Asia One reported that local golfing equipment firm Transview Holdings is teeing off into a new sector, the booming resources field.
Responding to the red hot commodities market, Transview has placed its chips on an Australian miner.
Mr Tan Ching Khoon chairman of Transview said that “We’ve identified the resource sector to be a growth engine, because of demand from China, India and the rest of the world.”
Mr Tan, who will join Trafford’s board soon, is bullish about the investment. He said that “Dividends from the investment in Trafford could surpass profits from the golf equipment retail business. Transview posted USD 1.42 million in net profit last year. His upbeat outlook on commodities is well founded. The Standard & Poors GSCI, a benchmark of commodity performance, posted a near 14% gain last year. The rally was led by industrial metals, which saw an 82% gain on the S&P GSCI industrial metals index.
Recently, Gerard Lyons chief economist of Standard Chartered dubbed China a superman economy. It goes up, up and away with a fundamental flaw kryptonite. China’s kryptonite is resources. That’s why it’s trying to buy up resources everywhere it can.
Trafford’s primary focus is in iron ore, copper, gold and uranium deposits. It has an 18.4% interest in Robust, a gold mining company, and 50% interest in Ironclad Mining, an iron ore miner. Both are also listed on the Australian stock exchange.
Although Trafford posted a loss of AUD 1.59 million for the financial year ended June last year, Mr Tan is not overly concerned about this. He said that all mining companies make losses until they begin production. Demand for iron ore in China is overwhelming. Ironclad has already attracted a lot of interest from Chinese parties.
Mr Chris Lim CEO of the mining operations of Malaysian gold miner CNMC Goldmine which has plans to go public said that the growth of commodities is assured it’s a scarce resource.
However, not all attempts have succeeded. Last October, electronics components manufacturer Lion Asiapac, via a JV attempted AUD 78.6 million takeover bid for Australian listed miner Polaris Metals. The deal fell through.
(Sourced from Asiaone.com)
