The Mirage of Range/Puntland Deal...

[Mintid Farayar]

One of the sad things about the current Puntland leadership (whether in the Puntland administration or in the TFG) is the vicious financial grab they're engaged in. One could even understand from a greed perspective if it was for large financial rewards such as the pilfering that other African dictators make from international conglomerates(in the $100Million/$Billion range) but the continuous selling of national assets for peanuts simply leaves the casual observer wondering.

 

Range Resources, the company that has concluded deals with both Adde Musse and Abdullahi Yusuf is a small, Australian company with no previous track record of mineral excavation and a quickly depreciating financial net worth.

 

Below are some facts from the Australian financial press which show Somalis the pedigree of the current Puntland leadership as well as the veracity of the statements they continue to make regarding better economic times around the corner.

 

SHAREHOLDER RETURNS Trailing One Week: The stock fell three times (60% of the time) and rose twice (40% of the time). The volume was 0.3 times average trading of 2,434,635 shares. The value of $1,000 invested a week ago is $885 [vs $994 for the All Ordinaries Index], for a capital loss of $115. Trailing One Month: The stock fell twelve times (52% of the time), rose eight times (35% of the time) and was unchanged three times (13% of the time). The volume was 0.6 times average trading of 10,712,394 shares. The value of $1,000 invested a month ago is $697 [vs $987 for the All Ordinaries Index], for a capital loss of $303. Trailing One Year: The value of $1,000 invested one year ago is $192 [vs $844 for the All Ordinaries Index], for a capital loss of $808. The total return to shareholders for 1 year is -80.8%. Trailing Five Years: The value of $1,000 invested five years ago is $250, for a capital loss of $750. FINANCIALS Half Yearly Report released on April 14, 2008; year-on-year comparisons with previous corresponding period: In the half year to December 31, 2007 total revenue was up 34.7% to $316,343; net loss of $8 million.

 

 

These numbers are accurate as of yesterday (21 August,2008) So the value of $1000 invested in Range stock shares a week ago is $885. The value of $1000 invested a month ago is $697. The value of $1000 invested a year ago is $192. Obviously, the Australian/British financial markets do not have much faith in Range's dreams of mineral exploitation in Puntland.

Lastly, how could a company that had total revenue of $316,343 (semi-annually) and a net loss of $8 million (semi-annually) really make a difference in Puntland? There are some Somali ports which make more than that in a week (port taxation). Something just doesn't add up.

 

More to be posted in the future....

[Som@li]

Source?

[Mintid Farayar]

Source : Australian Company News Bites - Stock Report

 

Description:

Fundamental data about companies listed on the Australian Stock Exchange. It tracks 20-30 variables including price change, dividend yield, price/earnings ratio, share trading volumes and values, shareholders returns, profits, assets, performance and growth, director dealings, major shareholding changes, activities, key executives and latest announcement headlines. Country of origin: Australia

 

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