Steppe Cement Share Discussion Threads

[azalea] 14/7/2016 09:12

iDealing.com is currently quoting the narrowest spread I have ever seen -23/23.41p for 10k

[azalea] 14/7/2016 08:19

An increase in market share,4% of sales exported and a massive drop of 63% in foreign imports, is definitely a step in the right direction.

[lovelyjubly1] 14/7/2016 07:24

Steppe Cement's local market share increased to 18% in the first half of 2016 from 16% in the same period of 2015 and exported 4% of its sales compared to none in 2015.

The Company currently estimates country consumption at 9 million tonnes for 2016.

[azalea] 14/7/2016 06:46

Watching a U.S. programme on global financial issues, the resident guest speaker suggest that the move by lenders to reduce guarantor requirements and regulations governing loan repayments,in the face of a drop in house purchases and auto sales, the dollar could be heading for a fall over the next 12 months.

[wilo101] 14/7/2016 03:38

STCM is worth at least Euros350m, as that is what Vicat of France had to pay for their 1mtpa plant at Balkhash and Heidelberg for their 800,000tpa plant at Aktau, yet STCM's CAC and Karcement have capacity of 3.2mtpa and is far, far better in every respect, the stock is ludicrously udner-valued and as Russia improves and normalises, so will Kz. Finally, major Russian corprorates are re-entering the Bond and financing markets, so the process is underway and with the World Cup due in less than 2 years, which will herald a construction boom, not to mention Expo 2017, already underway and the recently announced US$36bn TCO expansion and the soon to be announced Kashagan full-field development.

[azalea] 13/7/2016 12:06

The potential for STCM shares is poking its head above the parapet and onto the radar of P.I. Any purchases by new and/or existing major holders will set the share price alight. Any positive news on a deal between the Chinese and countries along the Silk Road route, to build the new Kaz -Iran standard gauge railway, should have a direct and significant influence on STCM prospects. Holding tight.

[wilo101] 13/7/2016 02:03

What we need is real consolidation in the sector and for the Rouble and Russia to improve, because like America for Britain, if Russia sneezes, Kazakhstan catches a cold.

But regardless of all else, STCM is grossly and vastly under-valued on any measure and the market has give it no credit at all for what has been achieved, plus the stock is so tightly held when the buyers come, as they inevitably well, as confirmed by Mr Asmi's record and strong purchasing, the price will surge and the stock will be entirely re-rated.

[azalea] 12/7/2016 06:31

If, as is most likely,the Arbitration Court at the Hague rules against China's territorial claims of islands in the South China Seas, and China maintains it position of refusing to recognise the Court itself, regardless of its ruling; then what next?

Would the USA with its enormous financial clout take steps against owners of oil tankers carrying oil to China, by placing an extensive ban on international insurance companies insuring such oil tankers and their cargoes? If this were to happen, the proposal by China to build an overland rail route to Iran, would become an imperative of the highest priority.

[azalea] 09/7/2016 11:45

Wilo
I give way to your understanding and knowledge of the consolidation steps being taken in the Kaz cement market. However, given the 28.66% stake amassed over the years by Malaysian millionaire/billionaire Amzi Wan Hamzah in STCM, I question the thinking that he might be interested in buying into/out another cement company; when he has yet to see a return on the millions he has invested in STCM. My thinking is that he is looking for a buyer for a greatly modernised STCM either by another participant in the Kaz cement market, or a by Chinese cement company ahead of an agreement by involved governments to build an international standard gauge rail line from China to Tehran via Kazakhstan. Any increase in the stakes held by current holders in STCM, could certainly point in the latter direction, and boost its share price.

[wilo101] 09/7/2016 04:15

Finally some consolidation in the Kz cement market is being seen, now that the Heidelberg purchase of Italcimenti/Ciments Francais has closed, giving them the Shymkent plant, as well as Bukhtarama and Shepte, see hxxp://www.heidelbergcement.com/en/pr-01-07-2016, now we need to see STCM move to further conslidate and purchase such as Seipalatinsk and Kant from the effectively bankrupt United Cement Group, who have more than US$500m of debt they can never repay to JSC Kazkommertsbank, who in effect are financiers in posession, then 6 of the key 7 plants will be in tow hands and we may see some sensible pricing.

[azalea] 08/7/2016 13:06

China's Foreign Ministry spokesman Hon Lei, repeats China's position " I say again that the arbitration court has no jurisdiction in the case of the disputed islands. China does not accept any resolution from a third party and does not accept dispute resolution forced on China'

[mach100] 08/7/2016 10:53

Really good recovery in the share price and a haven from post-Brexit woes.I hope we can continue to push higher as I am still underwater. It has paid a divi in the past so looks worse on paper for me. STCM has broken through its year high today so we could be heading into a new trading range.

[azalea] 08/7/2016 10:35

Sp Steppe}ing up, but still circa 50% more to go before MR Hamzah breaks even on his purchases of 2,256,496 @ 37p+ on 26/3/2014 and 1,800,000 @36.75p 24/10/2014. His last purchase of 3.575m on the 26/11/2015,took his holding to 28.66%.

