Creon Share Discussion Threads

[share_shark] 27/4/2013 09:58

ryan.

This may answer your question and some of your concerns.




Creon Resources plc








Glen Lau, Chief Executive Officer


Tel: [phone] / + 65 9677 9427




Daniel Stewart ∓ Company plc








Nominated Adviser ∓ Broker








Paul Shackleton / James Felix


Tel: + 44 (0) 20 7776 6550




GTH Communications Limited








Toby Hall/Suzanne Johnson-Walsh


Tel: + 44 (0) 20 3103 3900






DIRECTORS' REPORT



Introduction

The first half of the current financial year witnessed significant changes for the Company, culminating in the transformational joint venture agreement ("JV Agreement") announced in July 2012 with Yangzijiang Shipbuilding (Holdings) Ltd ("YZJ Holdings"). During the period under review the Company significantly strengthened its balance sheet through the successful completion of an open offer to all shareholders which raised £12.1 million (the "Open Offer"). 2012 has also seen some changes to the board and we were delighted to welcome Ghanim Al Saad and Glen Lau onto the board over the last few months.



Operational review

At the beginning of the period under review, the directors set out with two key objectives: (i) to strengthen the Company's balance sheet to enable it to execute its investment strategy; and (ii) to identify and execute a suitable investment.



Pleasingly, the Company was able to announce the Open Offer in June and, during July, the Company entered the JV Agreement with multi-billion dollar China based shipbuilding giant, YZY Holdings ("JV Investment").



Open Offer to raise £12.1 million

In June 2012, the Company successfully raised £12.1 million through an open offer to all shareholders issuing 2,416,429,088 new ordinary shares of 0.1p each ("Ordinary Shares") at 0.5p each. Any Ordinary Shares not taken up by the then existing shareholders of the Company were subscribed for by Qatar Investment Corporation ("QIC"), a company ultimately controlled by Mr Ghanim Al Saad. As a result of the Open Offer, QIC now holds approximately 72.8 per cent. of the Company's Ordinary Shares.



JV Agreement

As previously announced, under the terms of the JV Agreement, Creon and YZJ Holdings have invested approximately US$15.3 million and US$16.2 million, respectively, into YZJ Offshore Engineering Pte Ltd ("YZJ Offshore"), to enable YZJ Offshore to be become a leading player in the design and construction of marine offshore oil and gas vessels (jack-up and semi-submersible rigs). Since signing the JV Agreement, YZJ Offshore has been steadily building up its operations in order to provide marketing, procurement, front end engineering and design, and management consultancy services for the construction, fabrication and repair of oil and gas marine vessels and platforms.

During the period under review, the Company set up a wholly owned Singapore incorporated subsidiary, Creon Resources (Asia) PTE Ltd ("Creon Asia"), to become the registered holder of its investment in the YZJ Offshore. The JV Investment was transferred to Creon Asia post period end.



Financial review

No revenue was generated during the period as the directors' efforts were focussed on raising investment funds and executing the JV Agreement. Administrative expenses of £243,000 incurred during the first half (2011: £135,000) included approximately £140,000 of legal and professional fees associated with the Open Offer and the JV Agreement. The Company also incurred a foreign exchange loss of approximately £74,000 during the period on the JV Investment. The net loss for the period was £317,000 (2011: £135,000) and the loss per share was 0.06p (2011: 0.31p).



The Group ended the period with net assets of £11.84 million (31/1/12: £0.07 million), comprised of principally the JV Investment of £9.78 million and net cash of £2.12 million. Net (Xetra: A0Z22E - news) asset value per share as at 31 July 2012 stood at 0.43p (31/1/12: 0.02p).



Board changes

Mr Ghanim Al Saad joined the board as non-executive chairman on 4 October 2012 and Glen Lau joined as chief executive office on 18 September 2012, replacing Jeswant Natarajan who stepped down on the same day.



Current trading and prospects

YZJ Offshore, through its 40% owned associate company, Jiangsu Yangzijiang Offshore Engineering Co. Ltd. ("YZJOE China"), has now secured the land rights to approximately 1.6 million square metres of prime shorefront land in Taicang, Jiangsu Province on China's east coast, some 50 miles north of Shanghai ("Land"). The board of Creon understand that the Land is the ideal location for the construction of YZJ Offshore's new rig yard ("New Yard") due to its deep water and absence of bridges en route to the open sea. In addition to the ownership and construction of the New Yard, YZJOE China will undertake the business of turnkey construction, fabrication and repair of offshore oil and gas marine vessels and platforms.

