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bne Invest
March 29, 2019 www.intellinews.com I Page 11
Kazakhstan-based vanadium producer starts trading on LSE
Kazakhstan-based vanadium producer Ferro-Alloy Resources Group began trading on the London Stock Exchange on March 28, raising $6.9mn
and issuing 7,507,761 new ordinary shares. That marked a market capitalisation of £219.1mn.
CEO Nick Bridgen said that the company's Balasausqandiq mine has the lowest cash cost in the world due to cheap processing costs thanks to the nature of the deposit. The money raised by Ferro-Alloy Resources will help
push the Balasausqandiq vanadium project’s output to more than 5,600 tonnes of vanadium pentoxide and expand production at a separate
part of the project currently operating at 1,500 tonnes per annum. The company hopes to raise total production to 23,000 tonnes of vanadium pentoxide per year in about about 3-1/2 years.
“This unique project has the potential to be one of the world’s largest and lowest cost producing mines,” Bridgen said.
The project has a net present value of $2bn, assuming a long-term vanadium pentoxide price of $7.50 per pound. The current price stands at $14 per pound.
AFK Sistema's Medsi becomes leader on Russia’s private healthcare market
Medsi, the medica subsidiary of multi-industry investment holding AFK Sistema, with RUB17.7bn ($276mn) revenues jumping by 52% in 2018, became the market leader in private healthcare in Russia, beating the MD Medical Group (Matj i Detya, MDMG), according to a report by Vedomosti daily.
The competition in this private segment is heating up on a declining market, with the birth rate in Russia down by 5% in 2018. MDMG Group posted RUB14.9bn revenues in 2018 under IFRS, seeing revenue growth decline for the third year in a row to 9% (from 28% in 2016 and 13% in 2017).
In 2017 another top three clinic European Medical Center (EMC) posted RUB10.7bn revenues, but has not yet published its results for 2018.
Medsi aims for "unconditional leadership in Russian private medical services marker in terms of market share, geographic coverage, rate of introduction of cutting edge technologies, and maximum profitability for the shareholders," the chair of the company Artyem Sirazutdinov told Vedomosti.
Sirazutdinov expects Medsi's market share to double by 5% in 2021 with revenues exceeding RUB30bn. Currently the company operates 38 clinics, as well as an ambulance service, home care operators and rehab centres, and caters to about 8mn patients annually.