According to the Mining News Pro, the conversation with Engineer Behrooz Rahmati is a consultant to the managing director and director of shares and investment affairs and assemblies of the copper company, based on the copper company`s achievements, as well as the sustainable and balanced approach as one of the most important aspects of maintaining the trust of shareholders. Read a stock company.
What Has the national Iranian copper industry achieved the tangible and clear results for shareholders over the last two years under the influence of the improvement and growth of global copper prices?
Undoubtedly, one of the most important factors affecting the stock price of the National Iranian Copper Industry Company in Tehran Stock Exchange is the global copper price, since the basic formula for the domestic sales and export sales of the company based on world copper prices is calculated and determined. In this regard, with an average increase of about 35% in the world price index of copper over the past two years, a significant return on investment of more than 102% has been made to the shareholders of the National Iranian Copper Industry Co., which shows that in two years, compared with the return on the index of the stock market, The past total yield of the total stock index has been around 20% for shareholders, with a profit of about 400% of the company`s stock returns compared to the stock market index in the same period.
On the eve of holding the general assembly, what did the copper companies achieve during the first quarter of this year?
By the end of Spring 2017, FEMLY stocks have created a marginal return of around 30% for the stockholders of the company. This occurred while the Copper Stock Company had a yield of more than two times (equivalent to more than 120%) in the first quarter of 1397, despite the 13% yield on the stock exchange index. In addition, by the end of June 1397, the stock market value of the company reached a significant figure of 205.8 trillion rials, the highest historical value of the company`s market value.
Also, statistics from the Stock Exchanges show that Copper`s rank at the end of 2017 among 50 more active stock companies has been boosted by a striking jump from 30 to 4, and by the end of June this year, by upgrading a rating from the fourth quarter of last year to the rating Thirdly, due to market value, it has been upgraded, which is the highest historical rating of the company since its adoption of the company`s shares as the first company passed by the government to the private sector in line with the policies of the system and supreme leader, under the name of the leading companies of the 44th principle. The company also ranked fourth in the nominal value of shares (capital amount registered), the highest historical rank of the company since its adoption of the stock company in the stock exchange since February 2007.
What has been the profit for Copper for the past fiscal year?
For the past fiscal year, we earned a net profit of about 29 trillion Rials, the highest historical record of dividends, besides, we had about 5 trillion Rials of accumulated profit from previous years, which totaled about 34 trillion billion The equivalent of 565 Rials of Rials will be a reasonable profit per share, which is a very significant achievement for the shareholders of the company.
For the past fiscal year, we earned a net profit of about 29 trillion Rials, the highest historical record of dividends, besides, we had about 5 trillion Rials of accumulated profit from previous years, which totaled about 34 trillion billion The equivalent of 565 Rials of Rials will be a reasonable profit per share, which is a very significant achievement for the shareholders of the company.
What is the copper company`s approach to profit? Does it believe in the maximum division between shareholders or to maximize the allocation of capital?
In this context, based on the experience of the last four consortium of the Copper Corporation, the discussion of capital increase has become a key issue in the strategy of copper industry, especially considering the need to advance development and financing plans for these projects. Undoubtedly, as the country faces constraints on access to global financial markets and the use of various types of finance, the approach to increasing investment capital can be a very good and easy way to maintain, safeguard and increase the company`s shareholders` wealth to advance plans. Develop.
Of course, the dividend approach should be such that shareholders have the incentive and hope to stay at Fomly and can cover their current expenses on a yearly basis, based on the investment they make. Considering that in the current state of the country the ways of financing from foreign countries will be harder, there must be significant increase in capital in the main agenda of the copper company to be maintained by implementing development plans aimed at increasing sustainable production capacity on the one hand and international copper corporate credit and at the same time, on the other hand, we trust the capital market and stock market stakeholders.
Is there a suggestion to raise capital?
The justification report is an increase in the capital so that, after obtaining the approval of the independent auditor and legal inspection of the company, we will be able to obtain a license to raise funds from the securities and stock market with the favorable opinion of the shareholders and the assembly. Considering the importance of carrying out reconstruction and renovation projects of existing production processes in different complexes, as well as the proper restoration of various development projects of the company in line with the company`s sustainable production and development, we suggest increasing copper capital by 40 to 50 percent.That is, at least $ 2,000 and $ 80,000,000 are spent on this profit in the area of development, and we pay part of this profit to well-respected shareholders who can cover their current expenses. Therefore, if a capital increase license is obtained from the stock company, the copper company can use this capital for sustainable development rather than spending current financial expenses.
