta and Plutus Prospects at the Maun Copper project site in Botswana.
  3. On 30 August 2007, the company announced its initialmetallurgical testing on the copper-silver mineralisation for its Maun Copper project produced positive results, confirming historicaldata and providing potential copper recoveries from the Zeta Prospectof 95%.
  4. On 30 August 2007, at the company's Extraordinary GeneralMeeting, shareholders approved the issue of 2 million options to MrGordon Galt, a director. The options were issued in two tranches of1 million each, and are eligible to be exercised any time prior to 1May 2010. The first tranche has an exercise price of 30 cents pershare, and the second tranche 35 cents per share.
  5. On 31 August 2007, the company announced that its initialmetallurgical test results for nickel sulphide mineralisation at itsDikoloti Nickel project in Botswana produced encouraging results.
  6. On 18 September 2007, the company announced that it hadsuccessfully raised $11.4 million across the Australian, Botswana andLondon markets for the purposes of funding the feasibility studiesfor its Maun Copper project in Botswana.
  7. On 20 September 2007, the company announced the appointmentof Mr Christian Heili as Manager of the feasibility studies for itsMaun Copper Project in Botswana.Future DevelopmentsOther than as referred to in this report, further information as tolikely developments in the operations of the consolidated entity andthe expected results of those operations would, in the opinion of thedirectors, be speculative and not in the best interests of theconsolidated entity.

Directors Meetings

During the year, ten (10) meetings of directors were held. As well as formal meetings of directors, executive and non-executive directors are in frequent communication by way of telephone.

Review of Operations

The directors continued to operate the consolidated entity in the best interest of the shareholders.

Financial Position

The net asset position of the consolidated entity at 30 June 2007 was $6,039,685 (30 June 2006: $2,179,222).The consolidated entity has written off $Nil (30 June 2006 :$1,979,534) on exploration during the year.

REMUNERATION REPORT

This report details the nature and amount of remuneration for eachdirector of Discovery Metals Limited.Remuneration PolicyThe remuneration policy of Discovery Metals Limited has been designedto align director objectives with shareholder and business objectivesby providing a fixed remuneration component and offering specificlong-term incentives. The Board of Discovery Metals Limited believesthe remuneration policy to be appropriate and effective in itsability to attract and retain the best executives and directors torun and manage the consolidated entity as well as create goalcongruence between directors and shareholders.The Board's policy for determining the nature and amount ofremuneration for Board members is as follows:The remuneration policy, setting the terms and conditions for theexecutive director was developed by the Board. All executives receivea base salary (which is based on factors such as length of serviceand experience), superannuation, options and incentives. The Boardreviews executive packages annually by reference to the consolidatedentity's performance, executive performance and comparableinformation from industry sectors and other listed companies insimilar industries.The Board policy is to remunerate non-executive directors at marketrates for comparable companies for time, commitment andresponsibilities. The Board determines payments to the non-executivedirectors and reviews their remuneration annually, based on marketpractice, duties and accountability. Independent external advice issought when required. The maximum aggregate amount of fees that canbe paid to non-executive directors is subject to approval byshareholders at the Annual General Meeting. Fees for non-executivedirectors are not linked to the performance of the consolidatedentity. However, to align directors' interest with shareholderinterests, the directors are encouraged to hold shares in DiscoveryMetals Limited. Furthermore, and subject to approval by shareholdersat a general meeting, directors are granted options to acquire sharesin the company.Performance Based RemunerationThe company currently has no performance based remuneration componentbuilt into director and executive remuneration packages.

Director and Executive Remuneration

Details of remuneration provided to directors who include the most highly remunerated executives for the year ended 30 June 2007,including payments made to companies.

Details of remuneration provided to the consolidated entity's next most highly remunerated executives for the year ended 30 June 2007, including payments made to companies.

