Hi guys, Please read to the end while we type now
Last friday OCR Jv with Pahang Govt securing ECRL job award powered up
WZ SATU to 24 sen with increasing volume to 43 millions shares traded!
That triggered our enthusiasm!
In fact we have been wondering why Insiders/Directors were buying up so many WZ Satu shares from the open market
Something brewing?
see
WHY DID THEY BUY? OR WHAT IS GOING TO HAPPEN IN WZ SATU IN COMING MONTHS?
That piqued our interest. So let's do an investigation
There are 4 Reasons
1) REVIVAL OF BAUXITE MINING IN PAHANG
See this news
Bauxite mining to start once operators are ready, says Pahang MB
Bauxite
mining operations can begin anytime now so long as the operators are
able to abide by the standard operating operators (SOP) set by the
Water, Land and Natural Resources Ministry. - NSTP File pic
KUANTAN: Bauxite mining operations can begin anytime now so long as
the operators are able to abide by the standard operating operators
(SOP) set by the Water, Land and Natural Resources Ministry.
Pahang Menteri Besar Datuk Seri Wan Rosdy Wan Ismail said operators
interested to carry out bauxite mining activities need to apply
officially with the state government and ensure they fulfil all the
requirements needed.
"Bauxite mining operations is just waiting to be resumed. We already have an agreement with the ministry.
Calvin comments:
Tin mining made Sungai Lembing the Richest Town in its Hayday. Now is
Aluminium (Bauxite). In fact Bauxite mining contributed the Bulk of WZ
Satu's earnings
How?
See this
The
existence of bauxite minerals in Kuantan District have been recognised
by the Geological Survey in 1937 with the area is underlain by basalt and associated doleritedykes, which cut the underlying rocks.[5] Beginning
from 2013, the government began to start small-scale bauxite mining in
the area of Balok before being expanded into Goh Hill, Sagu Hill and
Karang River.[6] With neighbouring Indonesia moved out from their long-time bauxite mining industry to be replaced by domestic metal processing
industry with an immediate ban being enforced on the mineral mining in
early 2014, this subsequently causing the shortage of worldwide supply
particularly to China.[6][7] The Malaysian state of Pahang which has deposits on
the minerals taking the opportunity to fill in the demands with the
involvement of many unscrupulous parties with unregulated mining
methods.[6]Following
Malaysia's participation in the markets, their annual output of bauxite
subsequently increased from over 200,000 tonnes in 2013 to nearly 20
million tonnes in 2015, becoming the world's top producer which
accounting for nearly half of the supply to China's massive aluminium industry.[8]
Ha! The banning of bauxite export by Indonesia made Malaysia The Top Producer of Bauxite!!
Read again
Following
Malaysia's participation in the markets, their annual output of bauxite
subsequently increased from over 200,000 tonnes in 2013 to nearly 20
million tonnes in 2015, becoming the world's top producer which
accounting for nearly half of the supply to China's massive aluminium industry.[8]
NO WONDER THIS SHOWED UP IN THE GROWING PROFITS OF WZ SATU'S PROFITS IN YEAR 2015
See
Review Of Performance (Refer to August 31st Year 2015 Qtr report of WZ Satu)
Quarter-To-Date
Forthecurrentquarter,theGroupgeneratedRM113.0millioninrevenuewithcivilengineering,constructionandoil&gascontributingRM89.3million.Thisrepresents79%oftheturnover,theotherbusinesses
contributed the balance 21% of the turnover which amounted to RM23.7
million.
TotalcomprehensiveincomeattributabletoshareholdersoftheGrouphasleapttoRM21.9millioninthecurrentfinancialyear,whichismorethandoublethecorrespondingincomefromlastfinancialperiodofRM10.7
million ( for the 16-month period ended 31 August 2014 ).
TheGroupregisteredalowerprofitaftertaxationofRM5.1millionascomparedwiththepreviousquarterof
RM6.7 million due to higher loss after taxation incurred by
manufacturing and other businesses.
