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Resurgere Mines & Minerals India Ltd.

BSE: 533017 Sector: Metals & Mining
NSE: RMMIL ISIN Code: INE774I01031
BSE 00:00 | 04 Mar Resurgere Mines & Minerals India Ltd
NSE 05:30 | 01 Jan Resurgere Mines & Minerals India Ltd
OPEN 1.65
PREVIOUS CLOSE 1.68
VOLUME 256794
52-Week high 1.68
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 33
Buy Price 1.68
Buy Qty 4725.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1.65
CLOSE 1.68
VOLUME 256794
52-Week high 1.68
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 33
Buy Price 1.68
Buy Qty 4725.00
Sell Price 0.00
Sell Qty 0.00

Resurgere Mines & Minerals India Ltd. (RMMIL) - Chairman Speech

Company chairman speech

RESURGERE MINES AND MINERALS INDIA LIMITED ANNUAL REPORT 2007-2008 CHAIRMAN'S REPORT Were you satisfied with the performance of the company during the year under review? Absolutely! Consider the numbers: the company reported a 145% growth in its net revenues to Rs 403 cr in 2007-08 and a 103.47% increase in profit after tax to Rs 64.36 cr in 2007-08. The company reported an EBIDTA margin of 27%, which was well above the industry average. What were the reasons behind this superlative performance? The following reasons led to this record performance in 2007-08: Our average realisation per tonne of processed iron ore increased from Rs.1339 per ton in 2006-07 to Rs. 1847 per ton in 2007-08. We marketed 47% more processed iron ore in 2007-08 over the previous year. We also mined 71 % higher volumes of RoM than the previous year. How do you see the industry positioned? The industry is poised to grow faster for some important reasons: rapid industrialization in the Asia and a growing appetite for steel. As a result, we expect global iron ore consumption to grow at over 3%o annually to more than 1.9 billion tonnes by 201 1 . Interestingly, India and China are outperforming the Asian steel industry growth rate and Asia is growing faster than the global average. We are present in the right country and continent and given the optimistic outlook for the metal over the coming years, we see our business being secure for years to come. How do you assess the performance of the Indian steel industry? The Minister of Steel made an important statement in mid June 2008: according to official sources, the annual demand for steel in India is rising by about 13 per cent, but production is growing by over 6 per cent. This will soon change; he indicated that India's steel production is expected to exceed domestic requirement by 2011-12. He indicated specific numbers: 124 million tonnes of steel capacity by 201 1-12, exceeding a requirement of about 1 10 million tonnes at that point. Considering that India produced around 55 million tonnes of steel in 2007-08, the inference is that the country will double nearly 100 years of steel output in this country in only the next four years. This augurs very favourably for the demand of iron ore. There is a growing fear that the export of high grade ore will be restricted, affecting Resurgere. We are well insulated against this possibility for a good reason: at Resurgere, we do not export high grade ore at all. All the high grade ore that we mine is marketed within India. We only export fines, which is a low grade ore, that would otherwise be wasted. How is Resurgere geared to leverage this scenario? We expect to capitalise on this scenario through the acquisition and development of mineral assets. We are focusing on markets beyond China. We have entered into long-term relationships with Indian steel manufacturers for the supply of calibrated lump ore. We are making forwardlooking investments in logistics infrastructure for low cost and timely transportation. We have embarked on the exercise to diversify our presence from iron ore to bauxite and possibly into other minerals and resources, enabling us to emerge as a globally recognised mining company. Subash Sharma Chairman & Managing Director