St V-Ti is guaranteed to be profitable

St Vanadium and Titanium (000629) January 13, two board of directors to consider the adoption of the relevant reorganization of the bill and announced assets reorganization program, the company to the resources listed companies to transform another step forward. Compared to previous plans, the highlight of the restructuring plan is that after the reorganization of the listed company's profits will be protected, the reorganization of the Anshan Iron and Steel Group Commitment, 2011, 2012 and 2013, the saddle of thousands of mining and saddle Australia's core assets Carrara iron ore 50% equity deduction after the non-recurrent profit and loss, The total amount of net profit attributable to the owner of the parent company will be no less than the corresponding total of the projected net profit, such as the total number of actual earnings below the estimated net profit, Angang will pay cash to the listed company for compensation. Anshan Iron and Steel Hong Kong's main asset is the 35.92% stake in the metal company, the gold Metal Company is listed in Australia and holds another 50% stake in Carrara, Angang Hong Kong is expected to get good investment income.　　In addition, Anshan Iron and steel Group has also pledged to inject St vanadium and titanium within 5 years after the completion of the reorganization, in accordance with the listing conditions and related operational compliance requirements. The announcement showed that the proposed iron ore asset profitability is strong, gross margin of 39.44%, far higher than the set of steel assets 11.35% gross profit margin. Earnings forecasts show that in the case of contributions to overseas asset earnings, the net profit for the 2010 and 2011 of the mining and surviving assets attributable to the parent company was 1.376 billion yuan and 1.867 billion yuan respectively, and the 2011 net profit rose to 35.68% from 2010.　　With the development of phase two and Carrara of Baima vanadium-titanium mine in 2011, and the further expansion of domestic and overseas iron ore mining scale and the gradual production of vanadium-titanium project in the future, the company's overall profitability will be further enhanced. And the transaction content has not changed, that is, St vanadium and Titanium will be the existing steel related business assets to the listed companies, relative to the Anshan iron and Steel Group owns the saddle of the mining, Angang Hong Kong and the Saddle O company 100% per cent. The announcement showed that the final value of the assets was estimated at 10.618 billion yuan, and the estimated value of the assets was 11.432 billion yuan. After the reorganization, the company's main business will be from steel to iron ore mining, titanium concentrate purification, vanadium titanium products production and processing, vanadium titanium extension products research and development and application of business transformation, become a resource listed companies.