Malaysia Smelting Corporation Berhad

Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Hi has anyone reviewed this new IPO on tin mining, smelting and refining business?

ipo price is at S$1.75 while post-ipo-nav is around S$1.48 with 25million shares trading in sg while 75million shares are already traded in the KL bourse.

Though this company is a subsidiary of Straits Trading, its dividend yield been dropping for the past few years already while operating cashflows aren't consistent.

Do you think this is a prospective good bet?

Burmese exports dent investor hopes for tin sector

Robin Bromby

Business columnist
Climate Change For Copenhagen Summit
Poland’s coalminers see an opportunity to win back market share for local mines. Picture: Bloomberg Source: Supplied

TIN has had a disappointing 2014. In 2013, the metal was the toast of the London Metal Exchange, the best performer in the base metals complex, losing far less (2.7 per cent) than copper, nickel and the others in a not-too-good year.

However, with just over seven weeks to go, tin is the likely wooden spoon recipient this year, down 10.6 per cent. The metal managed to get back over the $US20,000-a-tonne level on Friday, but interest here in the tin sector seems subdued (to say the least).

What went wrong? Myanmar, that’s what. Suddenly, the Burmese became big suppliers to China, the exports across the border being much greater than the rest of the tin industry had expected, overwhelming (still valid) forecasts of a growing tin deficit.

Then Indonesia in the second quarter stepped up exports, triggering fears the price could collapse to around $US18,000 a tonne. That did not happen, the worst being the recent drop to the mid $US19,000s.

ITRI, the world tin body, now has staffers in Myanmar trying to get a handle on how tin mines there are shaping up, but ITRI’s Peter Kettle believes output levels have peaked. Kettle says had the price fallen to the $US18,000-a-tonne level, much world production would have gone under water. This, in turn, would have stalled investment in new projects, which need tin at well over $US20,000 to make them work.

“In fact, it will need to be stable around $US25,000 before the hundreds of millions needed will be available,” he adds.

He is confident the future deficit story is still valid. ITRI expects the supply deficit to increase from 2529 tonnes in 2013 to 80,456 tonnes in 2020. By the latter date, the world’s largest producer, Yunnan Tin, projects the tin price to be around $US40,000 a tonne. This year’s refined tin production should come near 352,000 tonnes.

It is still possible to get into tin plays at bargain-basement prices. Even the well-advanced Kasbah Resources (KAS), close to nailing down the money needed to develop its Morocco project, is seeing its shares trading at just 6.3c, while Aus Tin (ANW) with its Taronga, NSW, project trades at 0.4c (market cap: $3.73 million), Elementos (ELT) with a promising Tasmanian project is yours at 0.7c a share, while Stellar Resources (SRZ), which claims to have the highest grade undeveloped ASX-listed tin resource — 71,5000 tonnes worth $1.6 billion — is valued by the market at $9m. And for 0.4c there are shares in Victory Mines (VIC) and its Bolivian tin dreams.

Consolidated Tin Mines (CSD) should be a tin producer next year. It is also absorbing an operating zinc-lead-copper business in the same area of Queensland (giving it exposure to rising zinc prices). CSD is capped at $14m, its shares last trading at 5.5c.
In the end, 1 existing share becomes 4 new shares.

Proposed Share Split and Proposed Bonus Issue

On behalf of the Board of Directors of MSC, UOB Kay Hian Securities (M) Sdn Bhd wishes to announce that the Company proposes to undertake the following:
(i) a proposed share split involving the subdivision of every 1 existing ordinary share in MSC into 2 subdivided MSC Shares  ("Split Share(s)") held on an entitlement date to be determined later; and
(ii) a proposed bonus issue of 200,000,000 new Split Shares to be credited as fully paid-up on the basis of 1 Bonus Share for every 1 existing Split Share held on the same date as the Proposed Share Split.

More details in
Specuvestor: Asset - Business - Structure.
Straits Trading, MSC sign MOU to explore ways to develop land in Penang LINK

vested so long ago.
MSC's tin mining arm granted new mining leases in Perak, Malaysia

Malaysia Smelting Corporation Berhad has today announced that its wholly-owned subsidiary, Rahman Hydraulic Tin Sdn. Bhd. ("RHT"), has received approval from the State Government of Perak for the issuance of new mining leases for several parcels of lands spanning more than 700 hectares located at Klian Intan, in the state of Perak, Malaysia.

These mining leases refer to the RHT tin mine in Klian Intan, Perak, which is Malaysia’s largest hard-rock open pit tin mine in Malaysia. It has been in operations for 112 years since 1907 and is a significant contributor to the country’s tin production.

Under the new mining leases which will replace the cancelled previous ones, RHT will now enjoy a longer mining period of up to 11 November 2034, within an area of more than 700 hectares. This represents an additional 4 years from RHT’s previous mining leases which were expiring on 28 September 2030.

More details in
Specuvestor: Asset - Business - Structure.

Forum Jump:

Users browsing this thread: 1 Guest(s)