Monday, February 26, 2024

First Quantum to list on Zambia’s Lusaka Stock Exchange

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Lusaka Stock Exchange

FIRST Quantum Minerals Limited (FQM) says it intends to list its Zambian depository receipts on the Lusaka Stock Exchange (LuSE) by the end of July.

Depository receipt is a negotiable financial instrument issued by a bank to represent a foreign company’s publicly traded securities. The depository receipt trades on a local stock exchange. It makes it easier to buy shares in foreign companies because the shares of the company do not have to leave the home state.

“First Quantum Minerals Limited, a global mining and metals company, is proud to announce its intention to list its Zambian depository receipts on the Lusaka Stock Exchange by July 2011,” the company said in a statement availed to the Mail yesterday.

“The listing is in recognition that Zambians are important stakeholders of First Quantum and creates another way for Zambians to identify with and participate in the growth of the company,” the statement read.

The statement says the company’s depository receipts have since been registered under the Securities and Exchange Commission for possible listing on the local bourse.

First Quantum’s common shares are listed on the Toronto Stock Exchange and on the London Stock Exchange. With this move, First Quantum becomes the first mining company to list on the LuSE.

The company, which owns 80 percent of Kansanshi mine in Solwezi in the North-Western Province, says the depository receipts will be listed on the local bourse and can be purchased only through Zambian stockbrokers by institutional and retail investors in Zambia.

“The depository receipts have been registered by the Securities and Exchange Commission of Zambia, and are expected to be listed on the LuSE and traded freely, like any other security listed on that exchange,” the statement added.

It says each depository receipt will represent a certain fraction of a common share of the company which will be determined prior to the listing.

The statement says the common shares underlying the depository receipts rank paripassu (on equal footing) with all other common shares of the company.

Renaissance Capital is acting as sole sponsoring broker of the listing, while the Bank of New York Mellon will act as depository in relation to the receipts.

It says First Quantum will carry out investor road shows in Zambia to engage with targeted audiences in a build-up to the listing.

The company says any potential investors are advised to exercise caution in relation to the listing and are advised to consult with their stockbroker, financial or legal advisor or other professional advisor before investing in the depository receipts.

First Quantum Minerals Ltd is a growing mining and metals company currently operating two mines and developing five projects worldwide.

The company currently produces London Metal Exchange grade “A” copper cathode, copper in concentrate, gold and sulphuric acid and is on track to become a significant nickel producer in 2012.

First Quantum’s current operations are the flag carrier Kansanshi Copper-Gold mine in Zambia and the Guelb Moghrein Copper-Gold mine in Mauritania.

[Zambia Daily Mail]

23 COMMENTS

  1. Good for the Zambian emerging market. LUSE need to drum up an aggressive campaign to increase the number of listed and traded companies. SEC also would help to market and increase even private owned enterprises begin trading on minimal scale.

  2. There is an opportunity for those shrewed Zambians Investors  that are taking advantage of the many opportunities that are opening up. Rather than blog day in day out insulting the MMD government and wishing they brought back your free ZCCM KAPOMPO, light bulbs, toilet paper, meat and mealie, open your eyes and take advantage of yet another opportunity thrown at your lap. 

    Surely as the sun rise from the East and sets in the West, your grand children will one day ask you what you did with the many opportunities you had. God forbid you will blame MMD and our great president RB, because your grand children wont buy that.

    Those that borrowed K 100 million to buy ZANACO shares, their money has more than doubled and they have repaid the debt. This is an opportunity.

  3. Instead of trading in Depository Receipts, the LuSE should request for a share certificate representing the actual shares to be transferred from New York into the LuSE Depository for trading.

  4. Find out,what has happened to the much talked about KCM DOUBLE LISTING.Is this not another ukulibona by the infesters?

  5. RB delays the elections because of what kind of projects
    He thinks he can buy the ballots through the gains on shares…

    Share price on toronto stock excahnge : cad120 =usd123
    $123=590,000 zmk !!!!

    who is able to buy these stocks even through zrd ???

    70 percent of Zambian People who live on less than $1 per day ????

    only rupiah clique, chiluba the thief , RB s son james and their cronies as Mr Capitalist, will benefit from these stocks

    ZAMBIAN STATE MUST GET FREE-CARRIED INTEREST in sentinel project
    FQM owes $450 M yet and that company has only paid $21M!!!
    That corrupt regime is bought and paid for by foreign mining companies…

    THINK ZAMBIAN STATE

    Zambian People must not be blinded by Mzungus, WaChina, Mhindis and our shady leaders

  6. Look, if you’re worried that you may not have enough cash to take part in this investment, talk to your bank or broker and they’ll advise you on the different options that are available. I was thinking that since this story has so many few comments, people are doing exactly that. Some banks may offer mutual funds…etc.

    Calling me names is not going to change your situation. If you refuse to take part in this opportunity, it is not because of me. All I am doing is exercising my democratic right to support the political party of my choice. Ever since Zambia became a democratic nation in 1991, I was accorded this right. I expected a grown man to understand this and at least address me with an ounce of respect but I guess some people never grow up.

  7. #6 MikeTe

    I bet you are a Communist, hell bent on inciting the state to take nationalise everything in the name of THINK ZAMBIA STATE. 

