LionGold Produces First Bar of Gold
LionGold Corp, formerly known as The Think Environmental Co, announced that it has produced its first bar of gold, which it describes as an important milestone in its gold mining venture. Despite an early attempt to make it big as a green technology player, the company remains reliant on its office equipment manufacturing business. For its fiscal first quarter ended 30 Jun-11, it made a loss of $2.8m on a drop in orders for office equipment. LionGold Corp announced earlier this year that it will invest between US$30m and US$45m over 12 months in its gold mining business. The group has so far paid out some US$14m to develop its new business and has set a target of producing 1m ounces of gold over a 5-year period.
Significance: LionGold’s share price has soared 52% since Dec-10. Despite the unwrap of its first gold bar, some brokers are adopting a cautious stand on its shares, fearing the stock price could have outpaced its fundamentals and citing gold price volatility. Meanwhile, UOB-Kay Hian added that the counter is overvalued and that its track record also hasn’t been very good.
TTJ Holdings’ FY11 Bottomline More Than Doubles To $14.4m
TTJ Holdings’s FY11 bottomline more than doubled to $14.4m on the back of a 39% jump in revenue to $96.8m, thanks to robust growth in structural steel and dormitory businesses. ‘In spite of an uncertain global economy, we managed to achieve a commendable set of results in FY11 and a healthy order book which we expect to substantially complete in FY12 and FY13,’ said Teo Hock Chwee, founding chairman and managing director of TTJ. Meanwhile, its gross profit margin also jumped to 28.5% compared to 25.5% in FY10, due mainly to better gross margin derived from the projects it secured and executed during the year as well as the Group’s dormitory business.
Significance: As at 15 Sep-11, the company has a book order of $147m, comprising projects announced between Feb and Jun-11, including the structural steelwork contracts for part of the new Halliburton Plant and the mass rapid transit (MRT) downtown line 3. The firm also believes that it is well placed to capitalise on Singapore’s relatively stable building and construction sector, and is also pursuing potential projects in Malaysia and Vietnam.
GLP Refinances JPY47b Debt
Global Logistic Properties (GLP) has completed the refinancing of a JPY47b ($790m) debt one year ahead of maturity and at a lower interest cost. In an announcement on 26 Sep, GLP said that the new interest cost is 1.42% (with interest rate swap), lower than the previous interest cost of 1.94%. In addition, the maturity of the debt, which represents 19.4% of GLP’s overall debt in Japan, has been extended to Mar-16 from Sep-12. GLP was recently named the Best Industrial/Ware-house Developer in China in the 2011 Euromoney Real Estate Awards. It is also the fifth consecutive year that the company has won this title since the award was launched in 2005. GLP owns, manages and leases out 337 completed properties in 127 logistics parks spread across 27 major cities in China and Japan.
Significance: The aforesaid refinancing allows the firm to achieve interest savings and further strengthens its robust capital structure by extending its debt expiry profile. With a low leverage of 22% net debt to gross asset value, this enables the firm to continue to have significant financial flexibility in the current economic environment.
LionGold Produces First Bar of Gold
LionGold Corp, formerly known as The Think Environmental Co, announced that it has produced its first bar of gold, which it describes as an important milestone in its gold mining venture. Despite an early attempt to make it big as a green technology player, the company remains reliant on its office equipment manufacturing business. For its fiscal first quarter ended 30 Jun-11, it made a loss of $2.8m on a drop in orders for office equipment. LionGold Corp announced earlier this year that it will invest between US$30m and US$45m over 12 months in its gold mining business. The group has so far paid out some US$14m to develop its new business and has set a target of producing 1m ounces of gold over a 5-year period.
Significance: LionGold’s share price has soared 52% since Dec-10. Despite the unwrap of its first gold bar, some brokers are adopting a cautious stand on its shares, fearing the stock price could have outpaced its fundamentals and citing gold price volatility. Meanwhile, UOB-Kay Hian added that the counter is overvalued and that its track record also hasn’t been very good.
TTJ Holdings’ FY11 Bottomline More Than Doubles To $14.4m
TTJ Holdings’s FY11 bottomline more than doubled to $14.4m on the back of a 39% jump in revenue to $96.8m, thanks to robust growth in structural steel and dormitory businesses. ‘In spite of an uncertain global economy, we managed to achieve a commendable set of results in FY11 and a healthy order book which we expect to substantially complete in FY12 and FY13,’ said Teo Hock Chwee, founding chairman and managing director of TTJ. Meanwhile, its gross profit margin also jumped to 28.5% compared to 25.5% in FY10, due mainly to better gross margin derived from the projects it secured and executed during the year as well as the Group’s dormitory business.
Significance: As at 15 Sep-11, the company has a book order of $147m, comprising projects announced between Feb and Jun-11, including the structural steelwork contracts for part of the new Halliburton Plant and the mass rapid transit (MRT) downtown line 3. The firm also believes that it is well placed to capitalise on Singapore’s relatively stable building and construction sector, and is also pursuing potential projects in Malaysia and Vietnam.
GLP Refinances JPY47b Debt
Global Logistic Properties (GLP) has completed the refinancing of a JPY47b ($790m) debt one year ahead of maturity and at a lower interest cost. In an announcement on 26 Sep, GLP said that the new interest cost is 1.42% (with interest rate swap), lower than the previous interest cost of 1.94%. In addition, the maturity of the debt, which represents 19.4% of GLP’s overall debt in Japan, has been extended to Mar-16 from Sep-12. GLP was recently named the Best Industrial/Ware-house Developer in China in the 2011 Euromoney Real Estate Awards. It is also the fifth consecutive year that the company has won this title since the award was launched in 2005. GLP owns, manages and leases out 337 completed properties in 127 logistics parks spread across 27 major cities in China and Japan.
Significance: The aforesaid refinancing allows the firm to achieve interest savings and further strengthens its robust capital structure by extending its debt expiry profile. With a low leverage of 22% net debt to gross asset value, this enables the firm to continue to have significant financial flexibility in the current economic environment.
