On 3 June 2015 and 9 June 2015, the Board of Directors of Asdion (“Board”) announced that Venice Sanctuary Sdn Bhd (a wholly-owned subsidiary of Asdion) (“VSSB”) had on 2 June 2015, entered into a sourcing and off-take agreement (“SOT Agreement”) with Hong Kong International Mining Exchange Ltd (“HKIM”) for the supply of bauxite by VSSB to HKIM.
Bauxite? Bauxite, an aluminium ore, is the world's main source of aluminium. It consists mostly of the minerals gibbsite Al(OH)3, boehmite γ-AlO(OH) and diaspore α-AlO(OH), mixed with the two iron oxides goethite and haematite, the clay mineral kaolinite and small amounts of anatase TiO2. In 1821 the French geologist Pierre Berthier discovered bauxite near the village of Les Baux in Provence, southern France.[1] In 1861, French chemist Henri Sainte-Claire Deville named the mineral "bauxite".[2]
Presently, the principal activities of the Asdion Group are that of investment holding, software development and information communication technology (“ICT”) and ICT related services. The Group specialises in providing advanced integrated business and operation solutions with particular focus on broad service sectors from hospitality, supply chain logistics to data services related businesses. The Group had also diversified its business to include property investment and development industry, which have been approved by the shareholders of the Company on 7 March 2014. In addition, Asdion had proposed to diversify the Group’s business to include the business of logistics in its announcement dated 28 April 2015, which is subject to shareholders’ approval in an extraordinary general meeting (“EGM”) to be convened.
Pursuant to the SOT Agreement, VSSB has agreed to sell and HKIM has agreed to buy a total of four (4) million dry metric tonnes of bauxite from Kuantan at a base price of United States Dollar 28 per dry metric tonne (with a pre-agreed variance of 10%, subject to price adjustment based on the terms and conditions of the SOT Agreement) over a period of two (2) years from the date of the SOT Agreement. VSSB shall source for the bauxite from the respective mining suppliers in the vicinity of Kuantan and provide logistics-related services to HKIM for the delivery of the bauxite. Arising from this, the Board expects that the business operations from the sourcing and supply of commodities moving forward may contribute 25% or more of the net profits of the Group and/or may result in a diversion of more than 25% of the NA of the Group. As such, the Company proposes to undertake the Proposed Diversification to Sourcing and Supply of Commodities.
The sourcing and supply of commodities also complements the Group’s logistics business, as the Group will be required to provide logistics solutions to its customers for the delivery of bauxite.
The Board expects that the Proposed Diversification to Sourcing and Supply of Commodities will provide the Group with a new source of income, thus improving the financial performance of the Group in the future.
Global demand for high-grade bauxite continues to rise. The commodity has been trading at record highs since early 2014, when Indonesia imposed an indefinite ban on bauxite exports. The export cut-off, now in its 16th month, has been felt mostly by the world's largest minerals importer, China.
According to the Shanghai Metals Market, China's bauxite imports grew by 4.4 million tonnes in March, an increase of 144.07% since last year's figure. With only 13 operational bauxite mines, the country cannot sustain domestic demand for the raw material. Although there are plans to construct six new bauxite mines across the country, the increase of 3.7 million tonnes of bauxite per year will do little to fill the void left by Indonesia's mineral export ban.
Global bauxite production decreased by 17% from that of 2013 (from 283 million dry metric tonnes in 2013 to 234 million dry metric tonnes in 2014), principally owing to lower production in Indonesia. In response to a Government ban on exporting bauxite and other unprocessed mineral ores that took effect on January 12, 2014, bauxite mines throughout Indonesia shut down and production decreased from 55.7 million tonnes in 2013 to an estimated 500,000 tonnes in 2014.
Bauxite resources are estimated to be 55 to 75 billion tonnes, in Africa (32%), Oceania (23%), South America and the Caribbean (21%), Asia (18%), and elsewhere (6%). Domestic resources of bauxite are inadequate to meet long-term demand of United States, but the United States and most other major aluminium-producing countries have essentially inexhaustible sub-economic resources of aluminium in materials other than bauxite.
If successful, ASDION-WB alone give me 60% over return in 1 month times. BEST performance so far in my record in such short period in time!!! phewwwwwwwwww
I buy only asdion-wb, I sell asdion actually. maybe you don't understand how arbitrage works. your level still kindergarden.
In US, I can even sell first in asdion, then only buy back wb to convert. sadly Malaysia don't allow such things. so ancient time of investing market. all participants only know punts and punts.
Exercise/Strike/Conversion Price MYR 0.5000 Exercise/ Conversion Ratio 1 Warrant : 1 Ordinary Share of RM0.10 each
paperplane2. What does it mean with conversion ratio 1 warrant to 1 ordinary share of RM0.10 each? Other company warrant normally just mention conversion ratio of 1:1. I don't dare to buy this warrant coz i'm not sure if it's not as straight forward as other company warrant. If you have made conversion, can you confirm that it's actually the same as normal 1:1 ratio?
Yes! Buy 1 warrant convert to 1 share. ex-price 0.50! You convert successfully, directly sell the share in mkt, earn 20% profit!
Tricky part is when you sell Asdion after converting at cost around RM1.20, can you still sell above RM1.20? Now selling RM1.46. My guess is---this is a good bet, RM1.40 should be no problem in short term.
With those contracts to HK in hands, RM2 viable near future
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
林俊松
6,929 posts
Posted by 林俊松 > 2015-04-13 10:44 | Report Abuse
Warrant still lagging behind.
Is it a better buy?