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).

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.

No change, hangon. Just one that I watch, having made a little profit early on, and now thanking Lady Luck, the tea bags and a little bit of rational thought that I don't currently hold! I will not be buying any time soon.

Biggest mover this morning.

Half year results
Shaft Sinkers Holdings plc (LSE:SHFT), the international shaft sinking and underground construction group, today announces its unaudited half year results for the six months ended 30 June 2014 ("the Period").

Operational highlights
· Revenues decreased by 53% principally due to terminating contracts in South Africa, adverse exchange rate movements, safety stoppages following notices from the Department of Mineral Resources, strike action and poor performance at some South African sites

· GBP3.5 million loan agreement with Hillside and proposed GBP9.2 million convertible loan note issue announced after the Period end
· Signing of GBP37 million contract for Kazchrome Donskoi 1,453m shaft project

· Award of additional contract extensions with an estimated total value of GBP10.7 million

· Order book of GBP191.0 million, not including the Kazchrome contract awarded after the Period end (31 December 2013: GBP238.2 million)

· Pipeline of tenders estimated at over GBP801 million (31 December 2013: GBP970 million)

· EuroChem arbitration progressing with key hearings held and GBP5.4 million of legal fees incurred during the Period

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

"Shaft Sinker's business was severely impacted by a number of factors during a challenging first half of the year. A combination of legal fees incurred in relation to the EuroChem arbitration, a 5 month strike impacting our Lonmin and Impala 16 operations as well as underperformance on certain South African contracts severely impacted the Company's revenues and cash position. In order to address its short to medium term funding requirements the Company initiated a process to raise additional funds in June 2014. This culminated in the recently announced GBP3.5 million loan agreement with Hillside. The Hillside transaction has ameliorated the Company's immediate cash problems and provides us with the flexibility to secure a more comprehensive funding package by the end of November 2014."

"The signing, in August 2014, of a contract to sink a vertical shaft for Kazchrome with an approximate value of GBP37 million represents an important milestone for the Company. The contract not only illustrates our continued ability to win business but also helps us to deliver on our strategic objectives of entering the CIS market and, importantly, expanding our international business. In addition, the Company has secured two contract extensions in South Africa, year to date, worth GBP10.7 million illustrating the continued strength of our competitive position in the country. These contract extensions underline our confidence in the Company's long-term prospects."

"Our key objectives for the remainder of the year are twofold. First, we intend to complete the proposed convertible loan issue in order to put the company back on a sound financial footing and secure its long-term future. Second, we are working hard to ensure an improved operational performance in each segment of our business."

http://www.moneyam.com/action/news/showArticle?id=4876163

StockMarketWire.com
Shaft Sinkers Holdings said Hillside International Holdings Ltd has agreed to expand the quantum of funds made immediately available to the company from £3.5m to £5m under the terms of the non-interest bearing loan facility, announced Aug. 22.

In addition, the company has agreed a further £3.0m bank guarantee facility in relation to its contract with TNK Kazchrome JSC. The facility, which requires Shaft Sinkers to hold deposits in the bank, will run for the entire life of the Kazchrome project and is secured against the assets of Shaft Sinkers Kazakhstan LLP.

Preparations to raise up to £9.2m by way of a proposed issue of convertible loan notes were continuing and wouldbe amended to reflect the increase in the Hillside Loan.

"It is intended that part of the proceeds of the Convertible Loan Note offer will be used to repay the Hillside Loan entirely and Hillside will, accordingly, subscribe £5m for Convertible Loan Notes. In all other material respects, the details of the Hillside Loan and Convertible Loan Notes set out in the announcement of 22 August 2014 are unchanged," the company said.

The proposals relating to the Hillside Loan and Convertible Loan Notes are subject to regulatory and shareholder approvals. The Company intends to post a circular to shareholders by 22 October 2014 and thereafter to complete the refinancing package by November 2014.

As announced in April 2014, the Company and Impala Platinum Ltd revised the terms of the Impala 17 contract to more equitably share risks between the two parties following significant losses incurred on the project by Shaft Sinkers.

The revised contract terms covered the period until October 2014 in order to allow Impala time to retender the contract. Shaft Sinkers participated in the retender process but has been notified by Impala that its bid was not successful and the Company's work at Impala 17 will therefore terminate on 15 December.