For now, citic Pacific was in deep trouble Australia magnetite rent house shanghai mire, and by the end of last year, this project has spent 7.1 billion dollars, citic Pacific accounts for about one-third of total assets.
And this is only Australian iron ore project cost "of the iceberg", and the future is unknown. Although last year performance of commercial real estate projects the bright, but in the property market tight control of the environment, residential projects affected considerably.
This year, the real estate situation is not optimistic, Macao ore occupy a large sum of money, or because of grip citic Pacific the future development of the real estate business. Citic Pacific also has been thinking about and examine the future and citic real estate the feasibility of further integration.
Although citic Pacific denials, the Australian iron ore operations would not impact on the real estate business, but a rough statistics, citic Pacific shenzhou peninsula in hainan project and Shanghai lujiazui financial district new needed for the project money spent, plus additional ore in Australia input, and the funds required to is far closer to hk $30 billion. This is not calculate on Shanghai, yangzhou, suzhou, jiangyin, wuxi lakeshore zone, and other project investment required to fund.
Citic Pacific cash deposit and sell equity financing and the benefits, or difficult to satisfy citic Pacific huge capital demand, these are down or because of citic Pacific's real estate business.
Macao ore still needs an additional 1.6 billion dollars
"Due to the large projects, hard to ensure that the future will not be overspending." Citic Pacific director general manager zhang very well in held on March 1, 2011 annual business conference said.
According to zhang introduces very well, by the end of last year, citic Pacific in Australia has been put into the project magnetite $7.1 billion (about 55.4 billion hk dollar).
Citic Pacific are under construction in the Australian iron ore project, located in remote pilbara region of western Australia Carla sand 100 kilometers southwest of Preston, the cape, by citic Pacific Australia subsidiary citic Pacific mining (CPM) in development. Citic Pacific mining employs 2 billion tons of magnetite rights of mining, mining fixed number of year to achieve 25 years, the annual output of about 24 million tons.
Australian iron ore in the construction of the project is divided into two parts, including mining and power plant, sea water desalination plant and the construction of the port by citic Pacific mining directly responsible for management. China metallurgical science and industry group (hereinafter referred to as the "ZhongYe") is the process of project design, procurement and construction contractor.
"We published last December in the project progress report, said that by citic Pacific mining directly responsible for facilities ready to prepare. At present, the system commissioning ZhongYe responsible for many of the works are delayed." ChangZhenMing in performance conference that, according to the design, the iron ore project will have six production lines.
February 20,, citic Pacific releases announcement to say, last December, citic Pacific has agreed to pay $822 million to increase ZhongYe, and is thus a ZhongYe about Australia magnetite project contract total amount of 3.407 billion dollars. Used for the completion of the new amount will be first and second line construction and commissioning, and all six production lines for public facilities.
Citic Pacific announcement, in January 2007, citic Pacific and ZhongYe project general contracting contract signed with the price of just $1.106 billion a year, then in August 2007, citic Pacific first additional cost, both parties to the first of the supplemental contract will adjust the contract price to $1.75 billion.
In May 2010, and both sides signed a second supplementary contract, for an additional us $835 million, making the contract price to $2.585 billion. Last December, citic Pacific and conclude with ZhongYe third of the supplemental contract, the contract price increases to about $3.407 billion, is at the beginning of the contract price more than three times.
"We for costs rise, feel very discontent!" Citic Pacific ChangZhenMing chairman in the March 1 performance conference says, is the main reason of the increasing cost, ZhongYe think they underestimated the construction and commissioning of Australia in a project of bill and complexity, the main factors including the equipment cost and labor costs $and the appreciation.
Although ZhongYe commitment to 2012 will be held from May 31 to complete the first line, and promised that the first and second line article can separately in August 31, 2012 and December 31 of put into production. But this is only part of the investment of Australian iron ore project cost "bottomless" the tip of the iceberg.
Although, at present the first line of the mineral processing equipment and construction and installation of dehydration workshop is in the final stages, but the second production line of steel structure, mechanical equipment installation, pipelines, electrical engineering only just started the construction, four other production line is still in waiting for state construction.
"The iron mine construction is not an easy easy job, I and managing director Mr. Zhang very well in Australia and project manager of the east China a doctor had many sleepless nights," ChangZhenMing said, because the continuous investment core business, especially in western Australia iron ore project, the company net debt to total capital ratio is 46%, and more ideal value is on the high side.
Citigroup recently also forecast, citic Pacific to complete the project is expected to still need to commit another $1.6 billion (about 12.48 billion hk dollar), make the mine total capital spending will reach $9.3 billion (about hk $72.54 billion), the less the $7.3 billion is expected to soar. On March 5, with the news, citic Pacific is the market for 3 billion-4 billion Hong Kong dollars (386 million-514 million) of the syndicated loan financing, loan term for 3 years or 5 years.
Because of the mine was unknown prospects, several brokers see empty the company said this year prospects. The thought of, followed by 3-six production lines of cost and schedule and operating cost in the future is not clear, will now as the stock rise of iron ore potential, early to talk.
Ubs also say, paying attention to the other production shanghai villa line is the need for additional capital expenditure, unknown or to share price situation under pressure. German bank more so the project productivity prediction down 25% in 2013, earnings per share 9%.
Post je objavljen 15.03.2012. u 13:23 sati.