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Wednesday, February 28, 2007

IGDX Holdings planning to go into gold mining

Source from The Star, 15 February 2007

By Sabry Tahir

KUALA LUMPUR: Malaysian-owned gold trading company IGDX Holdings Ltd, which made a satisfactory debut on the Australian Stock Exchange (ASX) on Feb 9, plans to go downstream into gold mining in Australia and Malaysia, earliest by this year.

Chief executive Datuk Dr Shamshudeen Yunus said the company planned to inject at least A$20mil for the purpose of acquisitions and running of mines, including buying special ore separation machinery.

The company plans to buy two mines in Malaysia and "a couple" in Australia, he said.

"We need to raise the fund to do all this. We may have to go for more new listings," he said.

IGDX plans to be listed on the London Stock Exchange and the New York Stock Exchange in three years, Shamshudeen said after the official celebration on Wednesday for IGDX's listing on the ASX.

The company, which is involved in gold trading and refining became the first Malaysian company to be listed on the ASX' metals and mining sector and remained 100%-owned by Malaysian investors with Shamshudeen as the largest shareholder.

Shamshudeen claimed IGDX - a listing vehicle formed by parent company, gold dinar and ornament trader E-Qirad group - is the world's first company to be listed based on gold-for-gold trading on a stock exchange.

The company raised A$2mil from the initial public offering of four million A$0.50 shares. The counter closed at A$0.66 on Feb 14, Shamshudeen said.

He said IGDX chalked RM9mil in pre-tax profit on the back of RM3.2bil in revenue for the year ended June 30 2006.

"We make our profit from buying scrap gold, turning it into fine-quality gold dinar and ornaments and sell them at prevailing prices," Shamshudeen said adding that 8% of the revenue was allocated for the company's shariah-based profit sharing with the gold dinar owners.

With a buying capacity of 200kg to 250kg of gold a week, the company mainly sourced its gold supply from Indonesia.

He said IGDX had projected an annual profit growth of 10% to 12%.

2 comments:

Penny Stock Tips Advice said...

Their are exchange traded funds specializing in junior gold mining companies.

Unknown said...

If you have scrap gold which you don't need or get new one then you have a choice to sell this and get new one which is for you.
Sell Scrap Gold