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).

No, my post #72 gives you the low down on my investment. One of the few stocks where I saw the bad times on the horizon and exited pdq!!! I got my £179.00 divi on the 6th June.

Outlook
It is expected that profitability for the current year will be significantly higher than 2012, benefitting from a full year contribution from the two new contracts awarded in 2012 (Hindustan Zinc and Kibali Goldmines), an improved operational performance and the contribution from expected new contract awards in 2013. The Group has made significant strides in achieving a return to technical excellence.

Speaking today, Alon Davidov, Chief Executive, said:

"The 2012 financial year presented us with a number of challenges. We encountered a number of operational difficulties, some of which have been resolved and others where actions are beginning to impact and restore operational productivity.

There were also challenges out of our control in terms of exchange rates and labour unrest in South Africa. Management worked hard to mitigate the effects of the strike action however we could not escape the general impact on the entire industry. We are looking ahead into 2013 with cautious optimism that this does not repeat itself.

In spite of these difficulties, we have continued to sign new contracts as we deliver on our strategy to diversify into new end markets alongside geographic expansion."

Full update here: http://www.moneyam.com/action/news/showArticle?id=4537610

Shaft Sinkers Holdings plc (LSE:SHFT) today announces audited results for the year ended 31 December 2012.

Highlights

· Revenue down by 15% to GBP192.5 million (2011: GBP226.5 million)

· Gross profit down by 41% to GBP22.6 million (2011: GBP38.3 million)

· Profit before tax down by 75% to GBP3.4 million (2011: GBP13.5 million)

· EPS down 73% to 4.9p (2011: 18.3p)

· Interim dividend paid of 2.4 pence

· No final dividend recommended

· Net debt of GBP2.1 million (2011: net cash GBP6.1 million)

· Year end committed order book GBP346.5 million (2011: GBP301.1 million)

· Strong tender pipeline GBP1.1 billion (2011: GBP1.1 billion)

· Safety statistics improved

Commenting on the results Alon Davidov, CEO of Shaft Sinkers Holdings plc, said:
"This has been a challenging year due to operational difficulties, which are in the process of being resolved, and a number of external factors including labour disputes, pressures on the platinum price and the depreciation of the Rand that have all impacted materially on the year.

"Against this backdrop the company has delivered on its strategic objectives by expanding internationally and into new markets including gold and zinc. This is not a short term change for the company but, as evidenced by the strength of our order book and pipeline, we believe we are becoming truly global and mineral agnostic which will help us capitalise on the many opportunities that exist.

"Even if there are pressures on mining capital expenditure, mining companies are still reacting to growing global demand and therefore our technological expertise will be in demand as new projects come online and mines get ever deeper, making us all the more confident of delivering value to shareholders in the future."

Hmm doesn't look good, a large variation in expectations between Feb 2013 and (today) April2013 - which almost borders on carelessness, does it? Can it be that all those factors were unknown in Feb - surely it was already in the bag that this would be a poor year?
Currently 37p
Close to floatation these were 150p

Interim Management Statement
Shaft Sinkers Holdings plc (LSE:SHFT), the international shaft sinking and underground construction group, issues the following Interim Management Statement covering the period from 1 January 2013 to the current date.

Overview
Based on current assumptions, results from trading for the 2013 financial year are expected to be in line with market expectations and the Board remains confident in the Group's prospects.This year's results should benefit from the higher margin Hindustan Zinc Limited and Kibali Goldmine contracts.

The Group started 2013 focussed on improving operational performance through implementing a number of restructuring initiatives including removing one layer of operational management. This will be a gradual process and we anticipate that operational performance should improve in the second half of this year.

The South African labour situation remains tense as the current year wage negotiations are due to begin next month.

Below is an update of the performance of the Group's principal projects since the start of the new financial year.

http://www.moneyam.com/action/news/showArticle?id=4596758

StockMarketWire.com
Shaft Sinkers said its South African operations continue to face a difficult operating environment, with some continuing to underperform against management's expectations.

"In addition, the South African business environment remains uncertain and the outcome of current contract negotiations is of sufficient scale to be important to the second half performance," the company said.

"Uncertainties relating to potential labour disruptions in the South African mining industry over the coming months may further impact negatively this outlook," it said.

Management has undertaken a number of initiatives to improve its operational performance and profitability. Cost reduction measures are ongoing and expected to deliver improvements to the group's cost base. As a result of this restructuring, a reduction in overheads of some 15% has already been achieved.

