Prosperity is an iron ore trader serving customers in the People's Republic of China (the 'PRC') and holds investments in entities involved in the manufacture and sale of cement and clinker in the same market.
Prosperity also has a real estate division and has recently entered into a number of conditional agreements designed to build up a portfolio of PRC property and development assets.
30/04/12
Announcement re: Investment in All Wealthy Capital03/04/12
Holdings in Company07/03/12
Proposed investment - additional information10/02/12
Proposed Investment09/01/12
Trading Update
05/09/11
In a stock exchange statement Prosperity said that the operating environment for the iron ore business has changed significantly and it has decided to sell the division. It subsequently plans to return US$60 million to investors and focus its attention on the Chinese real estate business.
29/07/11
We take a closer look at Prosperity Minerals and find there is more to this Chinese invesment than meets the eye.
09/12/10
The cash-rich China focused group is taking part in a joint venture to explore and mine an area in the State of Ceará, Brazil. With its iron trading volumes doubling since 2008, Prosperity is on the look out for new competitively priced iron ore supplies.
07/10/10
We chart a year of change for Prosperity after selling the bulk of its cement assets. With cash and assets worth far more than the current share price, we ask whether the market has got the sums right.
01/06/10
Prosperity sold most of its Chinese cement business in April for £385 million to focus its investment strategy on its iron ore business and seek expansion into new markets in China.
30/04/12
Prosperity Minerals' Malaysian deal now expected to complete in July07/03/12
Prosperity Minerals' Malaysian iron deal pushed back10/02/12
Prosperity Minerals to invest in Malaysian iron ore operation09/01/12
Prosperity Minerals encouraged by first apartment sales at Guangzhou City development02/12/11
Prosperity Minerals is "significantly undervalued", says Daniel Stewart
Prosperity Minerals Holdings Limited (the 'Company' or 'Prosperity') is an iron ore trading business serving the People's Republic of China ('PRC') and a real estate owner and developer in the same market. It is also an investor in two PRC cement manufacturers.
Prosperity was floated on AIM in May 2006 and raised £115 million. The Company was incorporated in Jersey and its main country of operation is the PRC.
Prosperity’s iron ore trading business provides an invaluable service to iron ore suppliers around the world and to end-users, principally large steel manufacturers in the PRC. The Company provides both suppliers and customers with comprehensive value-added services, including financial and logistical solutions, tailor made to their specific and individual needs. Over the past two decades Prosperity has gained extensive experience in the field that allowed the team to develop the contacts and good working relationships that enables it to excel in its field.
On 29 December 2010, Prosperity completed the acquisition of an effective 35% interest in a joint venture company engaged in the exploration and production of iron ore in Brazil.
Prosperity has operated a real estate investment and development division since 1 February 2010, focussed on creating a portfolio of PRC property and development assets with good upside potential and manageable risk. During the year ended 31 March 2011, the Company entered into a number of agreements with its partners to develop recreational, commercial and residential projects in Guangzhou City, Changzhou City and Hangzhou City. The Company also acquired interests in an existing commercial building in Guangzhou City.
On 30 April 2010, Prosperity successfully completed the sale of the majority of its cement manufacturing business in the PRC for HK$ 3.8 billion (approximately US$ 487 million) in cash. Prosperity retained its 33.06% interest in Anhui Chaodong Cement Company in the eastern PRC Province of Anhui. On 1 September 2010, The Company completed the purchase of a 25% interest in Liaoning Changqing Cement Co. Limited, a cement manufacturer located in Liaoning Province, northern PRC.
Iron Ore Business
The Group’s iron ore trading business has sourced, marketed and delivered iron ore to customers in the PRC since 1992. Management has developed strong relationships with the steel manufacturers that purchase most of its products.
In the financial year ended 31 March 2010 the Group’s iron ore trading business supplied 7.9 million tonnes of iron ore to customers in the PRC and generated segment profit of $10.3 million.
Prosperity sources its iron ore supply from the traditional long distance suppliers in Brazil, Australia and South Africa as well as shorter distance suppliers in Thailand, Malaysia and Indonesia. (Read More)
Cement Operations (read more about these projects)
A - Anhui Chaodong Cement Company Limited
In June 2006, Prosperity entered into an agreement to acquire a 40 per cent interest in Anhui Chaodong Cement Co. Limited (“ACC”). ACC is a public company listed and traded on the Shanghai Stock Exchange of the PRC under the listing code: 600318.
The first new clinker production line of 2 million tonnes per annum designed saleable capacity was commissioned on 28 December 2008. Construction of the second new clinker production line of 2 million tonnes per annum was completed in September 2010 and is expected to be commissioned before the end of 2010.
Following the commissioning of the second new clinker line, ACC will have a designed saleable capacity of 5.1 million tonnes of cement and clinker per annum.
