Do you know that after air and water, what is the most used natural resource?
No, it's not crude oil or natural gas. But sand.
The global demand for sand and gravel is currently standing at 40 to 50 billion tonne per annum, and that is twice the amount of rivers can produce globally, and sooner or later, sand will be facing another issue of shortage!
So, are there any mining companies that mine sand in malaysia?
The short answer is no. But there is a new company that involves in doing so, and they had successfully secured multiple contracts, just to recap:
(i) a letter of intent from Boyijun Resources (HK) Limited on 22 April 2020 to purchase natural sand in bulk, with an indicative contract value of approximately USD26.6 million (equivalent to approximately RM110.6 million) for a period of up to December 2021 with an option for extension;
(ii) an award from Guangzhou Kaishengda Industrial Co. Ltd on 4 May 2020 for the purchase of river sand and river mouth sand with a contract value of approximately RMB44.8 billion (equivalent to approximately RM27.4 billion) for a period of 15 years; and
(iii) a letter of intent from Techpack Solutions Co. Ltd on 27 July 2020 for the supply of silica sand, with an indicative contract value of up to approximately USD79.5 million (equivalent to approximately RM330.7 million) for a period of 5 years.
So, based on the uniquness of the company AGES should worth around 10 to 15 times P/E.. We have not factored in the demand surge for the glass vial consumed for the vaccines! The trailing 4 quarters P/E for AGESON is currently running at 3.45 times, and the current stock price is RM 0.140 per share! Times that by 4, what price would you get?