IGDX to go into gold mining

Datuk Seri Najib Tun Razak touching a crystal ball to mark the official celebration.With him are (from left): Malacca Chief Minister Datuk Seri Mohd Ali Mohd Rustam, IGDX chairman Dr Mohd Yunus Mahmood and Datuk Dr Shamshudeen

Source from The Star, 16 February 2007

By SABRY TAHIR

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

Chief executive Datuk Dr Shamshudeen Yunus said the company, which may go into it as early as this year, would inject at least A$20mil for the acquisition and operation of mines, including buying special ore separation machinery.

The company planned to buy two mines in Malaysia and “a couple” in Australia, he said.

“We need to raise the funds to do all these. We may have to go for more listings, “he said.

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

On Feb 9, 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. Shamshudeen is the largest shareholder.

Shamshudeen said IGDX – a listing vehicle formed by gold dinar and ornament trader E-Qirad group – was the world’s first listed company doing physical gold trading.

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 Wednesday, Shamshudeen said.

He said IGDX chalked up 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 selling them at prevailing prices,” Shamshudeen said, adding that 8% of the revenue was allocated for the company’s syariah-based profit-sharing programme with the gold dinar owners.

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

Deputy Prime Minister Datuk Seri Najib Tun Razak, who was present at the event, said the Government would firmly support the role played by E-Qirad, especially in new areas of growth under the Ninth Malaysia Plan.