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Hi, ZeeNut,
Thanks for the update
Rakesh
On Aug 8, 4:40 pm, ZeeNut wrote: > Dear Sonia, > > Sandur Manganese has posted an EPS of RS 3.37 for the quarter. This > leaves the company to earn another Rs 117/- in the next 3 quarters to > achieve your target of an EPS of Rs 120/- plus for FY08 !! > > After you had posted the above “scoop”, I contacted the company & > spoke to the following company officials to confirm the story : > > Mr. Abdul Saleem (Company Secretary) - Ph : 09448497927 = =20 > Mr Acharya (Sr Mgr) - Ph : 09448497903 = =20 > Both these officials are available at the Bangalore office of the > company, the board numbers of which are : 080-23445847 = , 080-41490385 , 080-41490387 . > > Unfortunately, the information given by the company officials does not > fit in with your projections at all. > > The consolidated information given by them is as follows : > 1. The primary business of the company is mining for manganese ore. > More than 90% of company’s mining is for manganese ore & less than 10% > for iron ore, which is undertaken only when iron ore prices are high. > > 2. Company produces very low grade manganese ore, which requires extr= a > processing to use the same, so prices are very low (approx Rs 3000 per > ton). As for the little iron ore it produces, it is again mostly low > grade, with some middle grades also. > > This contradicts your statement that the company has “very high > quality iron ore and manganese mines”!! > > 3. The company has to bring in 150 Cr over a few years, as part of th= e > financial settlement to bring the company out of BIFR. > > 4. The Mining licenses of the company had expired on 31.12.2006 & the > State Govt did not renew the same. However the company went to the > Supreme Court, which has allowed the company to continue mining in > existing area of operations, pending receiving the same from the State > Govt. This is a “deemed approval” & the company does not fear having > to stop operations in it’s existing area of operations. > > 5. The reasons for the good performance of the company in the last > quarter Q4 of FY07 (after adjusting extraordinary charges, the net > profit is a very good positive figure) is the settlement of old dues > by the Jindals, and also the deferment in shipping of some orders of > Q3 to Q4. > > While highlighting the fact regarding the Q4 results being very good, > you did not try to find out (or did not care to reveal) the real > reasons for the same !! > > 6. It is not possible for the company to ramp up operations quickly a= t > any point of time. The company has mined most of it’s existing area > of operations, and is now steadily approaching the periphery of the > area allotted to it for mining. In fact if it does not receive > clearances for additional mining area (for which it has applied for), > production will actually fall in a year or two. > > The company has applied for the licenses to obtain fresh area for > mining. Forest/Environmental clearances have been received for the > same, but the mining licenses are not received & the company is unable > to predict when the same will happen (these things take a few years > from start to finish, as intimated by the company). > > But even when the same is obtained, there will be no immediate ramp- > up, as environmental clearances put a restriction on the mining that > can be done yearly, for environmental reasons. Also, the company > itself would not like production to shoot up, lest it finds itself > without fresh mining area after the new area is mined by it, so it > would exploit the new area steadily. > > However you have projected the turnover of the company to rise from Rs > 123 Cr to Rs 500 Cr in the current year itself (a 300% rise in a year) > which as I have explained, is totally impossible !! > > While I am not imputing any motives to your posts, in the light of the > above , please be more careful when making forward looking statements > in future. > > (In fact you should have been more careful after the earlier issue > over Sika Interplant). > > Regards, > > ZeeNut > > PS : The company is not a bad company at all, in fact it’s officials > are really helpful. I am only against false & misleading statements. > > On Jun 12, 4:14 pm, “sonia sharma” > wrote: > > > > > Hi Sir, > > We tracking this stock for quite some time and also bought it at 50-52 > > levels . > > I fully agree with u that this is next NMDC in making as its has very hi= gh > > quality iron ore and maganese mines > > > Sandur is a town in Bellary District in the Indian state of Karnataka. I= t is > > the administrative seat of Sandur taluk. > > > Sandur is located at 15.1=B0 N 76.55=B0 E[1]. It has an average elevatio= n of > > 565 metres (1853 feet). > > > *Sandur Taluk has deposits of manganese ore and hematite (iron ore*), an= d is > > home to several mines, including: > > > SMIORE - The Sandur Manganese and Iron ORE company, owned by the Ghorpad= e > > family. *They were the ruler of sandur and wield very high political clo= ut > > in karnatka politics .One of the member is MLA and minister in state > > goverment …. thats why they were able to settle all their debts > > …(actually got them waived off)* > > > - *Secondly If u check out the march results u will find that have > > have actually made a profit of 20 crores but due to afforestation cha= rge of > > Rs 70/- crores its in loss of 53 crores * > > > *Thus with the equity of 8.5 cr divided into 87 lacs shares its work ou= t to > > be 22-25 rs eps in this quarter alone * > > (Based on a Supreme Court directive for payment of Net Present Value (NP= V) > > for use of forest land for other activities, the Company has paid Rs > > 1070.556 million to the Forest Department for diversion of about 1758 ha= . of > > forest land for renewal of mining lease. The lease period being 20 years > > from January 01, 1994 to December 31, 2013, the proportionate amount fro= m > > January 01, 1994 to March 31, 2007 of Rs 709.244 million has been charge= d > > off during the current quarter. The balance amount of Rs 361.312 million > > will be charged off over the next 6 years ending on December 31, 2013.) > > > Now if we assume a turnover of 500 crores in next year (which is quite > > stagnent) and a profit margin of 20% which is quite achivable it is goin= g to > > have an eps of 120+ > > > And if we compare with sesa goa then it can easily touch 700-800 per sha= re > > > — > > Thanx and regards > > > Sonia Sharma > > Research Analyst > > yahoo id soniasharma_india- Hide quoted text - > > - Show quoted text -