B – Liaoning Changqing Cement Co. Limited ("Liaoning Changqing")
On 1 September 2010, Prosperity acquired a 25 per cent interest in Liaoning Changqing which is located near Shenyang, the capital city of Liaoning Province in northern China.
Liaoning Changqing completed 2 million tonnes per annum cement and clinker production facilities. The clinker production line commenced trial production 28 April 2010 and normal production in July 2010. The cement grinding facilities were commissioned in August 2010.
Liaoning Changqing currently has a designed saleable capacity of 2 million tonnes of cement and clinker per annum.
Real Estate Investment and Development
On 1 February 2010, Prosperity established a real estate investment and development division and hired a general manager with the relevant experience and expertise to run the new division. The division was formed to investigate possible real estate investment and development opportunities in the PRC.
On 1 June 2010, Prosperity announced that it had entered into a number of conditional agreements for the acquisition of property interests in the PRC. For more information on these projects, please see Prosperity's website.
(David) Ben Koon Wong - Chairman and Chief Executive Officer
David Wong is the co-founder of the Group and Chairman and Chief Executive Officer of the Company. He is responsible for the strategic planning, business development and general management. David has more than 30 years experience trading building materials and arranging logistics, with more than 19 years of this experience focused on cement and iron ore trading. Prior to 1980, Mr Wong was a sales manager with Reliance Transportation Company, a sole proprietorship, engaged in the trading and transportation of building materials in Hong Kong. David is also the Chairman of Prosperity International Holdings (H.K.) Limited.
Patrick Siu Ming Li - Executive Director and the Chief Financial Officer
Patrick Li, age 48, is an Executive Director and the Chief Financial Officer of the Company. He is responsible for the banking, treasury and accounting matters and supervises the finance and accounting staff. Patrick has more than 20 years experience in the banking and financial services industry and acted as Head of Risk Management in the Global Commodities Group at Fortis Bank (Hong Kong and Shanghai) and as the Vice President for Finance of the Titan Petrochemicals Group before joining the Company. Patrick obtained a Bachelors degree in Social Sciences from the University of Hong Kong in 1985 and a Bachelors degree in Law from Manchester Metropolitan University in 1996. Patrick has also obtained a post-graduate diploma in Corporate Administration in 2000 and a Masters degree in Professional Accounting from the Hong Kong Polytechnic University in 2001. Patrick is an associate of the Hong Kong Institute of Company Secretaries and the Institute of Chartered Secretaries and Administrators.
Johannes Petrus Mulder - Executive Director
JP Mulder is an Executive Director of the Company. He is responsible for overseeing the strategic planning of iron ore trading and its associated activities. JP joined Prosperity from Exxaro Resources (formerly Kumba Resources) where he worked as a General Manager and then Manager of Business Development in South Africa. He also held senior positions in Kumba Resources, which is one of the leading iron ore companies in South Africa, including the Chief Representative of Kumba Resources, Beijing (1997-2002), and a Director and General Manager of Kumba Hong Kong Ltd (2003-2006) and Kumba Hongye Zinc Company.
JP, age 64, holds a Bachelors degree in Mining Engineering from the University of Pretoria, and a Masters degree in Business Economics from the University of South Africa. He has extensive experience in the steel and mining industries. During his nine years in Beijing and Hong Kong, JP spearheaded the China strategy of the company and was also involved in marketing of iron ore in Asia. JP is also an Executive
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Non-Executive Directors
John Campbell Robertson
Anthony John Williams
Sandy Chun-Kwan Chim
Michael Kim Hung Yuen
Yu Lin Zhao
Even Sheng
For more information click here
Nominated Adviser and Broker
Daniel Stewart & Company Plc
Becket House, 36 Old Jewry
London EC2R 8DD
United Kingdom
Public Relations
Citigate Dewe Rogerson
3 London Wall Buildings
London Wall
London EC2M 5SY
Tel: +44 (0)20 76389571
Prosperity Minerals Holdings Limited
ir@materialsgroup.com.hk
Registered Address
Ogier House
The Esplanade
St Helier
Jersey
JE4 9WG
Prosperity Minerals Holdings Limited is currently only trading on AIM although other exchanges and platforms remain subject to review.
Number of shares in issue
Number of shares in issue 147,909,219
Number of shares not in public hands 93,982,625
Number of shares held in treasury 4,517,989
Major shareholders
Prosperity International Holdings (H.K.) Limited 91,865,324 (62.1%)
David Wong, co-founder of the Group and Chairman and Chief Executive Officer of the Company, directly and indirectly through his controlled associates, hold a combined 64.05 per cent interest in Prosperity International Holdings (H.K.) Limited.
Disclaimer
Prosperity Minerals Holdings Limited is not incorporated in the UK and, as such, the rights of the shareholders may be different from the rights of shareholders in a UK incorporated company.
Updated from Prosperity Mineral Holdings website 12.09.11
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