[2007-11-07]  Mining Counters shine on BSE
Buoyed by its recent listing on the Alternative Investments Market (AIM) in London, Diamonex led the pack of gainers on the local bourse last week, adding on a solid 12 percent week on week.

Although both the DCI and the FCI recorded minor losses in the week under review, some significant gains were registered in most mining counters which included a 5.04 percent gain in Discovery as well as a 1.68 percent increase in the share price of AF Diamonds.

All the top three gainers were powered by positive corporate developments. Diamonex began trading on the LSE last Monday and analysts believe that that the listing will improve share trading access for the firm's international institutional investors.

Behind Discovery's good performance in the week was the announcement of the drilling results at its Plutus prospect, which confirmed an expanded 6.5-kilometre long copper-silver mineralisation.

Discovery said the strike length remained open to the northeast and the southwest as the drilling programme continued to produce encouraging results.

African Diamonds' 1.68 percent rise also came hard on the heels of news that the company had been awarded three new prospecting licences covering 1, 984 square kilometres close to the Orapa region.

The company considers the new area prospective for diamonds as kimberlitic indicators were recovered during exploration by earlier explorers. Exploration is set to resume early next year.

CIC Energy, whose Environment Impact Assessment statement for its Mmamabula Power Project got the Government's greenlight, was on the list of last week's gainers which also included Letshego, Investec and Imara.

As has become the norm in the past few months, a commercial bank on the losers' side, with Barclays weakening by 1.1 percent. But the highest losses were registered by AF Copper.

Meanwhile, construction materials company Olympia released its results for the eight months ended August 31, 2007.

According to a Stockbrokers Botswana report, turnover for the company was P60.5 million from P9.7 million for the six months ended June 30, 2006 mainly due to incorporation of the results of South African company, Plush, acquired in the second half of 2006.

Profit after-tax for the period was P1.7 million, compared to P0.68 million for the six months of last year.

"The company noted that the performance of the Botswana business was in line with expectations while the South African business was struggling with profitability.

"Management expects the changes being effected on the SA business to deliver profitability and should also provide a reduction in finances charges," the report said.





Source: © Mmegi, Since 2002