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 Minerals receives final payment from disposal of cement business
Prosperity Minerals (LON:PMHL)
has received the final £16.5m (HK$200m) payment from the disposal of it
cement businesses to TCC International Limited. Earlier this year, the
company sold most of its cement related assets to TCC in a deal worth
approximately £313.5m (HK$3.8bn).
Today, the company also received an increase in the Shareholder Loan Balance of US$49.6m (£31.7m) from the disposal.
Since
the disposal, Prosperity Minerals has focussed on the development of
its Chinese iron ore business, and it has also entered the Chinese real
estate sector.
The greater emphasis on iron ore, was reflected in the company’s latest
result which showed an 80% year-on-year increase in the total tonnage
shipped to 7.9m tonnes (FY09: 4.4m tonnes).
Prosperity Minerals
recently agreed a significant new iron ore master off-take agreement
with Grace Wise Pte Ltd, to purchase ore from Malaysia. The three-year
off-take deal sees maximum trading volumes capped at 1.5m metric tonnes
in FY11, 2.5m metric tonnes in FY12 and 4m metric tonnes in FY13.
With its first steps into the Chinese real estate development sector, Prosperity entered into agreements for two separate property investments - in the Fujian Province in south-east China and in Guangzhou City - in June.
According
to Prosperity, the PRC’s long term urbanization plan brings increased
demand for high-quality housing in China’s cities. Furthermore, the PRC
real estate market has recently entered a down-cycle, offering an
opportune time to enter the PRC real estate market.
Additionally, the company has also returned value to shareholder via on-market share buy-backs.
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 to pay £70.1m for Guangzhou properties
2010-07-30 - Prosperity Minerals revenues hit US$849 million in FY09
2010-07-06