    And it is so typical of you communist using flawed mathematics to raise the emotional and irrational  temperature. I thought Marxism was dead and my jaw drops to see people like you still believing in the utopia that the state has to do everything for you.

    FACTS
    ======
    You claim share on Toronto Exchange is $123 and will be floated on LuSE at K590 000 per share? Where did you get that?

    Let’s look at a DUAL listed company today SHOPRITE on JSE it is about R100 = K70 000 and on LuSE it is K42000 = R 60

    How do you explain this?

    Stop spreading FUD ( Fear Uncertainty and Doubt ) among Zambians

  8. Well those of you who do not have money to invest should just shut the F… K up. I will definately be buying as much of First Quantum as i can with my OZ dollars while you waste your time debating the political merits of FQ listing…
    I bet you all white people in Zambia will invest while BLACK Zambians look….
    Some things we must accept are not for BLACKS too DULL to understand….

  9. Good afternoon

    These listings may appear to be a positive for Zambians but I think it is just another way of First Quantum to expand it’s shares by attracting yet more foreign investors.

    And the statement “The listing is in recognition that Zambians are important stakeholders of First Quantum and creates another way for Zambians to identify with and participate in the growth of the company” sounds like an appeasement and leaves me wondering exactly how many Zambians have the financial capacity to acquire shares in FQ?
    I don’t mean to dampen the spirits but when the World Bank released its annual forecast on the global economy, it predicted growth in the coming years but the forecast between rich and developing countries varied sharply. Read between the lines…

  10. @10 Ba Nine chale buying stock is the only way Zambians can partake in the mining industry and other sectors of the economy. I have never been a fan of Mr MMD Bootlicker but Iam going to unashamedly side with him on this one.Even businessmen who create companies like Bill Gates know that their company can only expand if they list it as public company. By the way Bill Gates only owns 7% of the company he created. The listing of FQM on LUSE will offer Zambian institutional investors like pension funds and individuals to own a piece of their minerals. Of course not everyone will buy shares. Even in Germany, USA Canada, Australia etc not everyone buys shares. FQM are doing the right thing. Other miners should do the same!

    • I see your point. I’m sure you’ve also heard of hedge funds. What will stop transnational giants or Saudi Arabian sheiks from buying practically all the stock shares in QFM and splitting them amongst themselves ? They can then resell these stocks to other investors and share the overall value, thereby eliminating the “small fishes” due to their large market shares. These are my fears… and I hope I’m not just waffling in the dark.

    • dude stop lying about Gates owning only 7% of Microsoft, where did you get that information from? Bill Gates own about 40% of Microsoft.

    • Iwe Kaponyas get lost! Just google search ‘ Microsoft shareholders’ and it will help cure your ignorance. ‘Gates owns 40% of Microsoft’…..My foot! Kaponyas I would advise you to concentrate on shouting slogans for your political party. Financial matters are beyond your comprehension! Try to read widely instead of plucking figures from thin air!

  11. This is another costmeic arrangement on LSE. People invested their little savings and pensions in Cetel/Zain what happened when the Kuris took over Zambians were cheated out and update the govt has done nothing too resolve the problem. The was only one lone voice from Timothy Nyirenda. FQM has a strategy to deceive Zambians by listing on the LSE to protect its new mining projects in Solwezi west nothing more. Why does the company not deposit proceeds from Copper and Gld sales in local banks. This would have have to bring the exchange rate down by 50%.

    • Why don’t you ask what the govt what it has done with the taxes that all mining companies have paid?

  12. @12 Why should the exchange rate even come down? Dont you realise that if this happens the exporters of products other than copper will suffer. Please dear Zambians sometimes when you’ve nothing to say it is better to just shut up. The level of economic illiterace in Zambia is just disgusting!

  13. of course its your right to support shady leaders and a corrupt gvt but you are going to cry because sata is going to kick out these thieves… :-)

    its your right to be a selfish guy who doesnt care about zambian people who live on less than $1 per day, who cannot buy these stocks and who cannot benefit from copper

    I have enough money to buy these subshares “zrd” (read FQM Pre Listing Statement on its website), to buy FQM common shares on TSX, Vedanta on LSE, ZCCM-ih on Luse or Euronext,…

    But how many zambian people will be able to buy these stocks ?? 5%, 2%, less than 1% ?

    Zambian state must get free-carried interest in mining projects and thus ALL zambians will benefit from mineral wealth

  14. I didnt know Botswana ( 50-50 JV), Chile (CODELCO) , Ghana, South Africa are communist states … LOL LOL

    I read FQM Pre Listing Statement

    Bootlicker, its possible to buy the subshares “zrd” and so you will get subdividends

    Thank Mzungus for their compassion !

  15. The ZRD’s are listing at the equivalent of $1.00, FQM has done a share split making their shares affordable to those in Zambia. A great opportunity for those of us who have extra money to play on the stock markets. The fact that the average Zambian survives on less than a dollar a day is neither here nor there, that is a governance and power debate.
    As long as the government keeps the people uneducated and ignorant, they will never be able to afford the opportunities such as investing in stock markets. Stocks and shares are a dicey game, you need to speculate to accumulate, but always know you are taking a risk when you buy any shares anywhere. Do your homework in advance!

  16. I don’t even understand how I ended up right here, however I believed this publish was good. I don’t know who you are however definitely you’re going to a famous blogger in the event you aren’t already. Cheers!

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