Creon continues to monitor closely its investment in YZJ Offshore and the board is confident that YZJ Offshore will secure at least one significant order for a new offshore marine vessel before the end of the current financial year. In addition to the JV Agreement Creon is currently in discussions over a number of other investments in the oil and gas sector, including a potential strategic stake in a resource trading business. Further updates will be made in due course.



The Company remains well capitalised with a strong balance sheet. The board would like to thank its shareholders for their continued support and remain cautiously optimistic about the Company's future.





CREON RESOURCES PLC

Group statement of comprehensive income

for the six months ended 31 July 2012

[share_shark] 27/4/2013 07:49

Yangzijiang Shipbuilding (Holdings) Ltd. is an investment holding company. It is engaged in the agency service for shipbuilding and related activities. It operates in two segments: Shipbuilding segment and Investment segment. The principal activities of shipbuilding segment are that of shipbuilding, ship breaking, offshore marine equipment construction, and ship design. On August 24, 2011, the Company acquired 31.5% interest in Wuxi Runyuan Technology Micro-finance Co., Ltd. On December 5, 2011, the Company acquired Jiangsu Huayuan Metal Processing Co., Ltd. In January 2013, it announced the incorporation of a subsidiary, Jiangsu Leyuan Innovation International Trading Co., Ltd. In February 2013, the Company acquired remaining 40% interest in Shanghai Henggao Ships Design Co., Ltd. In April 2013, the Company through its 51%-owned subsidiary, Jiangsu Yangzi Changbo Shipbuilding Co., Ltd acquired the remaining balance of 8.33% interest in Jiangsu Bawei Port Development Co., Ltd.



Exciting innit !?.

[share_shark] 26/4/2013 18:59

The latter ryan83, in my opinion.

edit.

Thu Jan 10, 2013 9:03pm EST

Shares of Yangzijiang Shipbuilding (Holdings) Ltd rose as much as 6.5 percent on hopes that improving Chinese trade data would translate into more orders in the longer term.

China said on Thursday its exports grew 14.1 percent in December from a year ago to hit a seven-month peak, handsomely beating market expectations of a 4 percent rise.

"Shipping related stocks are in play because of the good Chinese trade data. With better trade, shipping could improve, which could in turn benefit the shipbuilders," said a local trader.

Yangzijiang shares climbed 5.1 percent to S$1.135, while rival COSCO Corp (Singapore) Ltd was up 5.1 percent at S$1.035. Both were the third and fourth most actively traded stocks by value.

Container shipping firm Neptune Orient Lines Ltd gained 0.4 percent, extending Thursday's 7 percent gains. Hutchison Port Holdings Trust, which operates ports in China, rose 3 percent to S$0.845.

0950 (0150 GMT)


Financials

[ryan83] 26/4/2013 18:32

yeah, struggling too. Also YZJ holdings are a billion dollar company. They surely could have just stumped up all the cash - approx $30mn. Why allow a company as small as CRO take over half of the JV (using the investment split). Are YZJ holdings not to bothered/interested/convinced in the JV business or did CRO hold the aces or bring the deal to the table and the JV was on CRO terms.

[share_shark] 25/4/2013 20:23

Qatar Investment Corporation

[share_shark] 25/4/2013 20:19

Major Investors. I just love this bit. :-)

Qatar Investment Corporation

Dune Engineering PTE Limited

Global Tech Investments 1

Pershing Nominees Limited




72.84

6.19

6.30

3.06

[share_shark] 25/4/2013 20:08

Hi ryan. Still trying to work it out myself.

[share_shark] 25/4/2013 20:05

Yes it was Mike.

This is the RNS which made up my mind to accumulate further stocks to add to my holding here. Read it all if you have a mind to.



Portfolio Update: $170m drilling rig order secured !!!!!!!!!!!!!!!!!!!!!!


Portfolio Update: $170m drilling rig order secured
The directors of Creon (AIM: CRO), the resources infrastructure investment company, are delighted to announce that Jiangsu Yangzijiang Offshore Engineering Co. Ltd. ("YZJOE") has entered into a contract valued at US$170 million with Explorer I Limited to construct and deliver one unit of a Le Tourneau Super 116E Class design self-elevating Mobile Offshore Jack up Drilling Rig. Creon's 46.45% owned joint venture with China's third largest ship building group, Yangzijiang Shipbuilding (Holdings) Pte Ltd (SP:YZJ), has a 40% holding in YZJOE. Explorer 1 Limited is 100% owned by Mena Offshore Investments Limited ("MENA") and managed by Offshore Logistics (Asia Pacific) Pte Ltd ("OLAP").
Delivery of the Rig is anticipated in the second quarter of 2015. It will be built to ABS Classifications and capable of drilling to 30,000 feet in sea depths of up to 350 feet. The rig will be fully equipped with state of the art drilling equipment and will have accommodation for 120 people.
Construction of the offshore mobile drilling rig will take place at the existing yard of Creon's joint venture partner, Yangzijiang Shipbuilding, in Jiangsu Province, China.
None of the directors or substantial shareholders of the Company have an interest, direct or indirect, in the contract.