Will shareholders agree to increase copper capital?
The consent of the copper shareholders, in particular the shareholders, depends on their trust in the company, which, of course, examining the composition of the shareholders over more than a decade clearly shows that Fomly shareholders are among the most loyal shareholders of the company because of the trust they hold. Otherwise, if shareholders are sure of doing their development plans and returning their capital, they will certainly agree.
Is there a trust in the current situation?
In this regard, we should talk about the statistics provided by the stock exchange. According to the figures for the last 12 years from the 2007 copper corporation, copper shares have had a positive return of 1130%, and the average annual return of shareholders who had been a shareholder since the company`s admission to the stock exchange was about 94% It has been a year that the number is achievable. Due to these figures, the reason is that the copper stocks have always been the stockpile of dynamic and powerful stock exchanges, which has always yielded significant positive returns to shareholders for the time being.
Along with this much confidence to Fomly, many market analysts believe that considering the items that the copper company produces an export-oriented and strategic product, it is located on the global copper belt and its precious price over the past twelve years was about $ 6,800 In the past two decades, Ton has not been a consistent development, and the company`s development plans have been changing over and over again to increase concentrate production and cathode, and at best, in one or two years, it has only managed to produce about 230,000 metric tons of cathode. What is the reason for this contradiction?
The issue of development in Iran`s mineral companies is not a long-term issue, and it changes with the change of governments and corporate executives. To solve this, there should be a substantial and long-term perspective on the development of copper. Generally, large mining companies have a coherent and flexible strategy for the development of copper industry, which is that the copper industry should develop development plans at a time when copper prices are rising, and at the expense of cheaper prices, develop more quickly with developmental plans. And besides it, they will add to their mineral resources exploration plans.
A look at the performance of Copper`s development plans shows that, apart from the discussion of global prices, the main difference is in copper company`s plans to increase the production of copper or cathode copper concentrates. Accordingly, in the last decade, the copper prospectus document for the capacity it was supposed to have evolved several times. In these plans, the initial capacity that was considered in the mid-80s was to increase production capacity from 200,000 tons to about 400,000 tons of cathode copper. Then, in the late 80`s and early 90`s, the program changed, and the production level upgraded to 700,000 metric tons of cathode copper was correctly targeted.
Again, in 2014 and 2015, the plans for the development of the company were revised downwards due to the global downturn in copper prices, and the capacity of 700,000 tons of previous cathode copper redefined to 400,000 tons. One of the reasons for these changes in the field of copper industry development is that there are sometimes different perspectives in the country that some believe it is only going to the stage of production of concentrate, and some believe that the end of the production chain (cathode) and even the downstream industry.
In the late 80`s and early 1990`s, Copper Company was determined to once-in-time expand its copper production capacity to 700,000 metric tons of cathode copper, defining a comprehensive program for this. Why did this app change again?
Early in the decade of 2012, due to the rise in global copper prices to its historical maximum, the Copper Capacity Program for the production of 700,000 metric tons of cathode copper was correctly captured by Copper`s copper strategy, and at the same time, With the definition of 32 development plans, the plan to reach 700,000 tons of copper cathode was on the agenda of the copper company, as the average production of cathode copper in the fourth development plan (2005-2001) was about 150,000 tons, which at the end of the fifth development plan 2010-2006), despite the exploitation of four major development plans, only reached about 200 thousand tons, which is a It`s relatively low for the company`s majors, like the copper company. Therefore, in those years, the company was determined to implement a production plan for 700,000 tons of cathode forever.
Therefore, you believe that the implementation of the development plans of the copper company should be implemented as soon as possible, as on the one hand, it may be threatened with such production, profitability and survival of the copper company, and, on the other hand, the confidence of the shareholders in the increase of the company`s capital for four consecutive years. Copper hurt?
That`s exactly the same. When a major shareholder, and especially a stakeholder in the Copper Company, sees a copper development project, such as the construction of the Sungun Melting Plant, whose first contract management plan was signed in 2007, and in 2010 it was at the highest level in the country and during the provincial missions of the government but for about a decade, the plan is being delayed for various reasons, it is likely that the shareholder confidence will be affected by the copper company. We have to admit that we are a volunteer company and the Rial of the money that we spend on the shareholder must be in the process.