Employment Contract of Executive Director

The employment conditions of the Managing Director, Mr J Read, areformalised in a contract of employment which is reviewed annually. This contract may be terminated by either Mr Read giving at least onemonth's notice in writing or Discovery Metals giving at least sixmonth's notice in writing. The Board gained approval at Discovery Metal's 2006 annual general meeting for Mr Read to participate in the issue of 3,000,000 unlisted options at various exercise prices

Environmental Issues

The exploration activities of the entity re subject to environmentalregulation under the laws of the country in which those explorationactivities are conducted. Currently, this includes Australia and Botswana. The environmental laws and regulations of each countrygenerally address the potential impact of the consolidated entity'sactivities in the areas of water and air quality, noise, surfacedisturbance and the impact upon flora and fauna. The directors arenot aware of any environmental matter which would have a materiallyadverse impact on the overall business of the consolidated entity.Indemnifying Officers or AuditorDuring or since the end of the financial year the company has givenan indemnity or entered into an agreement to indemnify, or paid oragreed to pay insurance premiums as follows:The company has paid premiums to insure all of the current directorsagainst liabilities for costs and expenses incurred by them indefending any legal proceedings arising out of their conduct whileacting in the capacity of director of the company, other than conductinvolving a wilful breach of duty in relation to the company. It isa condition of the insurance contract that the amount of the premiumis not disclosed.Proceedings on Behalf of the Consolidated EntityNo person has applied for leave of Court to bring proceedings onbehalf of the consolidated entity or intervene in any proceedings towhich the consolidated entity is party for the purpose of takingresponsibility on behalf of the consolidated entity for all or anypart of those proceedings.The consolidated entity was not party to such proceedings during theyear.

For further information:

Avis Car Rental Rates - Botswana

Botswana’s Miners’ Union Fights Repressive Companies, BCL LionOre and Debswana

Over the past two years, ICEM affiliate Botswana Mine Workers Union (BMWU) has faced obstacles that would have crushed any normal union. The National Executive of the union has witnessed two mining companies, Debswana and BCL, now an enterprise of global mining house LionOre, subvert the union’s national leadership, instigate a wildcat strike (BCL) in order to sack workers, withhold union fees from BMWU, and now start a rival, yellow union. But the BMWU hasn’t flinched, and has met every onslaught with a legal and dignified response to the overt divide-and-conquer tactics of the two companies.

On 3 November, the BMWU General Council met in session and reaffirmed the union’s role as the Mineworkers’ Union of Botswana. It also set in motion resolutions passed from the 2004 Congress, national union initiatives that had been stalled by the companies’ conduct, and followed through on a restructuring plan that gives BMWU four regions. However, interference from both Debswana, a joint diamond-mining company between DeBeers and the government of Botswana, and BCL continues. Debswana is actively pushing members into a rival union, and strong evidence exists that management is funding such a union.

“The Human Resources Department works around the clock to divert our members,” said BMWU General Secretary Jack Tlhagale. He said Debswana took a full year, until September 2006, to recognise the legitimate branch committee from Orapa, a major mining area of Debswana, and has withheld union fees due the BMWU. Tlhagale also said the world’s largest diamond-mining enterprise has unilaterally taken union dues money and used it for fees owed in an appellate court case the BMWU lost in April 2004.

Separately, the BMWU is still seeking justice for 461 workers fired in August 2004 when they went on strike, but the case is consistently being delayed in an Industrial Court. BMWU is convinced that the court is unduly influenced by the government and DeBeers in the matter.

BCL, a copper and nickel mining operation bought by LionOre only in 2005, has entered into an illegal collective agreement with dissidents inside the Selebi-Phikwe branch of BMWU, dissidents who have been jailed for failing to comply with multiple court orders to turn dues monies over to the national union. BCL has financially supported the jailed group of workers, and has refused to recognise a duly-elected Selebi-Phikwe branch committee that replaced the one consisting of some of the jailed workers. That recognition case is scheduled to be heard in Industrial Court on 20 November. Perhaps BCL’s biggest offence is that management led machine workers and spannermen into a non-sanctioned strike in order to sack them. Some 181 workers were fired after BCL management told them they have no union to represent them. “The general manager did this deliberately as a trap to eliminate them,” said Tlhagale. “He was fully aware that a legitimate union committee was in place, but he said they have no union because the union he recognises is in prison.” The BMWU’s National Executive Committee will continue to receive the support, guidance, and solidarity of ICEM and its affiliates as it continues it’s legal and moral course for justice and a dignity for all Botswana’s miners.

ABC Holdings Limited (Global Credit Ratings)

Wednesday 26 September 2007

Stillwater lined up for Norilsk PGM finds (24 September 2007)

US palladium producer Stillwater would be the logical company to develop any platinum group metals (pgm) opportunities that Norilsk Nickel might find in South Africa.

