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).

RNS Number : 5903E
Shaft Sinkers Holdings Plc
01 June 2012

1 June 2012

Shaft Sinkers Holdings plc ("Shaft Sinkers" or the "Group")

AGM and Interim Management Statement

Ahead of the Annual General Meeting being held later today, Shaft Sinkers Holdings plc (LSE:SHFT), the international shaft sinking and underground construction group, is pleased to issue the following AGM and Interim Management Statement covering the period from 1 January 2012 to the current date.

Results from trading for the 2012 financial year are forecast to be in line with expectations and the Board remains confident of the Group's prospects. Below is an overview of the performance of the Group's principal projects.

South African Operations
Revenue and margins at the Lonmin Saffy and Hossy projects have benefitted from continuing work on the shafts which are expected to be completed at the end of this half year, while extensions to the scope of work for capital development at these shafts has benefited results.

Revenue at the Lonmin Karee 3 shaft and ore development has been slightly below management's expectations due to lower development rates, resulting in lower margins.

At AngloGold Ashanti's Moab shaft revenues and margins are slightly ahead of expectations.

At the Impala 16 shaft revenues and margins are slightly ahead of expectations and margins have benefited from additional scope of work for capital development. While revenues at the Impala 17 shaft have met expectations, direct operating costs have been higher than we anticipated, resulting in margins below expectations.

Efforts to improve sinking rates at Royal Bafokeng and Anglo Platinum's Styldrift No. 1 shaft have started to show results although revenues and margins in H1 are expected to be behind target.

Revenue and margins at the Hernic Ferrochrome decline shafts are slightly ahead of management's expectations.

At Afplats' Leeuwkop shaft revenues and margins are behind management's expectations for H1 due to the timing of the award of the current phase of work.

The net impact of the different status of contracts in South Africa is that overall, South African operations are trading in line with expectations.


International Operations

Discussions are continuing with EuroChem on the settlement of outstanding amounts.

Following the award of the Hindustan Zinc Limited contract at the Rampura Agucha Mine, we have commenced mobilisation work. Billing and advance payments are expected to take effect during July 2012, slightly ahead of schedule.


Safety
Safety remains of paramount importance and the Group continues to ensure it is implementing best practice in this area. The group has recently achieved 2 million fatality free shifts in South Africa, an important achievement in the South African mining industry.


Financial position
The Group's financial position remains strong and we expect to have a net debt position of £4 million at 30 June 2012, before the receipt of advance payments on our Hindustan Zinc contract. These will only be received in July 2012 following official registration of the project with the Indian authorities.

Appointment of Chief Operating Officer
We are pleased to announce that Louis Germishuys has been appointed as Chief Operating Officer with immediate effect. He brings over 24 years of international mining, sinking and contracting experience including a previous period of employment as Head of Operations at Shaft Sinkers.

Outlook
The Group continues to pursue new projects and is awaiting client adjudication on several tenders and proposals in South Africa, The DRC, Russia, and Kazakhstan.

Results from trading for the 2012 financial year are forecast to be in line with expectations and the Board remains confident of the Group's prospects.

Alon Davidov, CEO, commented: "We are working very hard to secure substantial new contracts to build long term strength in the order book and we are confident that this high quality order book will lead to sustainable revenue streams and on-going returns to shareholders.

"On a separate note, we are delighted to welcome back Louis to Shaft Sinkers as COO. His extensive experience will complement and enhance the existing management team and we look forward to working with him again."


Enquiries
Shaft Sinkers Holdings plc + 44 787 595 1362

Alon Davidov, Chief Executive Officer

Chris Hall, Chief Financial Officer
M:Communications + 44 (0) 20 7920 2330

Ann-marie Wilkinson

Elly Williamson
Notes to editors

Shaft Sinkers Holdings specialises in the sinking of particularly deep and large diameter vertical and decline shafts and the development of underground infrastructure, used primarily in mining and hydropower applications.

