Shaft Sink Share Discussion Threads

[mega_trader] 30/8/2013 07:58

The results, under the circumstances looked very good and point to a positive future imo. All the doom mongers wrote this off (with some reasoning) but it seems clear this now undervalued in the long term. The improvement in margins is the standout for me.

[rcturner2] 30/8/2013 07:48

Charming, coco.

[wylecoyote] 30/8/2013 07:25

not a bear anymore. Results are positive....the only drag may be the eurochem project.

[hedgehog 100] 29/8/2013 21:27

Hi Cocomac0,

Hopefully SHFT's interims tomorrow will bring you one step closer to that wide-screen TV you're after!

I'm very confident here, which is why I've recently 'averaged down' big time: approximatley doubling my number of SHFT shares, and reducing substantially my average SHFT price from my original level of about 40p, taking it down well into the 20s.

At SHFT's current price of 24.5p, I'm now only about 10% down ... which is not too bad compared to anyone who bought in at over 190p!!


SHFT stated in its final results announcement in April that investment decisions for major mining projects were being delayed -

29/04/2013 07:01 UKREG Shaft Sinkers Holdings Plc Final Results
"The past year has been a challenging and turbulent one for the global economy and especially the mining industry. Amid shareholder calls for stricter capital allocation and greater cash returns mining companies are under pressure to be more selective in the development of new projects. Generally this has resulted in a reduction in capital expenditure or a slowing down of investment decisions for major projects."



But today's SHFT announcement suggests that things may be starting to speed up again. And that makes logical sense.

An improving global outlook & pressure to replace depleting resources & maintain production should naturally encourage mining companies to refocus on growth in the final third of 2013.

Albeit priority will be given to the lowest-risk, highest-quality, highest-returning projects, as there is far less equity and debt funding available.

[cocomac0] 29/8/2013 19:28

Get lost RCT, nobody wants to hear from you with such messages

[rcturner2] 29/8/2013 18:32

Nice to see you back finally posting since the 5th July, hh.

I can't imagine why you were hiding.

[hedgehog 100] 29/8/2013 18:15

At last!!!


29/08/2013 07:01 UKREG Shaft Sinkers Holdings Plc SHFT preferred bidder in Kazchrome JSC tender LSE:SHFT Shaft Sink

"Shaft Sinkers preferred bidder in Kazchrome JSC tender

Shaft Sinkers Holdings plc (LSE:SHFT), the international shaft sinking and underground construction group, announces that its subsidiary company, Shaft Sinkers Kazakhstan LLP, has been selected as the preferred bidder in a public tender for Kazchrome JSC. The project award, valued at approximately $75 million is subject to the negotiation and conclusion of a contract scheduled to be completed by the end of September 2013.

The project entails the sinking of the Skipovaya vertical shaft to access a ferrochrome ore-body at the Donskoy ore processing plant in the Aktujbinsk region, Kazakhstan. The scope of work includes the sinking and lining of an 8m diameter skip shaft to a final depth of 1,453 metres.

Kazchrome JSC manufactures, supplies, and exports ferroalloys to steelmakers in the Americas, Europe, and Central and South-East Asia.

Speaking today, Alon Davidov, Chief Executive, said:

"We are very pleased to be selected as the preferred bidder on this project as it is in line with our diversification strategy. This project introduces the Group to a new client and country as well as increasing our commodity basket with ferrochrome.""

[mega_trader] 29/8/2013 12:11

Had a feeling the mm's were looking for stock yesterday. Good to see a significant project outside Africa, and a prefered bid to convert from their project pipeleine. Probably 3-6+mil profit from one project? A few more to come as promised by management imo.

[noirua] 29/8/2013 07:18

Shaft Sinkers SHFT - major contract in Kazakhstan:

Shaft Sink Shaft Sinkers Holdings Plc SHFT preferred bidder in Kazchrome JSC tender

[mega_trader] 27/8/2013 12:32

Looks like gold miners could be busy from this year on imo.