That’s the view of Stillwater CEO Frank McAllister interviewed on the sidelines of the Denver Gold Forum being held in Denver, Colorado.

Norilsk is the controlling shareholder in Stillwater owning 54.5% of the company. The Russian group is the world’s largest palladium producer which it mines as a by-product from its nickel operations.

Norilsk now has its feet on the ground in South Africa and Botswana through the recent takeover of Lionore Mining International. That gives it control of the Tati Nickel mine in Botswana as well as becoming the joint venture partner in African Rainbow Minerals’ (ARM's) Nkomati Nickel project.

In August, Norilsk director Tav Morgan told a press conference in Johannesburg that the group now had a platform in Africa from which to look for future projects. He declined to comment on whether Norilsk was specifically looking for a pgm play.

Interviewed at the 2006 Denver Gold Forum, McAllister had indicated Stillwater was looking at a possible move into South Africa as part of a diversification strategy.

Asked about developments since then, McAllister commented: "We were looking at a proposal that would have taken us into South Africa and other parts of Africa. It did not work out and that opportunity has gone away."

Questioned about possible involvement in any pgm project that Norilsk might find in South Africa, McAllister replied: "Norilsk took over Lionore primarily for its nickel assets.

"Should they find a pgm project then, logically, it should come to us because Stillwater is the vehicle which would be able to get the best market multiple out of such a project.

There is no guarantee that Norilsk would offer any pgm project it might find to Stillwater.

Asked specifically whether Stillwater was currently looking at a possible pgm project in South Africa with Norilsk, McAllister replied: “No comment.”

In his presentation McAllister predicted that the platinum price could “easily” reach $1,500/oz because of growing demand coupled with supply problems from the South African producers.
He also predicted the palladium price could rise to trade in a range between $400/oz and $500/oz before April next year.

Norilsk Nickel Group's unsolicited all cash offer of C$5.3bn (US$4.8bn) to acquire LionOre Mining International (24 September 2007)

Clayton Utz has acted as sole Australian legal adviser to Russian conglomerate the Norilsk Nickel Group on its unsolicited all cash offer of C$5.3bn (US$4.8bn) to acquire LionOre Mining International, the company's second major acquisition this year involving an Australian element.

The deal closed this month with Norilsk Nickel moving to compulsory acquisition of the target. It represents the largest investment by a Russian company outside Russia. Clayton Utz Corporate and Energy & Resources partner Susan O'Rourke led the firm's team on the deal, which brought together lawyers from the firm's Corporate, Finance and Competition teams including partners Michael Parshall, David Landy, Bruce Lloyd, Linda Evans, Graeme Gurney, Brad Wylynko, Paul Humphreys, Simon Brady, John Loxton, Matt Anderson and Faith Taylor and special counsel Stuart MacGregor.

Ms O'Rourke, whose global experience in resources & energy deals spans 25 years, said the transaction was an example of the increasing internationalisation of mining asset transactions, which required a co-ordinated approach to the provision of legal services.

"This acquisition of Australian mining assets shows the dominant trend of assets globalising in terms of their ownership, management and the interconnection of market. It also shows the increasing Russia-Australia trade linkage," said Ms O'Rourke. "It also illustrates the fact that Australian lawyers are definitely practising in a global marketplace, particularly in the resources sector. The challenge for Australian law firms is how they respond to and service clients in a global timeframe. It also means our knowledge has to be "global". At Clayton Utz, we meet this challenge by fielding tightly managed, client-focused teams with the commitment and capability to get the deal done.

"Norilsk Nickel is the world's largest producer of nickel and palladium, and a leading producer of platinum and copper. LionOre is Australia's third largest nickel producer, with operations in Western Australia, Botswana and South Africa.

Earlier this year, Clayton Utz represented Norilsk Nickel as Australian counsel on its US$408 million acquisition of the global nickel business of OM Group, Inc. The deal closed on 1 March 2007.

Tuesday 25 September 2007

FNBB to Open More Branches And Target Mining (27 August 2007 )

First National Bank of Botswana (FNBB) on Friday warned its competitors that for the next few months, it will focus on accelerating its expansion programme and on making itself more visible to the growing mining industry.

