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Additional Information

Market:	AIM
Sector:	Building Materials
EPIC:	PMHL
Latest Price:	81.00 (0.00%)
52-week High:	133.00
52-week Low:	79.00
Market Cap:	116.15M

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Prosperity Minerals Holdings Limited Full Prosperity Minerals Holdings Limited profile here

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.

Prosperity Minerals in 1.35m share on-market buy back

Thursday, September 02, 2010

Prosperity Minerals (LON:PMHL) has made another significant transaction as part of its ongoing share buy-back programme.

Yesterday, the company bought 1.35 million shares on-market for 145.5p per share.

Back in July, Prosperity kicked-off its buy-back scheme, with a series of on-market transactions worth just over £1m. On Tuesday July 20th, the company bought 171,000 shares at 150p each, and then on the 21st it bought a further 500,000 shares at 160p.

Following its significant £300m asset sale earlier this year, the company pledged to conduct a share buy-back programme, to return value to shareholders.

In July, Daniel Stewart & Co described the buy-backs as “another encouraging development”.

In April the company sold most of its cement business to TCC International Limited for HK$3.8bn (approximately £300m).

Since the cement asset sale, Prosperity has re-focused its business on iron ore trading assets, and it has also moved into the Chinese real estate development sector.

The greater emphasis on iron ore, was reflected in the company’s latest result which showed an 80% year-on-year increase in the total tonnage shipped to 7.9m tonnes (FY09: 4.4m tonnes).

Prosperity Minerals recently agreed a significant new iron ore master off-take agreement with Grace Wise Pte Ltd, to purchase ore from Malaysia. The three-year off-take deal sees maximum trading volumes capped at 1.5m metric tonnes in FY11, 2.5m metric tonnes in FY12 and 4m metric tonnes in FY13.

With its first steps into the Chinese real estate development sector, Prosperity entered in June into agreements for two separate property investments - in the Fujian Province in south-east China and in Guangzhou City.

According to Prosperity, the PRC’s long term urbanization plan brings increased demand for high-quality housing in China’s cities. Furthermore, the PRC real estate market has recently entered a down-cycle, offering an opportune time to enter the PRC real estate market.

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