Sunkar Resources continues to climb

Sunkar Resources rose again after announcing its subsidiary, Temir Service, had signed an earth moving contract for a new railway line in Western Kazakhstan.

Sunkar Resources rose again after announcing its subsidiary, Temir Service, had signed an earth moving contract for a new railway line in Western Kazakhstan.

The contract is worth KZT1.2bn - around $8.1m - and the company expects to receive a prepayment of 30% of the total contract value before the end of this year.

The work is scheduled to be completed during the second quarter of 2013 and the company expects the revenue to make a significant contribution to the working capital of the company.

It also hopeful the deal will mean it can retain core qualified personnel for next year's mining season.

"As further work is anticipated on the construction of this new railway line, we hope to increase the volume of work and extend the term of this earth moving contract and we will update the market as to any developments in this respect at the appropriate time," said Chief Executive Officer Serikjan Utegen.

In September's interim report Sunkar said it was pursuing an earth moving contract for its idle equipment to generate additional cashflow from its existing asset base.

The firm said work on the railway project was a natural fit due to the flat and shallow geological structure of the company's phosphate deposits.

Temir used earth moving equipment and mining techniques similar to those used in laying foundation for major railroads and major highways in flat terrain, it said.

Sunkar's shares were up 6.5% by 1200 on Wednesday, and have risen 39% over the last week.

Recommended

A new legal headache for Haleon
Stocks and shares

A new legal headache for Haleon

Haleon, GSK’s former consumer-products arm, spun off last month, has made a dismal debut on the stockmarket.
17 Aug 2022
Persimmon yields 12.3%, but can you trust it to deliver?
Share tips

Persimmon yields 12.3%, but can you trust it to deliver?

With a dividend yield of 12.3%, Persimmon looks like a highly attractive prospect for income investors. But that sort of yield can also indicate compa…
17 Aug 2022
Cineworld faces a bleak future – investors should stay away
Share tips

Cineworld faces a bleak future – investors should stay away

Weighed down by crippling debts and with consumers tightening their belts, Cineworld's future does not look bright, says Rupert Hargreaves. Investors …
17 Aug 2022
Britain’s ten most-hated shares – w/e 12 August
Stocks and shares

Britain’s ten most-hated shares – w/e 12 August

Rupert Hargreaves looks at Britain's ten most-hated shares, and what short-sellers are looking at now.
16 Aug 2022

Most Popular

Don’t listen to the doom-mongers – the future is bright
Economy

Don’t listen to the doom-mongers – the future is bright

With volatile markets, raging inflation and industrial unrest, it may feel like things are bad and likely to get worse. But the end of the world is no…
15 Aug 2022
Investors should get ready for a political revolution
UK Economy

Investors should get ready for a political revolution

Liz Truss will beat Rishi Sunak, cut taxes, and then shake up the Bank of England, says Helen Thomas
15 Aug 2022
How solar panels could lower your energy bill
Energy

How solar panels could lower your energy bill

Solar-panel installation firms are reporting a four-fold increase in orders this year compared with 2021. Ruth Jackson-Kirby explains how solar can he…
14 Aug 2022