The warning was made as the bank unveiled its year-end results to June 30, 2007 that feature a healthy balance sheet that shows a total asset growth of 15.8 percent at P8.4 billion from P7.2 billion in the corresponding period last year.

The robust balance sheet is attributed to a 13.1 percent increase in advances driven by the bank's property finance division, retail banking and WesBank, FNBB's car finance division.
The bank's property division is currently at par with the Botswana Building Society (BBS) as a result of vigorous mining developments, particularly in the northern parts of Botswana.
The growth is also inspite of increasing costs the bank has incurred from an aggressive expansion programme.

At the unveiling of the results at the Gaborone Sun, hale and hearty executives said their expansion programme is meant to increase "our footprint" and to introduce new businesses to serve specific customers' needs.

"We are to open more branches; we will make an announcement soon," Danny Zandamela, FNBB Chief Executive Officer, told journalists.

"We will also make ourselves available to the mining sector," he added.

Under the current expansion programme, FNBB has already opened branches in the resort town of Kasane and Riverwalk Plaza in Gaborone and added Islamic Banking and Cellphone Banking to its products.

But Zandamela did not want to specify places targeted for opening more branches.

The new branches will pit FNBB against competitors like Barclays Bank that already has a rural area outreach programme through its Express Branches in places like Tutume and Tlokweng.
FNBB management disclosed that its expansion programme has resulted in cost escalations of 22.7 percent, although it said that is in line with projections and that the cost-to-income ratio remains the lowest in the market at 35.4 percent.

"However, this growth in operating expenses is in line with management expectations as it gives us access to new revenue streams and much of it is non recurring", the bank's financial statements say in part.

Bulls Set to Persist On BSE (18 September 2007)

Brian Benza
The Botswana Stock Exchange is the best performing investment vehicle on the financial markets on a year-to-date basis, growing at a higher rate than other investment instruments.
Buoyed by good company results and corporate restructurings, the DCI has powered on 57 percent, while the FCI has risen 23.91 percent and the All Share Index firmed by 25.38 percent.

The bourse performance has also beaten inflation in the review period.

In the first six months of the year, the annual inflation rate has fallen to the 7 to 8 percent range, rendering strong positive real returns for investors.

Investors on the bourse have raked in average real returns of close to 50 percent on the domestic board and over15 percent on the foreign counters.

Money markets rates, on the other hand, have been hovering around the 11 percent to 12 percent range in 2007.

Investment analysts reckon firm earnings posted by the listed counters gelled with various corporate restructurings, such as acquisition and expansion programmes, led to firm demand for share process in the period under review.

A recent report by Stockbrokers Botswana notes that the bulls that have been running for the past two years and are not showing any signs of slowing down. Most mining stocks on the foreign board have also performed exceptionally well, although analysts believe gains are now slowing as investors wait for exploration results on some reported copper deposits.

"More expectedly as explorations continue, trade in the mostly venture-capital mining stocks on the foreign dual-listed board has also increased, and by significantly higher margins," says the report.

On market capitalisation, as at the end of July 2007. FNBB was the market leader, anchoring 25 percent of the domestic counters, followed by Standard Charted Bank with 22 percent, and Barclays sitting in third position with 21 percent.

Although the bourse has been hit by two de-listings this year, Alexander Forbes and LionOre, there continues to be a strong appetite for shares.

Meanwhile, last week's trading on the bourse was mixed as the DCI fell marginally by 0.18 percent to close the week at 9754.56. The FCI, on the other hand, firmed by almost two percent powered by gains in heavy weight counters like Diamonex which surged 6 percent, AF Diamonds (1.04percent) and AF Copper (0.73percent).

Banks once again topped the decliners for the second week running with Standard Charted softening by 1.82 percent and FNBB shedding 1.52 percent.

This is despite the fact that for the six months to June 2007, commercial banks registered quality profits, which should be a positive development for their stocks.

Capital Securities

This is one of the three stock brokers in Botswana.

The three were recently mentioned as referenced in Botswana's Daily News under the title:
Invest wisely on wide range of savings dated "20 September 2007"

This was news from Serowe and read as thus:

Batswana have been advised to invest intelligently in the share or equity market by spreading their risks across a wide range of savings.

