Sandur Manganese is a mining company, which is involved in the mining of manganese ore and iron ore. Mining companies of late, especially from Karnataka, Till 2008, this company was mining about 700 hectares where the results were about 5 million tonne of iron ore and 18 million tonne of manganese ore. Thereafter, the company got clearance to develop further and as on today the total area being mined is about 2,000 hectares up from 700 hectares. The total reserves of iron ore are 50 million tonne and manganese ore is 25 million tonne.
| Sandur Manganese & Iron Ores Ltd |
The promoters are holding close to 75% in the company, which is a big positive as far as I am concerned. The company has got a 74% subsidiary called Star Metallics. This Star Metallics is into ferro alloys. The company has invested close to Rs 110 crore in Star Metallics and the investment has still not started yielding returns because Star Metallics plant is not operational.”
“The company’s captive power plant of 32 megawatt is going operational in September of 2010, which will make Star Metallics’ ferro alloy plant operational. Which means that the investment of Rs 110 crore with the company made in Star Metallics will also start yielding returns from next month onwards. You have a mining company, which is available at extremely reasonable valuations. There are short-term concerns regarding mining restrictions being imposed by the Karnataka government and also regarding restrictions on movement of iron ore.”
IT HAS A EQUITY OF 8.75 CR AND COMPANY POSTED 91.68 CR PROFIT FOR FULL YEAR 2011 . CURRENT MARKET CAP IS 481 CR AND DEBIT FREE COMPANY AND HAS 169 CR CASH ON BOOKS . CURRENTLY COMPANY TRADING AT 5.7 P.E JUST BUY FOR A LONG TERM INVESTMENT
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