The Group is a world leader in vertical shaft sinking with a focus on particularly deep and/or wide vertical shafts. It has the capability to sink shafts through all types of rock strata, including running sands and clay. The Group works principally for established mining and infrastructure companies.

Historically, the Group has completed projects in over 20 countries worldwide across Africa, Europe, South America, the Middle East, Asia and Australia. The group is on record for sinking one of the deepest shafts in South Africa used for conveying men and material to a depth of 3 131 meters below surface.

Major current projects and customers include the Shaft 16 and 17 complexes for Impala Platinum, Leeuwkop for Afplats, the Styldrift project for Anglo Platinum and Royal Bafokeng Resources, the Lonmin projects include Karee 3, Hossy and Saffy, the Hernic Ferrochrome project, the Moab project for AngloGold Ashanti and Rampura Agucha for Hindustan Zinc Limited.

This information is provided by RNS
The company news service from the London Stock Exchange


I hold

DJ INTERVIEW: Shaft Sinkers Focuses On Orders; Mulls Acquisitions, JVs

By Iain Packham

Of DOW JONES NEWSWIRES

LONDON (Dow Jones)--Shaft Sinkers Holdings PLC (SHFT.LN), a mining services provider, is primarily focused on winning new contracts and building its order book, but is also looking to make acquisitions or form joint ventures to ease its way into new markets outside of its core regions of South Africa and Russia, its chief executive said Friday.

"Absolutely the focus this year has been to get the order book nice and comfortable. It's already a lot more comfortable than it was two months ago, it's almost double, and we need another project to give us that three-to-four-year comfort zone," CEO Alon Davidov said.

"In parallel, we're looking at doing some localized acquisitions or joint ventures to try and make our landing in some of the [new] territories a little bit easier," he added.

Davidov said the company has earmarked one or two acquisition opportunities, but will first focus on "bedding down" its new tender opportunities.

The company is awaiting decisions on several tenders and proposals in South Africa, Congo, Russia and Kazakhstan.

Shaft Sinkers has also had interest in its services further afield, Davidov said, citing South America, specifically Peru, and the South Pacific.

"As far as new tenders, zinc, iron ore, gold and copper that's where we're seeing a lot of activity," Davidov said. "We're very positive about a major new contract coming through in the next few months."

In April, the company's order book stood at GBP301 million, with tenders out for GBP1 billion of work, but it was boosted significantly in May by a GBP401 million contract from Hindustan Zinc Ltd. (500188.BY) in India.

"We believe that that [the Indian contract] is going to be a launching pad for us into some other major projects in that region with some significant players, who are already in talks with us, but still a little bit in the early stage," Davidov said.

As well as the new contracts, the type of work being tendered is shifting more toward production replacement from mine start-ups, he said.

"The majority of the projects that we're looking at, at the moment, are mainly replacement infrastructure, in other words, we're seeing companies with open pit mines that are reaching the end of their useful lives and have to go underground in order to maintain production, not to expand production, just to maintain production," Davidov said.

"Sinking a shaft takes four to five years, so you have to take that outlook in order to ensure that you are going to be able to produce in four, five or six years," he said.

At 1220 GMT, shares were up 1.5 pence, or 2.0%, at 75.0 pence.

By Iain Packham, Dow Jones Newswires

I hold

StockMarketWire.com
Work has been suspended by Shaft Sinkers Holdings, the international shaft sinking and underground construction group, at all three of its Impala 17 shafters after a fatal accident at the mine.

It happened last Thursday when Mr Salomão Chunguane died after an accident involving a fall of ground.

He had worked for the company for 20 years.

A full investigation is underway involving, among others, organised labour, the appropriate authorities and management. The findings will be presented to the Department of Mineral Resources.