Additionally, management has focussed on renegotiating certain existing contracts to reduce contract risk, in addition to securing further business with an estimated total value in excess of GBP34 million.

The Group is therefore pleased to announce that it has signed a new contract, worth approximately GBP8.5 million, with Impala for additional development work on the now completed Shaft 16 project. In line with management's strategy the contract has been changed from a fixed rate type to a labour reimbursement basis for the development of Level 25 to Level 27.

Additional work at Impala Shaft 17 to the value of GBP17.5 million has also been secured by the group.

The Group has also successfully extended its contract with Afplats at the Leeuwkop project. The six month contract extension, worth approximately GBP5.5 million, is on a rates basis. However management is in discussions with the client about changing the contract to a labour reimbursement type. This extension will increase the depth of the shaft by an additional 250 meters to a depth of 966 meters.

By contrast, Shaft Sinkers' international operations are achieving, on a net basis, good results, generally benefitting from higher margins. However, this positive performance is unlikely to be sufficient to offset the lower than expected performance from South Africa for the year. In India, the Group has terminated a subcontract with one of its suppliers to the Hindustan Zinc Limited contract, taking over its responsibilities directly in order to improve the progress on that project.

Cash and cash equivalents at 30 June are approximately gross cash of GBP6.4 million and debt of approximately GBP6.6 million. The quantum of unpaid variation orders which has again materially increased is placing pressure on cash flow generation in South Africa. Negotiations with the Group's bankers for a renewal of existing facilities are on-going.

The Group continues to defend itself and pursue its claim in the arbitration with EuroChem and at this stage the Group is not in a position to announce any developments on the matter.

Unfortunately overall safety performance at the Group's operations has been disappointing in the first half with a Group wide Lost Time Injury Frequency Rate (LTIFR) of 4.29 against an internal benchmark of 3.5. All efforts are being made to reduce the rate within the benchmark parameters again.

The Group will announce Interim Results for the six months to 30 June 2013 on 30 August, which will include a comprehensive breakdown of the performance of the Group's projects

HARRY hope you have'nt been shafted by this stinker?

No. I had a reasonably profitable punt when they first floated + divi, but not touched them since.

One wonders if they might leave their London Listing, having taken the City/punters for what they could. Their operations in S.Africa seem to have sunk them, yet as I understood it - that was their operation base.

Has anyone been to an AGM . . . I looked a while ago at their Website, but was not impressed.... Still at what's close to 90%-down, surely there's an opportunity for a wee punt?
Harrycat will you re-invest or are you some distance away, I wonder?

Not a chance I'm afraid. Too much risk attached to this stock, imo.

StockMarketWire.com
Shaft Sinkers Holdings confirmed the first blast at the Hindustan Zinc Limited Rampura Agucha zinc mine shaft in the Bhilwara district of Rajasthan, India.

Rampura Agucha is the world's largest zinc mine, operated by Hindustan Zinc, a wholly-owned subsidiary of Vedanta Resources plc.

Hindustan Zinc awarded Shaft Sinkers the contract for the sinking of the main shaft as well as the north and south ventilation shafts at Rampura Agucha in May 2012. This blast marks the start of the main sinking phase for the 950m vertical shaft.

How about a slight change of name for the stock which might more adaquately reflect shareholders' feelings about performance .

I'd like to propose Shaft Stinkers !

I recall this was well over £1 when part-floated, "... see. EDIT (31Dec2010)- started at 135, rose quickly to 150 (now) then flat with few trades... "

somethings I distrust. Then they are very far away and so on...I haven't really heard of them...prior.

These reasons alone make me "Stay away" - unless I saw them at an investment show and they bid successfully for a hole to drop the Somerset floods into ( There's a thought).
Currently 13.5 pence, that's a massive loss from the Floatation price. 90% Club full-member!

Yr suggestion ( Ho! Ho! ).
Good name change, but too late for many Punters who believed the rubbish Notes, etc.
Does It amounts to a party Fraud IMHO, but I can't say that can I...

They need to tell us where they are financially and their LT - plans over the London-Listing. I don't mean an RNS, either!

Of course it is all about the hard times hitting the mining sector. The money is just not there.

StockMarketWire.com
Shaft Sinkers Holdings said Q1 2014 was challenging with operational issues compounding the negative impact of ongoing industrial action in South Africa and the continuing cost of legal fees relating to the Group's arbitration case with EuroChem.

