Page 43 - GEORptSep18

9.2.3 Metallurgy & mining corporate news
Georgia’s Interior Ministry on July 16 said four miners were killed and six were injured when a methane explosion caused the roof of a tunnel in a coal mine to collapse. In a statement, it said that the accident occurred early on July 16 at the Mindeli mine in Tkibuli, about 200km west of the capital, Tbilisi. An investigation was launched to discover whether any safety standards had been breached, the ministry added. In April, an accident in the same mine k illed six miners and injured three. The mine is operated by Georgian company Sakhnakhshiri. In its statement on the April incident, Sakhnakhshiri said the cause was a shock effect triggered by a rock burst, a spontaneous rock fracture that is a common occurrence in mines.
The incident came after another miner died in a different mine in the Imereti region on March 26, and amidst a flurry of criticism levelled at mining companies for not abiding by environmental and worker safety standards. Rich Metals Group (RMG), a company registered in the Netherlands that operates a large gold and copper mining operation in Georgia, was in April criticised by the Georgian government for polluting three rivers adjacent to its mine. It gave the company, which has invested $300mn in Georgia and employs 3,000 workers, nine months to stop releasing pollutants into the rivers. After the death of the miner in Imereti region, 50 of his co-workers protested against their employer, the Georgian Manganesi Company, demanding better working conditions.
9.2.4 Healthcare corporate news
Georgia Healthcare Group reported half-year profit of GEL28.4mn (€9.7mn) and earnings per share of GEL0.14, the group said in a statement on August 15. Ebitda reached GEL62.6mn, up 22% compared to the first half of 2017.
CEO Nikoloz Gamkrelidze said the group had “continued the delivery of its key strategic priorities in the first half of 2018”, noting “double-digit revenue growth in both the healthcare services and pharmacy and distribution businesses”. “Building on last year’s significant investment, each business has achieved good levels of franchise growth in the first half of 2018,” Gamkrelidze added according to the statement.
The group has now completed its investment in the development of two hospitals, Regional Hospital and Tbilisi Referral Hospital, which resulted in a number of one-off expenses related to the hospital roll-outs. Now, however, the group is focused on building capacity utilisation in both hospitals, Gamkrelidze.
VTB Capital (VTBC) Research analysts said in an August 15 note that the group’s first half revenues were “solid”, and noted the “revenue growth acceleration to 15% y/y from 11% in 1Q18 on the back of addition of Tbilisi Regional and ramp up of Referral hospitals”.
“Released figures support our 2018F estimates and imply EV/Ebitda of 11.8x with 37% premium to MDMG and 23% discount to EM peers. We reiterate our 12-month Target Price of GBP310 and a HOLD recommendation with 20% ETR. GHG growth stems mostly from greater utilization and efficiency (10% revenue CAGR in 2018-22F) and valuations are stretched to us,” VTBC analysts said.
43 GEORGIA Country Report September 2018 www.intellinews.com