Member Info for sultanmerchant

I sometimes wonder whether Peter Tom with his history with Aggregate Industries may try and acquire their Bradstone and Charcon brands. The merger between Holcim and La Farge hasn't worked out as expected and I believe the Bradstone and Charon brands are not a true fit with the LafargeHolcim business model.

21 March 2017 Draganfly Investments Limited ("Draganfly" or the "Company") Update and Notice of EGM Given that the company's investments are now immaterial, and its assets are predominantly in cash, the Company is now regarded as an AIM Rule 15 cash shell and accordingly must announce a reverse takeover or seek readmission as an investing company within 12 months from the date of this announcement pursuant to paragraph 5.6 of the AIM Note for Investing Companies. If no such transaction is announced within that period, the Company's shares will be suspended pursuant to Rule 15. In order to fund the professional fees that will be incurred in such a transaction, the Board wish to have the discretion to issue up to a further 100 million new ordinary shares. The Board have, accordingly, called an Extraordinary General Meeting on 12 April 2017 to give them the requisite authorities. A notice of the Extraordinary General Meeting will be available on the Company's website shortly.

As I've mentioned in previous post, confirmed is Persimmon building its own concrete facing brick plant: http://www.constructionenquirer.com/2016/11/02/persimmon-building-its-own-brick-factory/

The company is way, way, way overvalued at current £1.9 mil given the are still in the very stages of exploration and have been for over 10 years. The fact they have been at this for so long is concerning - there is no urgency and probably only going on a jolly. All they have done is till sampling, geophysical analysis and the like. Its more an academic exercise then a commercial one. Take Lahtojoki which they have identified as a possible diamond mine - they said in August 10th 'phased approach is planned, which will include re-modelling the diamondiferous pipe using the latest understanding of kimberlite processes. This work, together with a re-assessment of the microdiamond data available, will allow the Company to target locations for any further drilling that may be required and for bulk sampling. This next stage is expected to take up to 12 months'. So we're not looking at possible preliminary drilling, bulk sampling for another 10 months if at all. Years to go yet before we're at the business end of things. Take Golden Saint (GSR) a s*** storm of a company it is - at least they've got a washing plant in place, roads built, done bulk sampling ages ago and very soon to recommence washing operations. Mcap is less than KDR. Ok, different kind of diamond mining but I'm sure you can understand what I'm getting at.

I've mentioned this on other boards but concrete facing bricks are taking market share from clay bricks. This trend started during the clay brick shortage 3-4 years ago and developers were desperately looking for alternatives. Concrete facing brick was already used, albeit in smaller numbers. Once developers started using these they stuck with them for low budget developments and haven't looked back since. Look at Persimmon's corporate responsibility page - it clearly says 'Increase our use of sustainable concrete bricks as an alternative to clay bricks'. http://corporate.persimmonhomes.com/corporate-responsibility/persimmon-objectives-2016 Aesthetically concrete facing bricks don't have the same appeal as clay brick but they are cheaper and easier to produce. Persimmon are already building a concrete facing brick plant for backward integration. CEMEX and other concrete producers are exploring the same.

I agree with some of the sentiment here. All very well there being 'potential'. All mining shares can state that. Share holders now require something more tangible to demonstrate they are progressing. They've been at this for quite a while but haven't really progressed.

I think you will find there are more than 3 brick producers in the UK. Granted Ibstock, Forterra and Weinerberger are the big 3 but there are many more independents - Carlton Brick, Michelmersh to name a few. http://www.brick.org.uk/resources/useful-links/brick-manufacturers/ Don't forget there are the concrete facing brick producers. Concrete facing brick is now becoming very popular and many of the main housing developers prefer these to clay brick given they are cheaper and more freely available. PD Edenhall is the biggest concrete facing brick producer with around 6 plants in the UK. The exponential growth in concrete facing brick demand will be at the detriment to clay brick. Persimmon Homes are building a concrete facing brick plant for backward integration of building materials for their homes after suffering on the back of the clay brick shortage 2-3 years back.

there is no brick shortage. Alot of brick plants are on or have been extended shut downs. Ibstock building a new line at their Leicester Rd plant and Persimmon Homes are building a concrete facing brick plant for backward integration of building materials for homes.