"We experienced significantly lower margins as a result of operational underperformance and higher operating costs. This resulted in the Group recording an unaudited loss before tax of approximately GBP2.7 million for the Period compared to a loss before tax of GBP2.0 million in the same period of 2013."

As a result of the above factors, the Group is facing an increasingly tight cash position, particularly in South Africa, and a number of initiatives are underway to release cash tied up in the business.

These include the sale of assets to clients, the disposal of surplus property, measures to reduce the recovery cycle of receivables and the deferral of non-essential expenditure. In addition, the Group is targeting a further reduction in operational overheads with the aim of improving cash flows.

"At the Group's Kibali project in the Democratic Republic of Congo, sinking proceeded in line with expectations during the Period and we have successfully caught up on some delays experienced previously. The shaft depth has now surpassed the major milestone of 500m and the team has worked for more than 90 days without a single lost-time injury," it said.

"In India, we delivered improved progress at the HZL project during the Period as a result of remedial measures which were implemented at the end of 2013. At the end of March 2014 the main shaft at HZL had reached a depth of 287m and by 16 May it had reached 415m. The headgear at the north ventilation shaft was successfully commissioned and initial sinking commenced in February. The north ventilation shaft had reached a depth of 163m at the end of the Period and 288m by 16 May."

However, results at HZL were still below contractual levels in the Period due to poor sinking progress on the main shaft and the change over from pre sink to main sink at the north ventilation shaft with a consequent impact on margins.

"However, in the latter part of the Period we achieved a consistent improvement in sinking rates at the main shaft and a work acceleration programme has commenced which we anticipate will result in additional revenue."

Industrial action in the South African platinum sector resulted in the suspension of work at Lonmin and Impala 16, preventing Shaft Sinkers from carrying out work on these contracts impacting both revenues and profitability. Impala 16 has declared a force majeure and the Group is in constructive discussions with Impala to resolve this issue amicably. The Group believes it has contractual safeguards in place which should enable it to recover certain costs.

In addition, operational underperformance at Shaft Sinkers' Impala 17 project was exacerbated by safety stoppages following receipt of a Section 54 notice from the Department of Mineral Resources in January 2014.

"Whilst the Group has renegotiated its contract for the Impala 17 project, the expected benefit of the revised terms will only begin to be felt in the second quarter of the year. The revised contract for Impala 17 expires in September 2014, unless renewed. As previously reported Shaft Sinkers is participating in a new tender process for the work at Impala 17."

Performance at our Styldrift project for Anglo Platinum and Royal Bafokeng Resources was below expectations in the first quarter due mainly to poor operational performance on the main and services shafts and subsequent delays in the construction of underground infrastructure associated with the shaft.

The Group achieved good results at the Leeuwkop project for Afplats during the Period. This improved performance was pleasing as the team there successfully resolved a number of issues which arose in the first half of 2013 and delivered a much improved performance.

Disappearing without trace.........

StockMarketWire.com
Shaft Sinkers said since May its cash position has deteriorated further to the extent that it is has engaged with various parties regarding the urgent provision of new financing to satisfy near-term liquidity requirements.

"Negotiations with these parties relate to various financing methods, as well as the disposal of certain assets, and are continuing with the objective of preserving value for shareholders whilst also enabling the Company to continue trading," the company said in a statement.

Since May, Shaft Sinkers has been pursuing a number of initiatives to address cash flow issues including the deferral of non-essential expenditure, the disposal of assets and surplus property and improvements to the recovery cycle of receivables.

50% off in early trade.

StockMarketWire.com
Shaft Sinkers Holdings has been awarded additional work by Afplats (Pty) Limited (Afplats) on its Leeuwkop project.

The scope of work under the new contract includes the continuation of sinking activities on the main shaft from a depth of 984 metres to 1,307 metres as well as the construction of two station breakaways for the establishment of horizontal tunnels to access the ore body at 1,207 meters and 1,237 meters respectively.

The additional work, which commences immediately, is scheduled to be completed in the second half of 2015 and has a total value of GBP7 million. The contract is priced on a rates basis.

Harrycat - any change in yr opinion?

The sp graph is woeful - just look at it fall.... despite today's good news (of sorts), the floatation was hugely overvalued as I think ( check!), they only off-loaded a small % of the stock. SO the City that mopped-up the surplus -(or whoever holds now), is sitting on a huge loss from about £1.60/1.80 . . . . . Oooer.