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Mumias Full Year 2012/13 colossal loss of 2.2B
mwekez@ji
#21 Posted : Thursday, September 12, 2013 8:45:05 AM
Rank: Chief


Joined: 5/31/2011
Posts: 5,121
mwekez@ji wrote:
hisah wrote:
mwekez@ji wrote:
Rich Today wrote:
Mumias Sugar rallied 2.74% to close at 3.75 and traded 334,000 shares. Mumias Sugar of course reported a FY 2013 Loss after Tax of 1.6697b. The Core Sugar Franchise was soft with Mumias producing 14.65% less Sugar tonnage than the Previous Year. However, The previously peripheral plays have begun to pop over the radar with Mumias reporting that Co-generation generated revenue of 305m and that the Company sold 4m litres of Ethanol and earned 331m versus 1.5m in 2012. I incline to the view that Mumias is entirely unlikely to trade below 3.50 and it will be higher by some distance by year End.


I totally disagree esp after that huge volume spike showed up and crashed the price to GFC lows. It'll bounce, but downside pressure will see it breakdown sub 3. Capitulation extremes have not yet popped up to force in solid support.


@hisah, think of it, @njunge seems to indicate the floor is 3.50 and he also indicates FY13/14 the company may not shut its plant. ... Greatest risk i see is if the COMESA safeguards are not extended to beyond March 2014


hisah
#22 Posted : Thursday, September 12, 2013 7:01:21 PM
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Joined: 8/4/2010
Posts: 8,977
@mweke - until the chart tells a diff story esp volume-wise, I won't bother with this counter.
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
mwekez@ji
#23 Posted : Thursday, September 12, 2013 8:14:57 PM
Rank: Chief


Joined: 5/31/2011
Posts: 5,121
K
mwekez@ji
#24 Posted : Thursday, September 26, 2013 8:59:02 PM
Rank: Chief


Joined: 5/31/2011
Posts: 5,121
The beginning of the end of COMESA safeguards¿

The beginning of the end of the country's sugar industry¿

Sugar millers move closer to privatisation

http://www.businessdailyafrica....1/-/fbk7uhz/-/index.html
mwekez@ji
#25 Posted : Thursday, September 26, 2013 9:00:59 PM
Rank: Chief


Joined: 5/31/2011
Posts: 5,121
^^^ It is feared that an influx of cheaper sugar from Comesa and the international market will greatly erode market shares of existing local millers and kill them.

“The average cost of production in Kenya still remains one of the highest in the world,” said Rosemary M’kok, the CEO of the Kenya Sugar Board.

“Factors such as declining cane yields, harvesting of immature cane, high cost of inputs and services has been the major drivers of high cost of production.”

She said on average, Kenya’s cost of sugar production stands at Sh82,650 per tonne compared to other regional markets like Malawi where the costs is as low as Sh30,450 per tonne.
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