| Singapore-listed Anchor Resources is optimistic about clinching deals to supply granite aggregates and granite dimension stones to the East Coast Rail Line (ECRL) project in Malaysia. After Malaysia and China agreed to a lower cost of MYR44 billion for the project, suspended work is expected to resume next month (May 2019) and complete in 2026. Before the project was suspended in July 2018, Anchor Resources had supplied 200 tonnes of quarry aggregates to China Communications Construction (ECRL) Sdn. Bhd., the main contractor undertaking the ECRL project. |
Lim Chiau Woei, MD of Anchor Resources: "I believe we stand a high chance due to our track record in supplying granite aggregates to ECRL."
NextInsight file photoMr Lim Chiau Woei, MD of Anchor Resources, said, “The resumption of the ECRL is a positive development and the Group is poised to be one of the beneficiaries to supply granite aggregates and granite dimension stone to ECRL and other infrastructure projects. I believe we stand a high chance due to our track record in supplying granite aggregates to ECRL."
The 640-km ECRL starts in Kota Baru in Kelantan, winds its way south through Terengganu and Pahang before turning west and reaching Port Klang on the west coast.
In addition, "the revival of the multi-billion-ringgit Bandar Malaysia and the emphasis on local content and materials will boost demand for construction raw materials, presenting great business opportunities to players like us,” said Mr Lim.
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Stock price |
1.7 c |
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52-week range |
1.6 - 4.0 c |
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PE (ttm) |
-- |
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Market cap |
S$18.5 m |
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Shares outstanding |
1.09 b |
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Dividend |
-- |
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1-yr return |
-26% |
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Source: Bloomberg |
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Anchor Resources has renewed the Memorandum of Understanding with Mr Mohd Sukri Bin Ismail, which was originally signed on 9 April 2018, to combine their respective resources in tendering for the ECRL and other infrastructure projects in Malaysia.
Mr Mohd Sukri is a quarry licence holder for two quarry leases with a total area of approximately 146,590 sq m in Hulu Terengganu.
Anchor Resources’ wholly-owned subsidiary, GGTM Sdn Bhd, has a government concession for the extraction of granite aggregates and dimension blocks from the 258-acre Bukit Chetai quarry and the 484-acre Bukit Machang quarry.
• For more info, see press release.
• Read about our visit to the granite quarries: ANCHOR RESOURCES: Starting to extract value from immense granite resource
