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).

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.

FWIW the Market's fear of World Economic collapse is affecting even this mammoth,
down below Float (DYOR), and I presume even the prospect of a divi - is all in the price.
Can somone confirm this is Full List and ISA-able?
(I don't hold for reasons stated on p1).Mid=132p
Reading Harrycat's post=35, . . . reads OK.

+Other LT views, I wonder?

Shaft Sinkers Holdings plc

Re Teesta Urja Operation
Shaft Sinkers Holdings plc ("the Company") (LSE:SHFT), the international shaft sinking and underground construction group, announces that work on its project for Teesta Urja in India was suspended on 20 September 2011 following the earthquake in the Sikkim province on 18 September 2011.

The project is located close to the earthquake's epicentre in an area that has suffered damage. There were no injuries to the Company's employees and there is no immediately apparent physical damage to the project or to equipment. The company has taken the precaution of evacuating all employees, as logistical access to the site is affected.

The financial impact of suspension of operations is unlikely to be material. The company is investigating the safety parameters that would allow operations to resume and the project to be completed and will update the market in due course.

Given up on this, One and All?
77p down from float at 150p and a following rise - arghh!

What I don't understand is why an experinced Co digs a hole in a known earthquake zone...... foolish or was that the onl;y deal in Town?

Bargepoles methinks, one of the most difficult things in business is to know when not to take on a job.

A lot of the mining sector is being clobbered at the moment, worse than most methinks

StockMarketWire.com
Shaft Sinkers Holdings, the international shaft sinking and underground construction group, has confirmed that due to the continued slow progress resulting from extremely difficult ground conditions, it has entered into discussions with its client EuroChem with a view to amend or terminate the contract.

Sinking works have now been suspended and the parties are in negotiation on the way forward. A further update will be made in due course.

Right name

Oh dear.

This company does not need a problem like this. More jobs at risk.

Is this not only one contract of many, not armageddon.. A 30% drop seems a bit over the top.Especially in view of already steep falls.

After falling about 150 points from its highs,to 40, it looks like some sort of recovery is on the cards.
At any rate up 7 in the last few days

StockMarketWire.com
Shaft Sinkers Holdings anticipates that results before exceptional items for the year ended 31 December 2011 will be ahead of market expectations.

Unaudited group revenue has grown by some 20% from £183 million in 2010 to approximately £220 million in 2011 despite a slightly weaker exchange rate. However, in constant currency terms, revenue has grown by approximately 23%.

Exceptional items are expected to comprise a charge of £3.8 million for the IPO bonus as disclosed in the Prospectus, the second half of which was paid in early 2012.

The Group ended 2011 with net cash of approximately £6.0 million after deduction of interest bearing debt of around £16.4 million.

19 March..
Westhouse Securities.. 'Strong Buy'.. target 170p

Reiterates

I hold

170p would be very nice! I also hold from 71p.