Steppe Cement Share Discussion Threads

[mach100] 09/12/2015 20:01

azales I mean when it hits 12p bid I am out to cut my losses.

[azalea] 09/12/2015 10:57

Mid January, we should get a preliminary update for the year ending 31/12/2015

[azalea] 09/12/2015 09:31

Mach 100
You dont' mean a bid price of 12p, do you. It's already 13p

[mach100] 08/12/2015 19:39

Good posts Azalea, This is perilously close to me cutting my losses I must say. I have collected a few divis but the share price is disastrous. I hope it recovers from here but if it hits 12p I am out, having bought at 33p.

[azalea] 08/12/2015 09:40

An interesting situation in the making.
Following Mr Hamzah recent 3.575m purchase, if any of the very recent large buys are also of his doing, then it brings him ever closer to the 30% level In which case there are a number of considerations that come into play. If there is no RNS , it might be because the percentage increase is not large enough.

1.In the case of STCM, is it subject to the rule that a 30% holding automatically triggers a bid?

2.If Q1, is affirmative,is Mr Hamzah intending to make a bid? If not, is he topping up his holding in the belief that the share price is too cheap vis a vis the NAV of 43p. add to that, he might well be aware that one or more parties are showing an interest of making a bid. With the value of the Chinese Yuan having been reduced and set to become a reserve currency, a Chinese cement company already importing into KZT, might just fit the bill.

3. Have the latest large buys been made by current major holders, or new comers, both of whom believe that one way or another there is money to be made in the near term?

4. The quality of the assets are very solid - 300 new rail wagons, that are creating $1m in savings each year from having to repair, service and hire older wagons. Huge investments have been made in converting two production wet lines into two modern highly productive and efficient dry lines.

5. Disregarding the latest large buys, I calculate the holdings of major holders now total 77.9%.

[hari] 08/12/2015 08:12

However as you stated you can sell @12.7P..but now sell at 13p!
so there is buyer and MM want stock

[hari] 08/12/2015 07:59

those trades do look interesting, however I am struggling to buy on the back of that.what market woyld you give now..forget NAV values

alot of debt to be paid and devaluing currency

-- On 20 August 2015, the KZT was allowed to float and it sharply depreciated 30% from 188 KZT/USD to 240 KZT/USD. There is no current trading band for the KZT and its future evolution will be tied to the oil price as well as the Rouble KZT exchange rate. The company had, at the time of the devaluation, a net exposure of USD23 million in foreign loans.

4. Financing

-- The debt position of the company on 30 June 2015 comprised:

o A VTB Bank loan of USD22 million at 6.2% interest. A USD5.5 million principal payment was made in July 2015 and the Company retains a holding of USD5.5 million in cash to meet the USD5.5 million principal repayment due in November 2015. The remaining USD11 million is repayable during 2016;

o A long term USD13 million loan outstanding to VTB Bank for the purchase of the wagons and repayable monthly till March 2019 at 7.2% and secured with the pledge of the wagons; and

o A 1.45 billion Kazak Tenge bond outstanding for redemption in November 2017.

-- We have maintained KZT3.7 billion of available working capital lines from Halyk Bank and Altyn Bank.

-- On 19 June 2015 Steppe's operating subsidiaries signed a loan agreement with Halyk Bank JSC subsidised by government programs. The loan comes at a fixed interest rate of 6% per annum and is available for drawdown over the year to 19 June 2016. The loan totals 2,188 million KZT, and comprises of:

o 500 million KZT for 5 years working capital on revolving basis.

o 1,688 million KZT for capital investment of which

-- 1,188 million KZT have 2 years grace for principal and 8 years repayment

-- 500 million KZT with no grace period and 10 years repayment.

-- The loan will be used to partly replace the current working lines and for the capex requirements of 2015 and 2016 mostly in cement milling, utilities, packing and logistics.

-- Steppe Cement will not pay a dividend in this calendar year and will use the available cash flow to pay down mostly USD denominated debt.

[azalea] 07/12/2015 13:49

Wow! A 500K @ 13.75P. That makes 2m today,

EDIT; Bid 12.70p.

[azalea] 07/12/2015 11:30

So, who has bought the two lots of 750K @ 12.8p?

[azalea] 04/12/2015 09:46

HARI
The likes of us might not know what the game plane is here, however Mr Hamzah with his recent purchase and the 500k buyer yesterday, must have something in mind. To than end, with the share price so low, I am sticking with it come rain or shine. Mr Hamzah only has to fork our circa £366k to take his holding to 30% and trigger a bid.

[hari] 04/12/2015 07:53

Azalea,

Yes large trades and then the price drops.

I see the currency has deteriorated even further.

It was From 182:1 to 270:1 on the last update. Now to approx 450:1

This is looking really bad.

Looks like big buyers are not any wiser than you.