[mike111d] 25/4/2013 19:25

Decent progress for CRO today.

[ryan83] 25/4/2013 12:21

shareshark,

regarding this investment

"Completed its first investment in the offshore oil and gas infrastructure sector with US$15.3 million (cGBP9.8 million) joint venture with multi-billion dollar China based shipbuilding giant, Yangzijiang Shipbuilding (Holdings) Ltd (the "JV Investment")"

How does this work, how do CRO see an uplift in value? Is it simply a stakeholding of £9.8m and what % of YSHL does this represent? Do we know what YSHL profits/revenues are? Just trying to ascribe a value to the £9.8m invested

[mike111d] 25/4/2013 12:15

And up again ;-).

[share_shark] 24/4/2013 23:41

79.13% of Creon shares are not in public hands !.

Percentage of AIM securities in issue and not in public hands

As of the 12 November 2012, 79.13% of Creon shares are not in public hands.

[share_shark] 24/4/2013 23:39

It is the top qualtiy of the BOD and their huge investment in the company, also which, encouraged me to increase my holdings here.

The shareholders are topnotch also with a limited amount of shares in the free float.

This is an excellent RNS from OCT last year and so I repeat it again.

Creon Resources Plc
Interim results for the six months ended 31 July 2012
Creon Resources Plc (AIM: CRO) ("Creon", the "Group", or the "Company"), the resources and resources-infrastructure investment company, today announces its interim results for the six months ended 31 July 2012.
Period highlights:
-- Raised GBP12.1 million through an open offer to all shareholders to implement its investment policy (the "Open Offer"); and
-- Completed its first investment in the offshore oil and gas infrastructure sector with US$15.3 million (cGBP9.8 million) joint venture with multi-billion dollar China based shipbuilding giant, Yangzijiang Shipbuilding (Holdings) Ltd (the "JV Investment").
Post-period highlights:
-- Mr Ghanim Al Saad joins board as non-executive Chairman; and
-- Mr Glen Lau joins board as Chief Executive Officer. Glen Lau, CEO of Creon, commented:
"Creon has been transformed over the last 6 months and we are pleased to have secured the financial future of the Company through the successful Open Offer. The JV Investment was the culmination of a great deal of hard work and we are delighted to be able to call upon Mr Ghanim Al Saad as our chairman. We remain cautiously optimistic about the Company's future."

[napoleon111] 23/4/2013 09:58

up a tad this morning nice to see, way too cheap!

[share_shark] 23/4/2013 08:44

Someone paid a premium yesterday afternoon for 2million.Our persistent buyer ?.


22-Apr-1315:54:350.702,000,000Buy* 0.500.6014.00kO Trade Type:
Ordinary

[share_shark] 23/4/2013 08:19

Seems as if only three of us here guys ?. :-/

Blue this am though.

[share_shark] 22/4/2013 10:46

Ah ha. ON the move ?. Interesting.

Off the radars and undervalued.

[share_shark] 19/4/2013 21:01

Looked that way to me Mike. Interesting as you say but what do I know anyhow.

[mike111d] 19/4/2013 20:52

Interesting, looking at the trades this week buys outweigh sales buy some margin and yet the price is down - trying to fill a buy order?

[share_shark] 19/4/2013 20:00

79.13% of Creon shares are not in public hands !!!!!!!!!.

Percentage of AIM securities in issue and not in public hands

As of the 12 November 2012, 79.13% of Creon shares are not in public hands.

Significant Shareholders

As of the 13 November 2012, based on the shareholder register the following parties have holdings of 3% or more of the voting share capital of the Company:






% of issued Ordinary Share capital






Qatar Investment Corporation

Dune Engineering PTE Limited

Global Tech Investments 1

Pershing Nominees Limited




72.84

6.19

6.30

3.06

[mike111d] 15/4/2013 19:13

I see that another 2m were bought late today.

[share_shark] 12/4/2013 15:38

Bullish signal

[napoleon111] 11/4/2013 12:01

holder in both so happy out :)