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Market: AIM
Sector: Real Estate
EPIC: PMHL
Latest Price: 86.50p  (0,00%)
52-week High: 131.00p
52-week Low: 67.00p
Market Cap: 124.03M
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Prosperity Minerals
www.pmhl.co.uk

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.

Full Prosperity Minerals profile here
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Prosperity Minerals Holdings loans $10mln to iron ore joint venture

31st Oct 2011, 10:45 am by Sergei Balashov The upgrades to be undertaken by UGL are expected to increase production volume and quality, bringing enhanced profit and cashflow to Prosperity Minerals

Prosperity Minerals Holdings (LON:PMHL) today loaned a further US$10 million to its part-owned business Globest Participaceos (GPL), taking the amount of total loans to the company to US$22.8 million.

Prosperity holds a 35 percent interest in United Goalink Limited (UGL), a joint venture company involved in the exploration and production of iron ore in Brazil. GPL is an indirect subsidiary of UGL, which holds 602.3 square kilometres of exploration rights and 3.01 square kilometres of mining concessions in Brazil.

UGL will use the funds to set up an iron ore processing plant, upgrade facilities and cover other operational expenses.

These upgrades are expected to increase production volume and quality, bringing enhanced profit and cashflow to Prosperity Minerals.

Of this, US$8.6 million should be repaid until 24 January 2012 and a further US$1.4 million has to be repaid by the end of August 2013.

The balance is to be repaid upon written demand in two tranches of US$2.8 million and US$10 million by August 29 2013 and end October 2013 respectively.

In the period between January and August this year, Prosperity loaned US$12.8 million to GPL at an annual interest rate of 8 percent.

A month ago, Prosperity changes its plans to sell its Chinese iron trading business for US$38.6 million to an associated company Prosperity International Holdings (H.K.) Limited - which owns 64.07 per cent of Prosperity Minerals Plc.

However, a number of independent shareholders, representing a significant shareholding in Prosperity, said they would ‘very much like’ the company to retain the business unit.

Going forward Prosperity will continue to operate as an iron ore trader and real estate developer, in the People’s Republic of China. It also retains its investments in two PRC cement manufacturers.

This morning, shares in Prosperity fell 1 percent to trade at 92 pence, giving the company a market cap of £132 million.

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