[azalea] 03/12/2015 16:29

Some interesting large trades going on today, especially late pm -a 500k buy.

[azalea] 26/11/2015 15:27

FIREBIRD upped its stake by 1.6M @ 33.5P 20/3/14, Given that other major holders collectively outweigh a mandatory 30% bid, if Mr Hamzah were to make a bid it will have to be in excess of 30p, to win over any opposition.

[azalea] 26/11/2015 14:29

Hari
Each to their own.
Today's news of the largest holder upping his stake BY 3,575,000 to 28.71%,could be for one if not two reasons.

1 Shares are cheap as chips when compared against its NAV(45p -2014).

2. Mr Amzi Wan Hamzah, is preparing to make a bid.(his last purchase of 1.8m 24/10/2014 was at circa 36p).

[hari] 24/9/2015 08:53

I rather be a non-holder, than a holder here azalea.

You bullishness and failure to look ahead is not your strong point.
I see you fall in love once you buy in, and anyone who challenges you, you feel difficult to deal with and spout on about Modi.
Then just cannot let go of your holding because it is loss-making.

Good luck here, you will need it. It may come good further down the line if you hold long enough, but that is a gamble.

[azalea] 22/9/2015 16:31

There is a serious volume{x10 the 90day average] changing hands to day.

Hari the only thing you know about Modi is what you have recently read up. You were easy to spot as a non holder -talk but no substance.

[hari] 15/9/2015 07:33

Good post Mattjos.Yes the debt payments are going to be very challenging now.

Azalea - I ndo ot hold. Would not buy this.I just found it odd , you were talking to yourself here and had a clouded vision of your investment. You talk a good game, but have notforward thinking and are quite a naive investor. Hates the contrary view.

I know a hell of lot about Modi, thanks to your verbal diarahea.

[mattjos] 14/9/2015 21:01

KZT down another 5% against the USD since the results RNS. They are going to have to run faster and faster just to stand still, given the Debt repayment schedule through 2015 & 2016.
They are rather caught at present with Russian cement finding its way into the market due to the weak RUB and the revenues they do earn being in KZT v Debt denominated in USD. This will likely deteriorate further if the Fed raises rates and accelerates the already huge flight of USD from Emerging markets.
There does not seem a natural hedging tactic that they can adopt at present other than slowly dribble the loans over to KZT as/when they are able to find a local willing lender. Wont take much in the way of a domestic recession to see them risk breaching the loan covenants in 2016


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[azalea] 11/9/2015 11:48

Hari

You obviously know nothing about PM Modi, the most successful of CM the state of Gujarat has ever had. His BJP previously ridiculed in earlier days by failed, corrupt coalition governments, yet in 2014 received an overwhelming mandate from the people to correct the ills of his predecessors. since becoming PM, Modi has attracted circa $100bn worth of investments from foreign governments and private institutions. A country heading for growth in GDP of 7% this FY, with more to come during his first term in office. A PM who plans to bring electricity to every home, despite 18,000 villages currently without electricity. All of which does not say much for you describing these facts as spouting.

IF you hold STCM, then you can always sell, rather than blame others for your own decision to buy.

[hari] 11/9/2015 08:34

Azalea,

Aren't you the one that spouts on about Modi. It is a shame he does not run this country, we would not the last of it.

"The timing is interesting -ahead of the Interims this month.'

H1 mixed results. Yes that is very interesting!!

You can do better than that, maybe in the next 6 months hey, you will get it right if you hold on long enough, unless things turn for the worst.

You come across one of those investors, that talks a good game but the RNS' keep disappointing and makes you appear a naive investor.
And if he share suddenly comes good, you will be saying I told you so.

[azalea] 11/9/2015 07:52

H1 mixed results; but better things to come H2.

[azalea] 02/9/2015 07:13

Never mind yesterday's, today's rns announcing Consilium Inv Man taking a 5.08% stake is excellent news. By my reckoning that takes collective major holdings to 76%. The timing is interesting -ahead of the Interims this month.

[mattjos] 01/9/2015 22:46

todays RNS .. cost-saving or placing imminent?

[azalea] 20/8/2015 15:11

FWIW Extracts)
FTSE 250 KAZ Minerals PLC. (+11% 174p); reported today a swing to a small Ptx profit for HI 2015.

In H1 2014, the company booked a USD 180M loss on currency exchange. This was not repeated in H1 2015. It reported that the devaluation of the Tenge would drive down costs at its operations. The recent devaluation in the Chinese Yuan and the decline in the Russian currency are also significant to KAZ as both are major trading partners. Kazakhstan's Central bank stated today it would allow its currency to float freely.

[mattjos] 20/8/2015 13:18

23% Devaluation of the Kaz Tenge v the USD today. Their debt is in USD and revenues in local Tenge is it not?