Frankfurt and Australia Stock Exchange listed lithium and battery minerals company with operations in Zimbabwe through Arcadia Lithium project, Prospect Resources has expressed a keen interest to list on the soon to be launched Victoria Falls Stock Exchange.
In an exclusive interview with Equity Axis on Tuesday morning through a virtual chat from Perth Australia, Managing Director Mr Sam Hosack revealed that the miner had indicated interest to have a secondary listing on the VFEX whose launch is expected in the second half of 2020.
Prospect Resources in September listed on the Frankfurt Stock Exchange, the largest German bourse in an effort to further capitalise the business whereon it now has a market cap of €20 million.
Prospect also appointed Afreximbank to arrange and manage the primary syndication of a US$143m project finance debt facility as the miner seeks to capitalise its operations.
In May 2020, Zimbabwe’s Finance Minister Professor Mthuli Ncube first announced government would open a stock exchange in the resort town of Victoria Falls. The Victoria Falls Stock Exchange will be denominated in foreign currency and aimed at “foreign investors and global capital, especially the mining sector,” Mthuli Ncube said.
The new market will be managed by the country’s main bourse, the Zimbabwe Stock Exchange (ZSE).
The move to launch the bourse has been escalated by recent developments on the ZSE which led to a month long suspension of trades. Government suspended trading after what it termed as observable speculating activity and carnage emanating from the implied exchange rate.
Government has blamed the largest financial institution, Old Mutual Limited, which is secondary listed on the ZSE for influencing hard currency outflows through fungibility and also allowing for the computation of the Old Mutual Implied Rate. Both acts are however independent of the company’s influence.
To close the loophole, which government believes to be a key contributor to the currency carnage, authorities have proposed the delisting from the ZSE main board and listing of all dual stocks on the USD denominated VFEX.
Government is expected to allow resumption of trading on the ZSE upon the conclusion of investigations on allegations that led to suspension of trading are concluded, and this might take a week or two, Finance and Economic Development Minister Mthuli Ncube said yesterday.
Responding to queries raised at a post Mid-Term Budget Review webinar, Minister Ncube said suspension of the stock exchange, since the 26th of June 2020, was done “to make sure there’s some discipline in our private sector activities.”
Prospect’s conversation with Equity Axis was aired on Thursday the 23rd of July on “The Earnings Review,” a show which profiles listed companies and reviews their operations. The show is streamed live on Equity Axis Twitter, Facebook and Youtube as well as on Alpha Media’s Newsday plus Heart & Soul platforms every Tuesday and Thursday at 1900hrs.
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