[mega_trader] 26/8/2013 16:07

Hec, you could say gold is out of intensive care now, and at least stable. That should help all sides in the long term.

[hectorp] 26/8/2013 15:35

I agree generally mega_trader though there is a major worry about South African mining generally, but in particularly their manpower /political activism/ etc.

[mega_trader] 26/8/2013 15:06

Gold keeps rising, china stocking up its reserves, and india buying all they can which means a possible supply deficet for the west/rest, and is well off its lows, looks like returning to production viable levels in the long term, and that has to good for shft.

[mega_trader] 23/8/2013 12:35

All the gold miners looking positive and recovering strongly from a year of being oversold by shorters and a demand coming back for precious metals, this might give a better outlook for shft, especially at this level (nav value 80-90p).

[gucci] 19/8/2013 15:22

:-) on the move

[gucci] 15/8/2013 13:05

45 first stop on chart imho

[dewtrader] 15/8/2013 11:26

ENRC management about to launch a bid?

[dewtrader] 15/8/2013 11:23

whats woken this sleeper up?

[downsize] 14/8/2013 08:08

So where now?

[mega_trader] 08/8/2013 23:47

What's your vector victor:-) 30p sounds good, bit of a discount to the 150 float price.

Some serious buying volume over the past few days, institutional buyers and pi's. Could be news on covenant agreements as hinted by the recent broker note, or contract news.

You always get sellers leave after they make a 20 percent gain, usually just before it rises again from what are still historic low levels.

[downsize] 08/8/2013 13:54

That put the kibosh on that then :-/

[downsize] 08/8/2013 11:27

I've been using Vectorvest recently to validate my logic in valuing stocks which I will normally do based purely on fundamentals and forecast earnings picking only safe steady earners with good dividends and growth. Last year, my first serious investment year, with extreme patience and a huge learning curve saw 32 investments yielding 22% growth over my entire holding.Vector-vests claim is to combine the fundamentals evaluation method to identify safe investments with the technical analysis method to add the dimension of timing entry, exit and using a stop loss system, all of this I am sure everyone on the board will know already. So far a month in my pilot is working extremely well.Vector-Vest which has a global client base (yes the yanks are like sheep) has an share price valuation on SHFT of 30.13p which may not be reached immediately but that is what hey think it is worth all the same.Just thought I'd share that with you.Happy hunting.

[muckshifter] 08/8/2013 10:27

Noirua,
Just as a matter of interest, as you still seem to half believe in Helmer's daft conclusions, I noticed yesterday on the Sirius thread a very interesting RNS about their Whitby project.
You may or may not remember, but on the other thread (I think) I did a couple of guesstimates of Eurochem's production costs to illustrate the stupidity of Helmer's article. One was based on UKCoal's reported mining costs and came out to something like a maximum of $140/tonne for breakeven, and the other a few weeks later was based on the presentations of Eurochem's neighbour, Uralkali, and came out to about $137 / tonne worst case, iirc.

I suggest you read the Sirius RNS of 6th August, where they indicate that they would be profitable at $112/tonne.

Then consider the similarities and differences between the two projects. They are remarkably similar in terms of their capital costs, outputs, resources etc, with Sirius being somewhat higher capital cost initially (but of course the shft shaft failure will be detrimental to Eurochem's cost unless they get the full $800m cost of late completion).

The actual mining costs, however, should more than make up for that. In UK opencast, fuel would probably be about 20% of operational cost, labour 35%, but I would think the labour element would be much higher in deep mining - you could get an indication from coalfield resources old reports if necessary, but I would think it's likely to be of the order of 60% in the UK.
Both those cost elements would be drastically lower in Russia.

So I consider Helmer's homemade "breakeven" price of $500 to be so ludicrous that the man must be either stupid, or one who believes his readers are stupid.
Regards.

[technofiend] 06/8/2013 13:20

Huge rise but we are barely back to where we were before the profits warning last month.

Does SHFT have to issue a statement if the stock prices rises much further? Or is that only if it rises 50% or so in one day