Shaft Sinkers Holdings plc (LSE:SHFT) today announces that the initial phase of the investigation into the accident announced on June 11 2012 has been completed and operations have resumed at all three Impala 17 shafts.

http:// www.proactiveinvestors.co.uk/register/event_details/156

SHFT presenting at the One2One Investor Forum in London on Thursday 19th July. Starting at 6pm at the Chesterfield Mayfair Hotel, W1J 5EB. Free to attend. Register on Proactive Investors site

Worth a watch!!

http://www.proactiveinvestors.co.uk/companies/stocktube/1246/shaft-sinkers-ceo-is-confident-on-prospective-deal-flow-and-a-significant-uplift-in-cash-1246.html

Thought I would bring this to the fore.

Interesting move in SP with news out by month end.

They tell me the chart looks good also!

Shaft Sinkers Holdings plc (LSE:SHFT), the international shaft sinking and underground construction group, today announces its half year results for the six months ended 30 June 2012.

Key Points
· Revenue of GBP100.4 million (H1 2011 : GBP112.3 million), 10.6% lower than H1 2011.

· Revenue in our key South African market remains strong

· Gross margin reduced to 10.5% (H1 2011 : 17.0%)

· Effective tax rate lower at 26.9% (H1 2011 : 35.0%)

· EPS lower at 1.6p (H1 2011 : 8.5p, 12.0p on an underlying basis)

· Net debt of GBP8.6 million (31 December 2011 : Net cash GBP6.1 million), improved post period-end by GBP16.3 million cash inflows

· Interim dividend declared of 2.4p per share, reflecting confidence in future prospects

· Appointment of Mr. Stephen Oke as Chairman following the departure of Mr. Amre Youness

Operational Summary
· Award of Hindustan Zinc Limited contract, building on Indian presence and increasing project diversity

· Award of additional contracts at Impala

· Order book up to GBP347.9 million (31 December 2011 : GBP301.1 million)

· Strong and diversified tender pipeline of over GBP1.1 billion (31 December 2011 : GBP1.0 billion)

· Appointment of Louis Germishuys as Group COO and MD of South African operations.

Commenting on the results Alon Davidov, CEO of Shaft Sinkers Holdings plc, said:

"The first half of the year has been disappointing, in large part due to operational issues in South Africa, and while we anticipate meeting our revenue expectations for the full year, it is uncertain that we will fully make up the first half profit shortfall. The appointment of our new Group COO and MD South Africa, Louis Germishuys, will enhance our efforts to improve profitability. We have started to see signs of success in our international expansion programme and in diversifying the industries to which we are exposed. We believe that our Hindustan Zinc contract win is a sign of good things to come, and our order book is growing once more. Despite the current challenges, we remain confident of our prospects."

Commenting on the Board changes Mr. Youness said, "It has been an honour being the Chairman of Shaft Sinkers these last years. I believe that I leave the Company and the Board in strong and capable hands."

Mr Oke, the new Chairman of Shaft Sinkers, added, "I am pleased to accept this role and look forward to continuing the good leadership of my predecessor in achieving the strategic goals and ambitions set by the Company, its Board and Management."

When is Ex Divi date?

5th Sept '12 (2.4p)

StockMarketWire.com
Shaft Sinkers the underground construction group, has been selected by Randgold Resources Limited to initiate mobilisation activities for the Kibali gold mine in the Democratic Republic of the Congo (DRC).

Kibali is a joint venture between mine operator, Randgold Resources (45%), AngloGold Ashanti (45%) and Congolese parastatal, Sokimo (10%). The project is situated near Doko, in the north eastern Orientale province.

StockMarketWire.com
AngloGold Ashanti's mines in South Africa are currently not operating due to the unprotected strike which started at the Kopanang operation and has subsequently spread to their remaining five operations, including the Moab project where Shaft Sinkers is contracted to provide services.

As a consequence, Shaft Sinkers' work at the Moab project has been interrupted pending resolution of the unprotected strike.

Shaft Sinkers' work under this contract is substantially complete and the revenues outstanding do not represent a material proportion of the Company's 2012 order book.

