Many of the mining companies that have sought listings in Singapore are Indonesia-based coal players. They include Golden Energy and Resources — the largest Singapore mining stock by market capitalisation — which listed via the RTO of United Fiber System; as well as BlackGold Natural Resources via the RTO of NH Ceramics; and Resources Prima Group via the RTO of Sky One. A fourth Indonesian coal producer, Geo Energy Resources, listed via IPO.
However, stock manipulation scandals involving companies that had promoted themselves as mining plays could have also deterred investors from becoming more involved with the whole sector. Last year, shares in ISR Capital soared as much as 40-fold as the company made plans to acquire a 60% stake in a rare-earth concession in Madagascar. On Nov 24, the day John Soh Chee Wen was arrested, shares in ISR suddenly lost more than half their value. Trading was halted by the company, and later suspended by SGX.The stock traded at a peak of 33 cents, valuing the company at well over $500 million.
So, is this a good time to get into locally listed mining stocks? Which ones offer value? Find out more in the May 29 issue of The Edge Singapore which is on sale now.
