CI Resources Limited (ASX: CII) is an investment company incorporated in Australia. The principal activities of the Company are investment-type activities. The significant investment is held in Phosphate Resources Ltd (PRL) whose principal activity is mining, processing, and sale of phosphate rock and phosphate dust.
The Group is also into the biological assets and hence grows oil palm plants to produce palm oil. The plantation is located in Malaysia. The Group is exposed to risks in respect of agricultural activity. During the year a total of 29,329 metric tonnes of fruit was produced.
The company has via the latest release on ASX disclosed that the in line with the Company’s focus in diversifying its portfolio, Cheekah-Kemayan Plantations Sdn Bhd, a wholly owned subsidiary of the Company has today acquired 12,918,700 shares in United Malacca Berhad (a publicly listed company in Malaysia). This investment will further strengthen the Company’s position in its business in the plantations industry in Malaysia.
The Consolidated results for the FY 2018 was recorded as a profit after tax of circa $21.1M with an after-tax profit from PRL of a $15.8M post the exclusion of its subsidiaries. This came out as a reasonable result, in view of the challenging market conditions. A $5.8 Million recovery from insurers for the final claim concerning the loss incurred due to the interruption caused by a fire in one of our production baghouses was included in the results in the 2016/17 financial year.
As at the end of the FY 2018, the consolidated net cash balances were recorded at $51.24 million, and the net assets came in at $196.67 million. The total liabilities amounted to $47.39 million, being traded and other creditors, provisions and borrowings.
The company successfully maintained a robust financial position and had improved both on its liquidity as well as the and profit reserves. Whilst the Board continues to look out for the profitable ventures, it also had stuck to the policy of returning profits to its shareholders through dividends.
Dividends totalling 10 cents was paid during the year 2018. The Board had recommended the payment of a final dividend of 5 cents per share concerning the year ended 30 June 2018.
The Board of CI Resources is pretty much elated that the Company had a robust financial position. Whilst the market conditions for the company’s mining operations did weaken over the past few years, company’s diversified portfolio along with its strong balance sheet is enabling the company to provide stable returns to its shareholders. In addition, the company is well placed to explore strategic investments in the coming year that will further diversify its business.
Now let us have a glance at the First Cobalt’s stock performance and the return it has posted over the last few months. The stock last traded at a price of $1.40, with a market capitalization of $161.81 million. The stock has yielded a Year Till Date returns of 16.67% and posted returns of -15.15%, -16.67% & 18.64% over the last six months, three months & one-month period respectively. It had a 52-week high price of $1.90, with an average volume of 11,781 approximately.
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