Accrington produces the famous 'NORI' brick and Claughton the former Butterley brick range. My understanding is demand for extruded clay brick has been declining of late whilst at the same time developers are sourcing cheaper concrete bricks from the likes of PD Edenhall and Tobermore. Developers weren't happy when during the clay brick shortage prices went up nearly 20%. Persimmon are a big fan of concrete facing bricks but this will be at the detriment to clay brick producers. Retainment of the skill base is real issue with the brick industry as its an ageing workforce and not seen as an attractive career option for the youth of today.

The drop is expected with Brexit vote on the horizon. Many commercial construction projects are on hold until the outcome is decided. Domestic market still buoyant. Its the same with Marshalls, Ibstock and Forterra. What's probably not helping is the latest poll putting the leave vote ahead adding uncertainty to the market. Either way the SP will bounce back after the dust has settled by which time the acquisition of Hope should have gone through and be fully approved by the M & A commission. Once it does go through Breedon will be a powerhouse in the UK construction industry. I personally think it wont stop there. I think Lafarge Holcim may sell off Aggregate Industries Bradstone and Charcon brands to Breedon. It doesn't seem a fit with the Lafarge Holcim business model. Lafarge Holcim are more into the heavy concrete side, not paving, walling and general landscaping products. I think Breedon want to tap more into that side of the market and they do already with the respected Fyfestone brand. Just an opinion of course. As for topping up I would wait a bit - SP will drop further I think.

As I mentioned in my post in November. http://www.theconstructionindex.co.uk/news/view/brick-shortage-officially-over

Are a concern at the moment for UK clay brick producers, especially Dutch imports. Demand for UK produced clay brick has dropped significantly over the past couple of months or so and stock yards are filling up. Hopefully just a blip. However, the good news is Forticrete is still very busy with concrete product production.

28th August - http://www.theconstructionindex.co.uk/news/view/marshalls-has-eye-out-for-acquisitions Marshalls, the paving block and landscaping products supplier, saw its pre-tax profits rise 48% in the first half of 2015 and is hungry for more growth. In the six months to 30th June 2015, Marshalls made £20.8m profit before tax on revenue of £199.1m. In the first half of 2014, by comparison, it made £14.0m on £188.0m revenues. Operating margins increased to from 8.7% last year to 11.1%. In the UK, sales price increases generated £5.6m in additional revenue and exceeded the impact of cost inflation by £1.4m. Volume growth was particularly strong in the public sector and commercial end market where the revenue increase attributable to volume and mix was 11%. Chief executive Martyn Coffey said the company was now looking to make some acquisitions. "The group is well positioned to grow organically and selectively through acquisitions,” he said. “We will continue to focus on growth initiatives during the remainder of 2015 and in 2016.” He added: “The group's priorities are to grow and develop the business and to leverage the benefits from the improving market conditions in order to generate volume growth and so benefit from operational gearing.”

All Marshalls plants extremely busy, especially with walling products where there are around 5 month lead times for products. CEO Martyn Coffey has really turned things around with more emphasis on product quality and innovation, rather than pure volume and this is now reaping the rewards with improving sales and increased production. Marshalls are out performing the competition right now,

http://www.wsj.com/articles/eu-approves-holcim-lafarge-cement-merger-1418664666 Breedon will be at the forefront to snap up plants divested as part of the conditions of the merger.

the divestment of Ibstock, Forticrete and other companies is all prepartion for when CRH start picking up the leftover assets from the Lafarge/Holciem merger next year.

.......from the Lafarge Tarmac sale. Apparently an annoucement regarding the LT sale is due after Xmas. Breedon, CRH and Hope are all keen on acquiring LT sites.

are currently running 24/7 to keep up with demand for their products. Some plants are reporting a 50% increase in production output compared to 2013. As for a takeover - no chance.

When this finally gets approval, Breedon will be snapping up all the sites, which will have to be divested as conditions of the merger. Definitely one to watch 2015. http://www.businessrevieweurope.eu/finance/127/CemexHolcim-Spain-Deal-Cleared-by-EU-as-50-Billion-LafargeHolcim-Merger-Looms

One to watch this week. Rig SPUD a few weeks ago and drilling now in progress. Updates due this week when they reach 1650 metre depth.