KUALA LUMPUR (Dec 15): SANICHI TECHNOLOGY [] BHD [] has received a letter of intent from China's Guangxi Huayin to purchase 150,000 tonnes of steam coal per month, totaling 1.80 million tonnes for a one-year period.
Sanichi said Guangxi Huayin is one of the largest and most advanced aluminium producers in China. Guangxi Investment Group Co. Ltd hold a 34% stake, Minmetals Aluminium Company Ltd (33%) and Aluminium Corporation of China (33%).
'The LOI enable Sanichi to commence negotiations with its supplier(s) to obtain firm commitments to match the buyer's specifications and requirements,' it said.
It said the earnings would from the trading margin between Sanichi's selling price to the buyer and the company's buying price from its supplier(s).
'The company expects to obtain shareholders approval by first quarter of 2012 and therefore, it is anticipated that the commencement of supply of steam coal to the buyer will be no later than end of quarter two of 2012,' it said.
Sanichi said based on the estimated net profit margin of the coal trading business to be 1%-2% and the volume of the LOI order, it expected a positive impact on its earnings per share and net assets per share for the financial year ending June 30, 2012.
The estimated profit sharing arrangement between Sanichi and FIRC Trade Sdn Bhd was 30% for Sanichi and 70% for FIRC.
Sanichi said Guangxi Huayin is one of the largest and most advanced aluminium producers in China. Guangxi Investment Group Co. Ltd hold a 34% stake, Minmetals Aluminium Company Ltd (33%) and Aluminium Corporation of China (33%).
'The LOI enable Sanichi to commence negotiations with its supplier(s) to obtain firm commitments to match the buyer's specifications and requirements,' it said.
It said the earnings would from the trading margin between Sanichi's selling price to the buyer and the company's buying price from its supplier(s).
'The company expects to obtain shareholders approval by first quarter of 2012 and therefore, it is anticipated that the commencement of supply of steam coal to the buyer will be no later than end of quarter two of 2012,' it said.
Sanichi said based on the estimated net profit margin of the coal trading business to be 1%-2% and the volume of the LOI order, it expected a positive impact on its earnings per share and net assets per share for the financial year ending June 30, 2012.
The estimated profit sharing arrangement between Sanichi and FIRC Trade Sdn Bhd was 30% for Sanichi and 70% for FIRC.
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