This announcement is dated 10 February 2011.

Type
:
Reply to query
Reply to Bursa Malaysia's Query Letter - Reference ID

:
NE-110209-45021
Subject
:

Further clarification on the tin mining operation in Pengkalan Hulu

Description
:

Further clarification on the tin mining operation in Pengkalan Hulu. The details announcement as per below.

Query Letter
content

:

We refer to the Company's announcement dated 2 February 2011, in respect of the
aforesaid matter.

In this connection, kindly furnish Bursa Malaysia Securities Berhad ("Bursa
Securities") with the following additional information for public release:-

1. Total size concession and exact location of the mining operation in
Pengkalan Hulu;
2. Details of the concession/ licence in respect of the mining operation,
including but not limited to :
a) Nature of the concession/ licence;
b) Duration and exclusivity/ non-exclusivity of the concession/ licence;
c) Salient terms and conditions of the concession/ licence;
d) HWG Tin Mining Sdn Bhd's rights, interest and obligations under the
concession/ licence;
e) The date when the concession/ licence was obtained and the name of the
relevant authority that granted the concession/ licence.
3. Total financing required for the tin ore mining operation and its source of
fund and to quantify the expenditure incurred todate;
4. Total reserves available together with the extraction rates and returns that
is expected to be derived from the tin mining activity;
5. Whether your Company has appointed any expert to undertake the geophysical/
feasibility study on the mining operation at Pengkalan Hulu. If yes, please
state the name of the expert, appointment date as well as the summary of
geophysical/ feasibility report. Please state also the time and place where
such geophysical/ feasibility study report is available for inspection;
6. Details of the development activities including but not limited to, the
expected commencement date of your tin mining operation;
7. The expected production output for the next three (3) years together with
the bases and assumption used in arriving at the annual compounded growth rate
of 20%;
8. The risks in relation to the tin mining operation which could materially
affect your Company and what are the mitigating factors to minimise such risks;
and
9. Outlook of the tin mining industry and to provide a description of your
Company's future plans in light of the industry outlook.
Please furnish Bursa Securities with your reply within one (1) market day from
the date hereof.
Yours faithfully
HENG TECK HENG
Head, Issuers
Listing Division
Regulation

HTH/NAE

copy to:- General Manager & Head, Market Surveillance, Securities Commission
(via fax)

Announcement Details/Table Section :
We refer to our announcement dated 2 February 2011 and would like to furnish the following additional information for further clarification:-

1.      The total size of our tin mining concession is 202 hectares or approximately 500 acres and is located at Lot No. 7439, Sungai Endah, Pengkalan Hulu, Daerah Hulu Perak, Negeri Perak near an existing tin mine currently operated by Rahman Hydraulic Tin Sdn Bhd, a subsidiary of Malaysia Smelting Corporation Berhad (“MSC”);

2.      The details of our tin mining concession/license are as follows:-

·        it is a ten (10) years mining lease (from 7 November 2010 to 6 November 2020) granted exclusively on 7 November 2010 to HWG Tin Mining Sdn Bhd (“HWG Tin Mining") (a subsidiary of Ho Wah Genting Berhad) by Pengarah Tanah dan Galian, Perak Darul Ridzuan; and

·        all the salient terms and conditions stated therein have been complied with, which include submission of environmental impact assessment report and commencement of mine development activities within nine (9) months from the date of grant (HWG Tin Mining is targeting to commence tin mining operation on 17 February 2011);

3.      The total investment required for this tin ore mining operation is approximately RM25 million which would be financed by shareholders’ fund and the capital expenditure incurred as at 31 January 2011 is approximately RM20 million;

4.      The company is targeting to produce 2,000 tons of tin ore a year and with the total estimated tin reserves of approximately 51,000 tons that are available should make a commendable return on investment (“ROI”);

5.      The company had appointed Guilin Research Institute of Geology for Mineral Resources (“GRIG”) in 2008, UKM Pakarunding Sdn Bhd (“UKM Pakarunding”) in 2009 and an Australian consultant geologist in 2010 to undertake the geophysical studies on the mining site. Copies of the respective reports are completed and kept at the registered office of HWGB.

            The estimated tin ore reserves available based on UKM Pakarunding’s report is 51,184 tons;

6.      As of todate, the production facilities have been set up and a team of Chinese expatriate consultants which include geologists and mining engineers have been hired to facilitate the commissioning and commencement of our tin mining operation which is targeted to begin on 17 February 2011. 

Stock piling of alluvial (input to produce tin ore) had already begun in January 2011;

7.      The targeted production output for the next three (3) years is estimated to grow at an annual compound rate of 20% on the key assumption that the company is able to reinvest its profitable returns to expand production capacity and increase efficiency to increase its output;

8.      The major adverse risk factors to our tin mining operation would be the global demand and supply (which in turn could affect tin prices) and unfavorable weather conditions which may hamper our mining activities and therefore our company would maintain a lean and flexible organization structure to reduce fixed overheads to mitigate the effects of such risks; and

9.      The company sees good prospect in the tin mining industry due to recovery in the electrical and electronic (“E&E”) sector, particularly the surging demand from China and Japan which are experiencing robust demand growth in their economies and the near term shortage of tin supplies is also expected to give further support to tin prices. Therefore, the company intends to further develop and upgrade its skills in mining so that it could capitalize on any viable business opportunities either in tin or other similar commodities.          

This announcement is dated 10 February 2011.

Wait for it to hit a high of US 40k first.. Then things will go better as people will start to open their eyes.

By then, lot of Q whether still  ok to buy at rm 1.5 or 2.

Haha,

Those are just the " bare min " reported, I believe they have more to come, like another 500 acres unofficially allocated to them is just one example.

Strangely, many investors want to associate themselves with Apple, though Apple share price is at the sky. They just want people to know he or she knows something about  Apple. No offence plse 

But, How many spend time to locate  or identify the next Apple in town, 9601 likely ?

When tin price hits US 50K, then everyone wants to talk about 9601, liao.

Just wait and see.

BTW, this could be the rare inflation proof stock in Asia 

without ff, 9601 kenot go to moon

You wouldn't know... Without FF, maybe shoot to next galaxy..    
No doubt, HWGB support is very strong at 0.8 level...
Despite previous rise from 0.2 till now.. 0.8 had proven itself for 2 consecutive day

good news is everywhere for this stock,
but still, frm 0.2 to 1.xx is very good oredi,
no matter wat it is still a goreng stock
those buying from .4x can hold,
those .8x,.9x becareful lo....
btw, i am in those .9x category...
lol

good news is everywhere for this stock,
but still, frm 0.2 to 1.xx is very good oredi,
no matter wat it is still a goreng stock
those buying from .4x can hold,
those .8x,.9x becareful lo....
btw, i am in those .9x category...
lol

good news is everywhere for this stock,
but still, frm 0.2 to 1.xx is very good oredi,
no matter wat it is still a goreng stock
those buying from .4x can hold,
those .8x,.9x becareful lo....
btw, i am in those .9x category...
lol