On an after tax basis,mining business contributed RM5.6million; civil
engineering,construction and oil&gas contributed RM1.8 million
whilst manufacturing and other businesses incurred losses of
RM2.3million
MINING OF BAUXITE = RM5.6 MILLION PROFIT
O&G = RM1.8 MILLION PROFIT
OTHER BUSINESSES INCURRED LOSSES OF RM2.3 MILLIONS
IF BAUXITE MINING WAS SO PROFITABLE THEN WHAT HAPPENED?
Unscrupulous mining activities without regulated mining methods
Outcome
34 contractors licence revoked, moratorium and ban on bauxite mining in the area until 2019
The 2015–16 Kuantan bauxite disaster is an ecological disaster which occurred from 2015 to 2016 onwards in Kuantan District of Pahang in Malaysia. The unscrupulous bauxite mining was blamed for causing soil pollution particularly along the lane of Kuantan highway where the lorries carrying bauxite which also spread to waters around
the district, causing the environment to turned red as a result from
unregulated mining activities that posed health hazards to both mine
workers and the district surrounding communities lived along the mine
routes
AS A RESULT 34 CONTRACTORS HAVE THEIR LICENCE REVOKED! AND BAUXITE MINING WAS BANNED TILL END 2019!
NOW MANY NO LONGER IN PLAY AS THEY ARE EITHER TOO SMALL OR CANNOT MEET THE STINGENT HEALTH AND SAFETY RULES
THAT MEANS WZ SATU WILL NOW GET AN EVEN BIGGER SHARE OF THE BAUXITE SPOILS!!
JUST LIKE MALAYSIA EXAM GLOVES HAVE CAPTURED 65% OF WORLD GLOVE MARKET =
MALAYSIA IS THE WORLD'S LARGEST EXPORTER OF BAUXITE ONCE MORE = AND WZ
SATU STANDS OUT TO REAP THE MOST!!
Read again ONE MORE TIME!!!
Following
Malaysia's participation in the markets, their annual output of bauxite
subsequently increased from over 200,000 tonnes in 2013 to nearly 20
million tonnes in 2015, becoming the world's top producer which accounting for nearly half of the supply to China's massive aluminium industry.[8]
Now from Year 2017, 2018 & 2019 when Bauxite mining was banned the
earnings of WZ Satu also gone down - followed by its share price. Until
Now When BAUXITE MINING IS IN REVIVAL!!
In fact Management of WZ Satu has been anticipating this GLORIOUS TURNING MOMENT AS WELL
See their Jan 2017 Report
Besides the uncertainties in the global commodity markets for
bauxite,the environmental issues of bauxite mining in Kuantan,
Pahang,has resulted in a moratorium imposed by the Government of
Malaysia on bauxite mining in Kuantan effective since 15 January 2016. Even
though this would continue to impact the Group's share of current
associate results, the Group considers this to be a temporary setback
and the mining segment contribution to the Group will eventually
improve and be recurrent into the future.
Let try to understand
Even though this would continue to impact the Group's share of current associate results,
YES THE RESULTS OF WZ SATU WERE BADLY IMPACTED SINCE MINING OF BAUXITE WA BANNED FOR YEARS 2017, 2018 & 2019!
Read further
the Group considers
this to be a temporary setback and the mining segment contribution
to the Group will eventually improve and be recurrent into
the future.
YES! THIS IS ONLY A TEMPORARY SETBACK
BECAUSE THE MINING CONTRIBUTION TO THE GROUP WILL EVENTUALLY IMPROVE AND BE RECURRENT IN THE FUTURE
AND THE FUTURE IS NOW! NOW!! NOW!!!
Before Bauxite was banned WZ SATU TRADED FROM RM1.68 TO RM1.00
SO AFTER BAUXITE MINING IS LIFTED WILL WZ SATU RETURN TO ITS GLORY DAYS OF RM1.50?
If so then from 24 sen to Rm1.50 will be more than 500% upside!
3 More Catalysts to go ..... ECRL Job award & etc
Tired now. Will continue another time
Thanks for reading
Best regards
Calvin Tan Research
Singapore
Please buy or sell after doing your own due diligence.
