Infrasors bids AltX farewell

Feb 01 2010 14:53
Nicole Rego

Johannesburg - Mining firm Infrasors listed on the general mining sector of the JSE's main board on Monday, moving from the AltX.

Infrasors produces a range of products for use in the manufacturing, industrial and construction sectors such as mining silica, aggregates for the construction industry and metallurgical products. It owns mines such as Lyttelton Dolomite, Delf Sand - a silica mine - and a brick-producing firm called Infrabric.

"It's always been our goal to get to the main board. When we listed on the AltX, we tried to get onto the main board but we didn't have the criteria, and it's taken us two years to do it," said CEO Trevor Robinson.

"The important driver for the move was to take a step of growth, which will allow us to be judged and compared to our peers. We're also looking at removing the risk tag associated with the AltX, and having a stronger institutional shareholder base."

Good prospects

On Monday, the group commenced trade at 89 cents per share.

For the year to end-February 2009, it recorded a 1.92% rise in turnover to R239.7m, while operating profit fell 67% to R38.7m and earnings per share were 77% lower at 17c.

Intellidex analyst Stuart Theobald said Infrasors has an attractive value proposition. Even though the group's turnover is expected to be 21.6% lower in the 2010 financial year, Theobald forecasts substantial rises in 2011.