Marketing and Development Manager at the Botswana Stock Exchange (BSE), Ms Lame Masire, said in Serowe on Tuesday that to avert some of the risks involved in the share market, one needed to buy shares from various industries listed under the BSE.

Addressing the full meeting of the Central Distict Council, Ms Masire said the equity or share market was a section of the BSE where companies could raise money by selling securities that awarded part-ownership of their companies to members of the public.

"The shareholders need to take control of their investments, as they will be investing their money in those particular companies," she said.

Ms Masire spoke of more than 20 listed companies, which varied from the financial, mining, tourism, furniture and asset management where Batswana could buy shares from.

"It is always advisable to invest in various industries so that at any particular point when one goes down one will be able to benefit from the other." Ms Masire told the councillors about the benefits of investing in the share market, which she said was a profitable, hassle-free and stimulating way of making money.

"One receives a part of company profits in the form of dividends and one benefits from capital growth when shares and prices increase," she said. "Also one has a voice and votes in the running of a company." Although there were benefits attached to investing in the share market, she explained that there were also risks involved.

"Companies can fail, markets can collapse and prices can plummet." Botswana has only three broking firms.

"Stockbrokers Botswana, Capital Securities and Motswedi Securities are the only three broking companies that the public can approach if they want to buy shares from BSE and these companies are equipped to offer professional advice to the public at large," she said.

She explained Batswana should invest with BSE, as the listed companies constitute the cream of Botswana's private sector, which could go a long way in maintaining the current robust profitability record.

"BSE has a very good record of being reliable, efficient, competitive and has integrity in trading and settlement of transactions, as well as qualified and experienced brokers, who offer profession advice on which shares to buy or sell." The presentation followed a previous motion by Cllr Modisakgotla Makwati of Sunnyside that called on BSE to endeavour to keep the Central District Council abreast of its operations so that councillors would be able to inform their electorate about investment in the stock market. BOPA

Botswana Telecommunications Corporation (BTC)

Botswana Telecommunications Corporation (BTC) was established in 1980 to provide, develop, operate and manage Botswana's national and international telecommunications services. BTC is a parastatal in which the Botswana government holds 100% equity.

In 1996, an amendment of the BTC Act repealed the monopoly of BTC and introduced indirect competition through two cellular joint venture consortiums, Mascom Wireless and Vista Communications (now Orange).

The Act further established a regulatory authority and liberalised the market with particular emphasis on customer premises equipment and value added services, many of which are now in full competition to BTC.

Products and Services
The Corporation’s range of communications products and services include wired and wireless networks, basic voice telephony and voice messaging, Internet Protocol (IP) based networks and solutions, high‑speed Internet access, data networks, customer premises equipment (PABXs), optical fibre connectivity solutions and online directory services.

The Corporation's extensive range of services is built around its national networks comprising wired and wireless connections serving 140 000 (31st March 2005) customer access line connections.

The introduction of basic rate Integrated Services Digital Networks (ISDN) was undertaken to address the growing telecommunications requirements especially in the business sector. ISDN offers integrated speech, data, text and video services with end to end digital connectivity through a standardised access point. This is in addition to the benefits and convenience of faster speeds, improved communication quality and reduced operating cost.

BTC also offers value added services in addition to basic telephony. These include; call diversion and forwarding, three party conferencing, abbreviated dialing, call waiting, international and national call barring, alarm call, 0800 toll free services and voice messaging.

Data communications services by BTC are available through a managed data network on a point to point and point – to a multi point that can be provided to customers at their bandwidth requirements. These services are Frame Relay (BotsFrame), leased lines and ATM.

he Corporation also provides high capacity access to Internet for major corporate customers and Internet Service providers (ISPs). Points of presence (POPS) are now established in five centres around the country enabling Internet customers to dial at the cost of a local call. Click to read more about BTC products and services

Alexander Forbes

Financial Services
  • Contact: Paul Masie
  • Telephone: +267 390 9603
  • Fax: +267 395 7552
  • E-mail: masiep@aforbes.co.za
  • Address: 1st Floor Independence House, 203 Independence Avenue, Gaborone, Botswana
  • Postal Address: Private Bag 00410 Gaborone, Botswana

