Shares of Ashapura Minechem rose 10 percent in early trade and hit a 52-week high of Rs 571.6 after the company announced that its overseas subsidiary had signed a long-term Memorandum of Understanding (MoU) with China Railway, a Global Fortune 500 Company, to jointly develop the Fako bauxite deposit in the Kindia region of Guinea.
At 11.45 AM, shares of Ashapura Minechem were trading 4 percent higher at Rs 538, marking a 33 percent year-to-date gain compared to the 2 percent drop in the Nifty 50 during the same period. This also marked the fifth consecutive day of gains for the stock.
Under the MoU, China Railway will handle bauxite production and provide logistical solutions, while Ashapura will oversee sales, marketing, and technical support, including quality assurance.
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"The above mentioned project may set to transform one of Guinea's most underdeveloped regions by creating job opportunities. It will also boost company's production capacity while driving economic growth and improving lives of local communities in the Fako region," Ashapura Minechem said in an exchange filing on January 20.
For the quarter ended October, Ashapura Minechem reported a consolidated net profit of Rs 44.3 crore, down from Rs 59.3 crore in the year-ago period. Revenue from operations rose to Rs 604 crore, compared to Rs 554 crore a year earlier.
Incorporated on February 19, 1982, Ashapura Minechem is engaged in mining, manufacturing, and trading a variety of minerals and derivative products. The company provides multi-mineral solutions to industries ranging from soaps to steel, energy to edible oils, metals to medicine, and cement to ceramics, with a presence across India and seven other countries.
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