LONDON, Dec 23 (Reuters) - South African-based Shaft Sinkers Holdings Plc SHFT.L, which builds infrastructure for underground mines, listed in London on Thursday so it can expand in India and the region surrounding Russia.
Its shares started trading at 130 pence, up 4.8 percent from the placing price of 124 pence, giving it a market value of 61.75 million pounds ($95.24 million).
The group is the top builder of vertical shafts in South Africa, home to some of the deepest mines in the world. It sunk the deepest ever shaft there at 3.1 kilometres.
"The listing will allow us to build on our strengths and expand into new industries and geographies requiring our expertise, particularly the CIS (Commonwealth of Independent States) and India," said Chief Executive Officer Alon Davidov.
Shaft Sinkers, originally part of miner Anglo American (AAL.L), is controlled by private mining group International Mineral Resources, according to its website.http://www.shaftsinkers.co.za/
[International Mineral Resources B.V. engages in mining and exploration services. The company is based in Amsterdam, the Netherlands. International Mineral Resources B.V. operates as a subsidiary of Eurasian Natural Resources Corp Plc.]
A placing of 24.7 million new shares raised 30.6 million pounds, most of which will be used to buy out some minority stakes, but it did not specify which ones. ($1=.6483 Pound).

Harry
Shaft Sinkers Holdings initiated with buy rating at Arbuthnot, target price 220p .

Ah, thanks.

A dividend is expected to start this year at 7.9p. They also have an order book of 475m, of which 160m is expected to fall this year.

I think it's a great little stock with great potential. Waiting to get some more in my ISA in April. So Momentum Investor looks to have been driving this up this week.

Shaft Sinkers Holdings plc ("Shaft Sinkers"; "the Group" or the "Company"), the international shaft sinking and underground construction group, is pleased to announce final results for the year ended 31 December 2010.

Financials
Revenue of GBP183.1 million up 24% to (2009: GBP147.9 million)

Profit before Income Tax of GBP16.7 million, an increase of 34% (2009: GBP12.5 million)

Basic Earnings per Share of 30p up 27% (2009: 24p)

Strong financial position with net Cash and Cash Equivalents of GBP11.1 million at year end (2009: net borrowings of GBP6.6 million)

Highlights

Successful listing on the London Stock Exchange on 23 December 2010 raising approximately 30.6 million

Committed 488 million order book over the next four years

Award of Styldrift contract with new clients Anglo Platinum and Royal Bafokeng Nation

Extension to Moab contract

disposal of Eureka gold mine stake in Zimbabwe
Commenting on the results Alon Davidov, CEO of Shaft Sinkers Holdings plc, said:

"I am pleased to report that the group has exceeded our expectations for the 2010 financial year. This year marked a new chapter in Shaft Sinkers' history with our listing on the London Stock Exchange on 23 December 2010.

"In 2011 we look forward to delivering on our strategy of expanding internationally using our solid funding base and to create value for our new shareholders."

Enquiries
Shaft Sinkers Holdings plc
+ 27 (0) 11 445 4407

Alon Davidov, Chief Executive Officer

Chris Hall, Chief Financial Officer

M:Communications
+44 (0) 20 7920 2330

Elly Williamson

Maryle Guernier

The market is clearly impressed - up 25 points {15%}

Broker note from Arbuthnot:
FY10 results are 4% ahead of our estimates for local currency revenues, 18% ahead at the operating profits line, and 18% ahead at the net income line. Management comments that the results are ahead of their own expectations. We maintain our Buy rating and increase our DCF-derived target price from 220p to 260p.

Headline revenues of 183m up 24% YoY (our estimate 165.5m), and up 7% in Rand to ZAR1943m (our estimate ZAR1870m), so this is a 4% beat to local currency revenues but operating profits are 18% ahead of our forecasts on a comparable basis (at 18m, including a 3.8m provision release and a 1.8 disposal profit; we had estimated 15.3m on the same basis). The beat at the operating level appears to be mainly due to lower operating costs than we had forecast, and slightly lower IPO charges (1.1m against our estimated 1.7m). Net income of 12.6m (+27% YoY) is 18% ahead of our estimate.
A note on our FY10 operating profits estimate: we had forecast 15.2m, but this did not include 1.8m expected profits on the Alpha stake or an anticipated 1.7m of IPO costs, so the comparable estimate is 15.3m. Reported operating profits of 18m are therefore 18% ahead of our estimate.

We make no changes to our underlying estimates for FY11; ZAR2311m (+11% YoY), and operating profit of 16.9m, but a much better cash position than we had anticipated (10.6m of net cash against our estimate of 3.2m of net debt) means we lower our net finance costs estimate for FY11 from 1.6m to 1m, and we reduce our estimate of annual LTIP charges from 1.5m to 1m. Net of minor tax adjustments, we consequently increase our FY11 net income estimate by 10% to 7.4m, or 10.1m adjusted for the IPO bonus charge which will be charged in FY11. On this basis the shares are trading on 7.7x adjusted FY11 earnings.

Cracking results. I used my ISA allowance this year to double up on my holding a couple of weeks ago. Should be a great hold.

It seems to me, that with money pouring into the mining sector at record levels, SHFT can only benefit.

Won't be long before we break the 2 barrier for good.

Reading elsewhere, tipped today by Small Cap Shares Team.

but it's yet another illiquid stock, so beware

Tipped today and sold on Monday.

But the upside is that several new contracts are being tendered for, so the surprise is more likely a pleasant one.

A prospective dividend yield of 4% and operating on about 9 times this years earnings . Profits are up 34% to 16.7 million They look pretty good to me.
The shares have had a good run , but certainly one worth holding , methinks.

Shares' reiterate their buy recommendation at 188 , saying more deals are in the pipeline.

Talk of a big contract win according to house broker Arbuthnot.

I reckon the recent cooling off in the mining sector is about over, At any rate , even that should not affect their expansion plans . A long term winner,

Shaft Sinkers Holdings plc (LSE:SHFT), is pleased to issue the following Interim Management Statement covering the period from 1 January 2011 to the current date.

Overview
Following on from its strong 2010 results the Group has continued to trade in line with the Board's expectations.

Revenue has benefited from additional scope at our Lonmin Saffy and Hossy shafts. However, margins have suffered slightly due to some standing time at our Impala 16 and 17 shafts as a result of a rope replacement incident and other technical difficulties which have now been rectified. The rate of sinking of the shaft in Russia at OJSC MHK Eurochem's Volgakaly potash mine has slowed slightly, due to difficult ground conditions. All our other projects remain on track.

The Group continues to experience a high level of tender activity in South Africa, Russia and India.

Safety remains a paramount factor and the Group continues to ensure it is implementing best practice in this area.

Financial position
The Group's financial position remains strong.

Outlook
With trading in line with expectations the Board remains confident of the Group's prospects.

As in 2010 with the commencement of the Styldrift contract, the outcome for 2011 before exceptional items is also likely to be weighted towards the second half reflecting the expected incidence of work on our major contracts.

H1 2011 results will include exceptional charges of GBP 2.0 million in respect of the IPO bonus and GBP 0.5 million in respect of the Group's Long Term Incentive Plan, in contrast with H1 2010 results which benefitted from a GBP 3.8 million contract settlement exceptional gain.

StockMarketWire.com
Shaft Sinkers Holdings will announce its results for the six months to the end of June on 31st August 2011.