DRDGold's Ergo gold recovery operation
The A2X stock exchange has announced that gold producer DRDGold is to list its shares on it. This additional listing will not affect the gold company’s issued share capital. Currently, DRDGold has its primary listing on the Johannesburg Stock Exchange and its secondary listing on the New York Stock Exchange.
DRDGold’s shares will start trading on the A2X on September 5. It is far from the first South African mining company to list on this exchange. Already on it are AngloGold Ashanti, Gold Fields, Harmony, Impala Platinum and Pan African Resources.
“We look forward to welcoming DRDGold to our market next week,” affirmed A2X CEO Kevin Brady. “Their listing on A2X will give DRDGold shareholders the opportunity to transact on a lower-cost platform in South Africa and enable them to enjoy the benefits that a secondary listing on A2X brings. These include added liquidity, lower exchange fees and narrower spreads.”
DRDGold is the only company in South Africa that is focused exclusively on the reprocessing of old gold mine tailings, using modern methods to extract gold that was once irrecoverable. It has two major operational areas. These are Ergo Mining Proprietary Limited and Far West Gold Recoveries. Ergo operates from south Johannesburg, eastwards, while, as its name signals, Far West covers the western end of the Witwatersrand mining belt.
With DRDGold joining the A2X, the exchange will have a total of 179 companies listed on it. These have a total market capitalisation of R10.6-trillion. The A2X exists to provide secondary listings for companies. It is regulated by the Financial Sector Conduct Authority and the South African Reserve Bank Prudential Authority.
There are also many other well-known companies listed on the A2X, including leading banking, hospital, medical aid and retail groups. These include Nedbank and Standard Bank, Life Healthcare and Discovery, Mr Price, Pick n Pay and Woolworths.