Alexander Forbes Risk Services Botswana (Pty) Ltd

  • Contact: Ian Hayzelden
  • Telephone: +267 390 8562
  • Fax: +267 390 8563
  • E-mail: ian@afrs.info.bw
  • Address: 1st Floor East Wing, Twin Towers, Plot 50370, Fairground Office Park, Gaborone, Botswana
  • Postal Address: Private Bag BO 292, Gaborone, Botswana

Sechaba Brewery Holdings Limited on SABMILLER.COM (29 November 2004)

SECHABA BREWERY HOLDINGS LIMITED

INCORPORATED IN THE REPUBLIC OF BOTSWANA(Registered number co 5271)

Highlights of unaudited results for the 6 months ended 30 September 2004
  • Turnover grew by 10.2% over prior year
  • Operating profit up by 14.2% from P12.5m to P143.4m
  • Comparable earnings per share increased by 38.4% to 46.8 thebe
  • Total dividend for the 6 months amounts to 48 thebe per share

Financial Performance.
Despite tight trading conditions, Sechaba Brewery Holdings Limited delivered satisfactory financial results for the 6 months ended 30 September 2004. Turnover for the group increased by 10.2% over the same period last year and operating profit grew by 14.2%.
To minimize the possibility of stock outs in the trade, which has been a problem in recent times, management took a conscious decision to increase stock levels. This led to an increase in inventory, but also improved availability, and contributed to the positive sales performance. We anticipate that inventory levels will normalize in the next quarter.
Comparable earnings per share showed a very healthy 38,4% improvement.

Sales Volumes.
Kgalagadi Breweries Ltd sales volumes grew by 3% compared to the same period last year. This was as a result of much work in the trade coming to fruition. The reduction in stock outs in the trade was a major contributor. The injection of affordability packs (300ml & 1litre glass) brought product within the financial reach of marginal consumers.

However Botswana Breweries Limited Chibuku volumes were below the same period last year. This was due to a large degree to a bumper season of indigenous fruit used to produce cheap homebrews and the effects of the entry of a competitor into the traditional beer market. We are hopeful that renewed focus will enable us to reverse this sales trend.

Dividends.
The Directors are pleased to announce the declaration of a second interim dividend of 25 thebe per share for the quarter, comparing favourably with the 22 thebe per share for the same quarter last year.

Accounting practise.
In order to comply with both the Botswana Companies Act and the International Financial Reporting Standards requirement, financial information has now been presented as required by Section 114 of the current Botswana Companies Act. This required the operations of the entities in which Sechaba Brewery Holdings (Sechaba) owns more than 50% of issued share capital be consolidated along with the operations of Sechaba.

In addition, financial information has been prepared inline with International Financial Reporting Statements, which in the case of Sechaba, require that Sechaba’s investments in Kgalagadi Breweries (Pty) Limited and Botswana Breweries (Pty) Limited be accounted for on an equity basis.

Prospects.
Trading conditions will remain tough for the remainder of the fiscal year, and in October 2004 the group took the innovative steps of introducing new brands and packs into the market, These include: a 450ml can pack for the three clear beer mainstream brands, the introduction of Miller Genuine Draft and the launching of Traditional beer variants. It is still anticipated that meaningful real growth on last year will be achieved over the full year.

Medical Rescue International Botswana Limited (Public, BOT:MRIB) on Google Finance

MRI Botswana Limited is a provider of pre-hospital emergency medical services (EMS) in Botswana. The Company provides ground and air ambulance services throughout Botswana, and is a supplier of medical goods and equipment for private individuals, homes, offices and public and private medical facilities. It offers a product, Roadside Assist for motorists. The Company also uses its infrastructure to provide call center services to a range of customers. Its wholly owned subsidiary company is North by West Investment (Pty) Limited.

