What is an American Depositary Receipt (Level 1 ADR)?

An ADR is a negotiable US certificate representing ownership of shares in a non-US corporation.  ADRs are quoted and traded in US dollars in the US securities market.  Also, the dividends are paid to the investor in US dollars.  ADRs were specifically designed to facilitate the purchase, holding and sale of non-US securities by a US investor, and to provide a corporate finance vehicle for non-US companies. 

What are the benefits of ADRs to US investors?

US investors generally prefer to purchase ADRs rather than ordinary shares in the issuer's home market because ADRs trade, clear and settle according to US market conventions.  One of ADR's main advantages is the facilitation of diversification into foreign securities.  ADRs also allow easy comparison to securities of similar companies as well as access to price and trading information, if listed.  ADR holders also appreciate dollar dividend payments and receiving corporate action notifications.

What types of companies issue ADRs?

ADRs issuers are typically large multinational corporations.  Any non-US company seeking to engage the US market to diversify its investor base, raise capital in the US or offer US-type employee plans. 

Where are Peter Hambro Mining Plc's ADRs traded?

The ADRs are traded Over-The-Counter.

Symbol: POGNY
CUSIP: 71602M104
Exchange: OTC
Ratio: 1:2
Country: United Kingdom
Industry: Mining
Depositary: BNY (Sponsored)
Effective Date: 7 July 2003
Underlying SEDOL: 3154454
Underlying ISIN: GB0031544546
US ISIN: US71602M1045