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Shaft Sinkers Holdings plc www.shaftsinkers.co.za
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Shaft Sinkers Holdings plc specialises in the sinking of particularly deep and wide vertical and decline shafts and the development of underground infrastructure, used in mining and hydropower applications.  We have the capability to sink shafts through all types of rock strata, including running sands and clay.

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Shaft Sinkers expects to hit full year targets

Shaft Sinkers (LON:SHFT) told investors today that its full year results are expected to be in line with expectations and that it is confident of its future prospects.

Investors welcomed the update, sending shares in Shaft Sinkers up two percent to 75 pence, valuing the group at £35.6 million.

The shaft sinking and underground construction specialist also noted that it is currently awaiting client decisions on several tenders and proposals in South Africa, The Democratic Republic of Congo, Russia, and Kazakhstan.

“We are working very hard to secure substantial new contracts to build long term strength in the order book and we are confident that this high quality order book will lead to sustainable revenue streams and on-going returns to shareholders,” said chief executive of Shaft Sinkers Alon Davidov.

The gorup's South African operations are trading in line with expectations with revenues at AngloGold Ashanti's Moab shaft, the Hernic Ferrochrome decline shafts and the Impala 16 shaft exceeding forecasts.

While revenues at the Impala 17 shaft have met forecasts, margins were below expectations due to higher operating costs.

At Afplats' Leeuwkop shaft revenues are behind expectations for the first half due to the timing of the award of the current phase of work.

Elsewhere, efforts to improve sinking rates at Royal Bafokeng and Anglo Platinum's Styldrift No. 1 shaft have shown results, however, half yearly margins will likely be behind target.

Likewise, margins at the Lonmin Karee 3 shaft and ore development have missed forecasts, resulting in lower than anticipated revenues.

The company also updated investors on the Hindustan Zinc Limited contract at the Rampura Agucha mine, where it has now started mobilisation work. Advance payments are now expected in July this year, slightly ahead of schedule.

Shaft Sinkers expects to have a net debt position of £4 million at the end of June prior to the receipt of the payments on the Hindustan Zinc contract.

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