[wilo101] 08/7/2016 03:25

China Cement (Resource) Holdings Limited is also a keen buyer, but the owners and controllers will not sell for less than US$500m, so there is huge upside for this stock. Slowly Russia is normalising relations and we now see Russian corporates returning to the Bond market, as to which Kz issuers will soon follow, plus with the 2018 World Cup due in Russia, everything will be back to normal by then. On Tuesday, CVX and XOM, with KMG and Lukoil announced the US$36bn expansion of the TCO project to go deom current production to almost 1mbarrels per day through the FGP and WPM Projects, as a result we will also see about US$20bn spent upgrading CPC. Assuming the Kashagan pipeline does not leak again, the Kashagan early-oil of 250,000bpd will be flowing in November, shortly after which we will see an extension of the Kashagan PSA, so that the new leaders of NCOC, Shell and XOM, in palce of the hapless Agip, can finally get on with the full-field devleopment. Thus, finally, Kazakhstan is getting back into business and the country and STCM will come slowly back into favour and get re-rated, which can only show better times ahead. Time to buy.

[azalea] 07/7/2016 12:26

China warns U.S.A. against any infringement of its sovereignty over the Paracel Islands in the South China Seas, ahead of the ruling by the International Court at the Hague. If the ruing at the Hague goes against China's claims over the islands. the greater imperative for it to build the proposed new overland rail line from its Western border to Iran via Kazakhstan.

EDIT: Bid price for 20K 18.9P.

[azalea] 05/7/2016 17:59

Wilo
If as you say,all the companies you quote would like to buy STCM one day, then it looks like they could have all missed the boat given the share price has risen well off off its lows albeit way below its highs. STCM combined capacity and efficiency of its two dry line plants is undeniable attractive, however the capacity has yet to be filled with orders let alone at higher prices. The 300 new rail wagons are reducing overall maintenance costs, with much older wagons taken out of use and sold off. However, the new wagons will not return a net profit for a couple of years.

The points I have made on the geopolitical events, lend added weight to the plans being discussed to build the new line between China and Iran via Kazakhstan. I would suggest that China not only has the kind of wealth to finance a major part of the construction costs, but also the necessary political, trade and cultural connections with most of the countries en route. . A new line of international standard gauge, would eliminate the need to transfer rail wagons from one set of bogeys to another on the KAZ China border, which currently causes delays running into several days. A new line would increase the value of trade by several hundred percent.

For all the reasons stated, I see a Chinese cement company having a greater reason to buy STCM than any other company. That said, I would be delighted to see a bidding war between two or more companies for STCM.

[wilo101] 05/7/2016 03:13

The above is all geo-political waffle, Vicat of France, financed by Calyon and the IFC, spent more than Euros350m on their 1mtpa Balkhash Plant, Heidelberg the same on their 800,000tpa Shetpe plant, however STCM has a 3.2mtpa plant and 2 side-by-side dry lines, its own lime for more than 100 years, clay for more than 500 years, gets cheap coal from Ekibastuz and Karaganada, free-of-charge slag from nearby Arcelor-Mittal, is close to Astana where they are buiding the 2017 Expo site, has its own fleet of railway cement wagons, and is admired and coveted by all of the world's majors, all of whom would love to buy it one day. CRH, Holcim-Lafarge, Cemex, Heldelberg, etc etc, it is worth at least GBP300m, so is a screaming buy.

[azalea] 04/7/2016 10:44

Further to my post 526, I note with interest the report today, that China is carry out military exercises in and around the Parcel Islands located in the South China Seas which lay directly in the main shipping lanes to the Far East. The Islands are claimed by China, Vietnam and the Philippines. Recently, a U.S. warship sailed through these islands, on the basis that they were in international waters. In the past 18 months the U.S. has significantly increased its naval presence in the South China Seas at the expense of its presence in the Persian Gulf. The Philippine Government has reportedly lodged a complaint at the China's actions, with the International court at the Hague.

These latest developments reinforces the intentions of China's involvement in the construction of a new international standard gauge railway line between Tehran and Chinas Western border with Kazakhstan.

[wilo101] 02/7/2016 14:01

STCM is worth at least GBP250m, as compared to the current market capitalisation

[azalea] 02/7/2016 10:36

In co-operation with Central Asian countries,China is planning to protect its energy supplies from military intervention on the high seas,by extending its existing international standard gauge rail line running from its East Coast to its border with Kazakhstan. From this border point a new line of matching gauge will be built via KAZ to Tehran in Iran. The latter soon to become a major oil and gas producer now that oil sanctions have been lifted by the USA. The new line and new road access points will require considerable amounts of cement; for which STCM is a very likely candidate to win orders.

The fact that the bid price has risen circa 40% this year on very modest buying, suggests if nothing else,as poster 'wilo101' has indicated,the share price is cheap. With Mr Hamzah(28.66%},Consilium Investement Man(5.09%),Firebird Funds(4.16% and Neon Liberty(bought 1.679,871 shares @14p-14/12/2015) continuing to hold onto their increased stakes,amongst a total holding by major holders of 78.66%, they too must think there is much more to come.

[wilo101] 02/7/2016 03:50

STCM is incredibly undervalued, the market does not realise what the company has done and achieved and the position it is now in, 2-dry-lines side-by-side in full production and ever decreasing debt, a ridiculous price at GBP36m, when Hedelberg spent Euros350m on a mere 800,000 tonne single line and Vicat Euros350m on their similar Balkhash plant, plus the stock is very tightly held with the 4 original founders controlling the company.

All of the world's majors would love to buy these assets and this business.

[azalea] 01/7/2016 12:27

Interest continues, bid for 25k, now 17.5p
EDIT: "' "' "' 18.14p

[azalea] 30/6/2016 09:45

Bid for 25K now 17P

[azalea] 24/6/2016 10:40

Mid morning 8k+ buy @ 17.9p. Were it not for this mornings market panic, I would expect the bid to move higher. Nevertheless the spate of buying is interesting.