Namibian triple-play: Diamonds, demographics and development
Well-positioned conglomerate. Trustco Group Holdings (Trustco) operates primarily in Namibia, where it is one of the most profitable insurers, the largest private urban landowner and runs one of the most actively followed media sources. It also owns a promising mining asset in Sierra Leone. Trustco’s shares are listed on the Johannesburg and Namibian exchanges: market cap is US$673mn, ADV is US$15k. The key shareholder is founder and CEO, Dr Quinton Van Rooyen (62% stake).
Trustco operates three major segments: Insurance and its Investments; Resources; and Banking and Finance. The group is present in Namibia, Sierra Leone, Mauritius and South Africa.
Positive recent developments in relation to diamonds and properties. Trustco recently received mining licences for its two diamond mines, which hold resources of c6.8mn carats of high-value diamonds; production should start next year. The property portfolio is expected to generate strong sales and fair-value gains, particularly given the recent provisional approval to establish a township on one of its largest property assets, Farm Herboths.
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