JSM still suspended; miners in mixed week

(Posted by CAAI News Media)

Monday, 14 December 2009 15:01 Jeremy Mullins

Stocks Roundup

JSM Indochina’s stock price remains frozen at US$0.66 after the firm was suspended from trading on London’s AIM exchange following a shareholder-driven shakeup of the board of directors.

In an extraordinary general meeting held last week, a majority of shareholders voted to replace one half of the serving six-person board with nominees proposed by San Francisco-based hedge fund Passport Capital LLC, a minority investor in the firm.

Under the rules of the AIM board, the London Stock Exchange’s alternate investment market, the three new appointees must be approved by the firm’s nominated advisor. However, Numis, the firm filling that role, resigned last week, leaving trading suspended until a replacement adviser is named.

Australian miner Southern Gold Ltd closed down 10 percent Friday at A$0.135, after the firm rolled out Thursday the first of two previously announced common share issues. The 21 million shares were offered at A$0.125 each, and are intended to fund the firm’s projects in Australia and Cambodia. Gold bullion prices dropped in international trading on the day.

Another Australian gold miner, OZ Minerals, bucked declining bullion prices, finishing up 0.4 percent to A$1.20, 13 cents off its 52-week high of $1.33. The firm has announced plans to identify 2 million ounces of the precious metal on its Cambodian properties by the end of 2010.

China Asean Resources Co Ltd continued to see a drop in its share prices from a high of $0.26 early this year, dropping 2.2 percent to end at $0.135 in Hong Kong trading on Friday.

The firm previously reported that Cambodian efforts to clamp down on illegal logging had obstructed production at its 10,000 hectare concession in Kratie province, but said at the end of November an understanding had been reached with the Ministry of Commerce allowing work to ramp back up at the site.

Moscow-based Vimpelcom, which owns Cambodian mobile-phone operator Beeline, also continued its slide in trading on the New York Stock Exchange last week.

The fall came as the Cambodian government released an edict setting minimum tariffs for Cambodia’s mobile-phone operators. Since then, the company’s shares have dropped 7 percent, closing Friday at $18.05. There is no suggestion the firm’s share price was affected by the events in Cambodia.

Vimpelcom faces ongoing legal action from Mobitel, the Kingdom’s largest mobile operator, over alleged price-dumping and illegal use of prefixes, a catalyst to the government’s recent action in the sector.