Scomi Group Bhd surprised investors when it proposed to revise its current issued share capital reduction from RM224.96mil to RM3mil from the earlier RM40mil.
KUALA LUMPUR: Bahvest Resources Bhd
staged a turnaround for its third quarter to Dec 31, 2018 with a net profit of RM1.09mil from a previous loss of RM2.87mil.
Revenue increased almost five times to RM23.43mil from RM4.03mil previously.
The better results were contributed by both the agriculture and mining segments.
Under the agriculture segment, the Group recorded a revenue and gross profit of RM11.93mil and RM2.19mil respectively, which is a substantial increase of 196.1% and of 103.53% from the previous corresponding period.
Meanwhile, the mining operations recorded a revenue and gross profit of RM11.5mil and RM2.26mil.
Bahvest told Bursa that the sales revenue of RM11.497 million represents approximately 69.34 kgs of net gold sold during the quarter under review while 17.26 kgs of net gold was kept under inventories.
“The Group started extracting gold from top soil clearing in previous quarter ended Sep 30, 2018 and has yet to start drilling and mining of the sulphide and oxide rocks/ore at the identified mining site in current quarter.
This explains the low production currently as the sulphide and oxide rocks are expected to have much higher gold content,” it said.
Meanwhile for the nine month period, the company continues to be in the red although its losses are narrowing. Its net profit shrunk to RM3.07mil from losses of RM49.63mil in the same period of the previous year.
Revenue also increased to RM33.23mil from RM21.46mil.
Looking ahead, Bahvest has commercially commenced gold mining operations in previous quarter ended Sep 30, 2018.
Through the diversification into gold mining business, the group expects this new segment to contribute positively to its future earnings as well as its long-term objective of achieving sustainable growth and value enhancement to the shareholders of group.
The group expects the gold production to increase further once it starts to drill and mine the sulphide and oxide rocks/ore at the identified mining site.
Barring any unforeseen circumstances, the board anticipates that the group may be able to achieve satisfactory operating results for the financial year ending March 31, 2019.
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