Address: 20263 Block 3, Private Bag BR256, Gaborone, Botswana
+1-267-3901601 (Phone)
Wbsite: http://www.mri.co.bw/ News Releases, Financial Information, Corporate History/Profile, Executives, Products/Services

Medical Rescue International Botswana (MRIB) Limited on International SOS Botswana

International SOS offers expert personalized services for individuals and their families, and for corporations operating in Botswana, through our partner company, MRI Botswana Limited.MRI Botswana Limited serves companies in the region who want to look after the health and safety of their employees. These span a range of sectors including government, tourism, insurance , the forces, energy mining and infrastructure and parastatals including telecommunications companies.Our comprehensive range of services include:
  • Medical assistance - ground and air ambulance response, medical advice and medical referrals service.
  • Roadside assistance - we will arrange for assistance at the roadside, where the cause of the problem is either mechanical, electrical or tyre related.
  • Home Assistance – for a quick response to home emergencies. We will provide ground and air ambulance response, medical advice and medical referrals.
  • Metro - ground response, medical advice and medical referrals for firms and industries, including their customers during working hours.
  • Guestmed - air ambulance services for the tourist market. Costs cover interregional medevacs from Chobe to Kasane Primary hospital and North West to any medical facility in Maun.
  • Schoolsmed - ground response, medical advice and medical referrals for children, teachers and school support staff.
  • Thuso 911 (Corporate Emergency Medical Service) - ground response, medical advice and medical referrals for employees of corporate organizations.
  • First-aid training - we offer training in first aid for individuals, groups and corporate clients in the following disciplines: cardiopulmonary resuscitation , AED (automated external defibrillation), environmental emergencies and basic life support for healthcare providers. We also provide medical equipment according to clients’ specifications.
  • Medical Standbys - we provide onsite response to emergencies during events hosted by clients.
  • Fee for Service - air ambulance response, medical advice and medical referrals. Clients pay a minimum fee as retainer and only pay for services as and when an emergency occurs.

Call Center Business (Inbound and Outbound).
Our 24-hour call center in Gaborone coordinates service and care to its customers throughout Botswana. Back-up call centers are available in Maun and Francistown, MRI’s smaller bases. These call centers form the nucleus of our expertise, information and care. Each center is manned 24 hours a day, 365 days a year by a team of highly skilled medical personnel, medical staff and paramedics. We are a leader in pre-hospital emergency medical services, will provide cover for you, your employees or your family when in Botswana to any place in the world.Through our extensive network we can quickly respond to calls from our clients for assistance. Clients include:

  • Botswana Medical Aid Society,
  • Pula Medical Aid,
  • Botswana Public Officers Medical Aid Society,
  • Associated Fund Administrators,
  • Botswana Telecommunications,
  • Ministry of Health,
  • Mascom Mobile Company,
  • Botswana Defence Force,
  • AON Insurance Brokers and
  • African Life.

Medical Rescue International Botswana (MRIB) Limited Home Page

M.R.I. BOTSWANA LTD

VISION
The health care solution for the developing world.

MISSION STATEMENT
  • To be the leader in the design, development, implementation, management and delivery of health care
  • To create and retain all aspects of our “web of safety”
  • To provide shareholders with an adequate return on their investment
  • To pursue the highest ethical standards and client satisfaction at all times

Medical Rescue International Botswana (MRIB) Limited was incorporated in Botswana in March 1992 as part of the MRI Holding Group. The Company’s principal business is the provision of emergency medical rescue operations throughout Botswana.

MRIB Limited has accumulated over 12 years’ experience in ground and air evacuation, transportation and medical assistance to sick and injured patients in Botswana. The Company has its own hardware and infrastructure, and works in co-operation with similar organisations in the Southern African region and internationally.

The essence of MRIB Limited is the 24-hour Call Centre located in Gaborone, with support bases in Maun and Francistown. The Call Centre forms the nucleus of expertise, information and care. Our Call Centre is manned 24 hours a day, · 365(6) days a year by a team of highly skilled Nurses, Paramedics, Call Centre Agents and a Medical Doctors. The Call Centre can be accessed via the emergency numbers 911, 3901-601 and MASCOM 147.

Apart from the highly skilled personnel, MRIB Limited has available to it Rapid Response Vehicles, Ambulances and access to fixed wing aircraft or helicopters to ensure the most efficient and effective response possible. The inclusion of modern medical equipment ensures that the Company can adequately cope with serious medical conditions, whether they involve neonates, paediatrics or adults.

In September 1998, MRIB Limited became the first medical assistance company in the world to go public when it listed on the Botswana Stock Exchange (BSE). Today, the MRIB brand carries significant recognition in Botswana in the field of Pre-Hospital Emergency Medical Care (PHEMC). The Company has earned the trust of the diplomatic corps, corporates, medical aid schemes/societies and insurance groups, which form the bulk of our clientele.

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