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Wed 9 Mar 2005, 9:51 Yomhlaba, advisers and JSE defend AltX listing
Yomhlaba, advisers and JSE defend AltX listing

By Thabiso Mochiko

Johannesburg - In the continuing saga of Yomhlaba, the junior mining company, the JSE Securities Exchange confirmed yesterday that the company had had enough credentials to list on AltX last year.

AltX, the alternative exchange for small- to medium-sized companies, has particularly strict listing requirements. But Doug Doel, the JSE`s general manager of listings, said it was the opinion of the advisory committee of AltX that having just one contract was still sufficient reason for Yomhlaba to list.

Last week Yomhlaba halted trading because its sole contract, with Ingwe Coal, was cancelled. Ingwe, a subsidiary of BHP Billiton, cancelled the contract following allegations that Yomhlaba conducted illegal and unethical practices.

The contract allowed Yomhlaba to re-treat coal dumps from Ingwe`s mines in Mpumalanga.

The cancellation led to Yomhlaba`s voluntary suspension after just three months on the exchange.

Yomhlaba said on Monday that it was busy with legal proceedings that would help it obtain evidence related to Ingwe`s allegations.

Johan Jonck, Yomhlaba`s financial director, said yesterday that there was no further update.

James Hinton, an adviser from River Group, Yomhlaba`s designated advisers, said Yomhlaba would wait for the alleged proof by Ingwe before taking further steps.

Since Ingwe was the only source of income for Yomhlaba, questions were raised about why it was allowed to list. Hinton said the listing had been expected to open the company up to new opportunities.

He said Yomhlaba would be able to enter into new business activities if it and Ingwe were unable to resolve the matter. The company had cash on hand of R19.5 million.

Hinton said the company was interested in buying into technology used to re-treat the coal dumps.

`Yomhlaba`s shareholders fully support the company and are confident that the company will get other business,` he said.

Yomhlaba told the JSE that it had fixed assets of R37.5 million. 

The New Africa Mining Fund owns 50 percent of Yomhlaba, 29.7 percent is held by empowerment partner Matjoli Resources and 20 percent is being warehoused by the fund while suitable empowerment partners are sought. 

Published on the web by Business Report on March 9, 2005. 
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