Advance SCT: penny/ concept stock with exposure to metal commodities.
i) Secures a sole and exclusive contract to supply at least 1000 mt/mth of 1st grade copper scraps to Qingyuan Shengli Copper Mat’l Co, which could contribute >$150m to 2011 revenue based on today’s prices. This compares with only $17.3m revenue booked in 1H10. SCT will explore other areas of cooperation with Shengli, to ride on the latter’s infrastructure in Qingyuan, Guangdong province and reputation…
ii) To restart its aluminium smelting plant in Msia this month, and will produce 200-400 tons of aluminium ingots/mth in 2011.
iii) Song Tang Yih becomes new significant sh/h, after raising stake to 5.55% from 3.29% in a married deal.
SCT is a global recycling and wastes mgt expert, and is one of the largest traders of aluminum, copper and stainless steel scraps in Spore…
Counter may see trading interest in light of recent positive news flow, but note key risk is in the huge value of claims against the company due to legacy issues. SCT has -$61m in net assets vs $22m mkt cap. The co is in the midst of an on-going debt restructuring.
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