However, management is conscious that the general operating environment in South Africa continues to be difficult and will continue to monitor the impact of this on its wider business.

Sorry for any holders, thankfully I don't have any. It's gut-wrenching in the share business when this sort of thing happens;

Statement re EuroChem

Shaft Sinkers Holdings plc (LSE:SHFT), the international shaft sinking and underground construction group, notes the announcement made by EuroChem today that it has filed a claim against Shaft Sinkers (Pty) Ltd in relation to the Company's project with EuroChem, which was terminated with effect from 20 April 2012.

Shaft Sinkers has not yet received notification of the arbitration claims but believes that any such claims are without merit and will contest them robustly. Shaft Sinkers is finalising its claims against EuroChem arising out of the termination of the contract and will pursue these claims against EuroChem.

Further announcements will be made as and when appropriate.

shareholders have been shafted, what a stinker!

Difficult one this, it has all the warnings signs (for me) to stay away . . . see my early posts (#2, #4), after Harrycat...way back.
[[[Harrycat, you still holding from ~70p?]]]
It started at 130p, rose to 180p and beyond, then fell back and has more-or-less continued to fall as the Market realises this isn't a Multi-bagger (but could it have been from such a strong starting price?).
Mining stocks have been in decline, possibly due to World recession affecting "hope" and China's demand for raw minerals . . . . but is now a "buying opportunity" when you can buynearly 5x the number of shares compared with "better" times....yet there is Litigation, which is uncertain and expensive . . . . as Big Boys throw their weight about, it's the poor shareholders that suffer.
Is there a risk they might delist (wash my mouth!)?
Now 37p......so I suspect we might see 20p's before the Litigation is over . . .
Has anyone (here), been to an AGM, I wonder? . . . this is SA based and for me it's "difficult to watch"
EDIT (15Dec2012) - now 43p but then it's only part listed....most shares are held tightly. DYOR.

No. I bought on 20th March '12 at £0.707 and sold on 24th May '12 at £0.7725. I received the divi on 15th June '12, so was reasonably happy with that trade. As you may have gleaned from other posts of mine, I tend to trade stocks on a short term basis, which pay a reasonable divi and a small capital profit. So I traded this and moved on, though I still keep my eye on it. Possibly more luck than judgement that I didn't re-invest.

Shaft Sinkers Holdings plc (LSE:SHFT), the international shaft sinking and underground construction group, advises that on Wednesday 17 October 2012 some of its workers at Lonmin's Saffy shaft embarked on an unprotected work stoppage.

This disruption to operations comes amid unprotected action elsewhere in South Africa's mining sector. Management's priority is to maintain safety, peace and stability and to continue constructive dialogue with employees whilst adhering to the Labour's Relations Act.

Work at the Moab project for AngloGold Ashanti continues to be interrupted due to the illegal and unprotected strike there, as previously announced on 5 October 2012.

Should the broader on-going industrial action in South Africa's mining industry continue, this may adversely affect the margin earned on the Company's South African operations. The Company will provide further updates as and when appropriate.

StockMarketWire.com
Shaft Sinkers Holdings the underground construction group, announces the award of additional work on its existing projects at Impala's 16 and 17 Shafts.

At 17 Shaft the Company will carry out additional underground development work to increase the excavation size of the mining levels including additional support and construction requirements, these works combined with additional costs, add £10.35 million to the order book.

" Sink" is unfortunately the operative word here ! - along with most of the mining sector based in Africa.

Od deary me! Hardly a word here . . and it created so much excitement . . . HARRYCAT - (thanks for yr info, BTW), do you still hold and did you get (are you still gettng) the dividend . . .?
Whilst I don't like so much about this Stock-listing, it might just be worth a punt for the long-term . . . the trouble is they might cut and run, having lost their value from a London-Listing.

Does anyone know the state of that Strike at Moab?