Prosperity Minerals
Prosperity is an iron ore trader serving customers in the People's Republic of China (the 'PRC') and holds investments in entities involved in the manufacture and sale of cement and clinker in the same market.
Prosperity also has a real estate division and has recently entered into a number of conditional agreements designed to build up a portfolio of PRC property and development assets.
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Prosperity Mineral values Chinese cement business property interests at US$155 mln
Prosperity Mineral Holdings (AIM: PMHL) today disclosed information
relating to the sale of its Chinese cement business Upper Value
Investments Limited, including its property valuation and half yearly
results for the PMHL remaining group which stands at approximately
US$155 million.
PMHL agreed to sell the business to TCC
international Holdings (HKG: 1136) for £300 million back in November,
bringing in cash reserves to fund the development of other businesses
such as the group’s existing iron ore related operations, natural
resources and real estate in China.
During the six months ended
30 September 2009, the PMHL Remaining Group recorded a turnover of
US$397.3 million, which market a year on year improvement of 41%. The
growth in turnover was mainly attributable to the 169% increase in the
total tonnage of iron ore shipped by the PMHL Remaining Group to 5.2 Mt
(million tonnes) from 2 Mt in the previous period. The group’s gross
profit rose to US$11.88 million due to a recovery in global seaborne
iron ore market. Losses for the period amounted to US$3.36 million
compared to a profit of US$11.35 a year earlier.
The PHML
Remaining Group's total cash balance stood at US$14 million at 30
September 2009 compared to US$20.2 million at the end of March and
total borrowings were at US$15.75 million, down from US$21.5 million in
March.
Upper Value posted revenues of US$94 million in the six
month ended 30 September and US$87.6 million in the equivalent period
of the previous year, while pre-tax profits amounted to US$1.43 million
in 2009 and US$0.27 million the year before. Losses for the full year
to 30 September stood at US$1.65 million compared to US$0.68 million a
year ago.
The valuation of the property interests held by the
target group consisting of property interest contracted to be held for
future development in China, property interests held for
self-occupation and under development, amounted to RMB 1.06 billion, or
US$155 million.
Daniel Stewart & Company (DS&C) today
published a note in response to the statement from Prosperity Minerals,
reiterating its 'buy' recommendation for the stock, leaving the target
price at 250 pence and expecting it to be closed as the company moves
closer to the completion of the transaction.
Other Prosperity Minerals news
- Prosperity Minerals sees more domestic demand coming from China’s new 5 year plan
2010-11-30 - Prosperity Minerals performing in line with expectations
2010-10-08 - Prosperity Minerals completes acquisition of 25% stake in Liaoning Changqing Cement
2010-09-01 - Prosperity Minerals receives final payment from disposal of cement business
2010-08-21 - Prosperity Minerals to pay £70.1m for Guangzhou properties
2010-07-30
