Malaysians who have struck it big overseas

BESIDES the buzz in the local mining scene, Malaysian investors have also tried their hands to secure some precious metal and mineral deals by venturing overseas. 

Source from (The Star Online): http://www.thestar.com.my/Business/Business-News/2013/07/27/Malaysians-who-have-struck-it-big-overseas.aspx
Published: July 28, 2013

Among the more successful entrepreneurs are Tan Sri Nik Ibrahim Kamil, who controls RM2.5bil SGX-listed gold miner LionGold Corp Ltd, that has since embarked on a trail of aggressive acquisitions of gold mining companies.

LionGold became a hunter recently with takeover targets like Signature Metals Ltd and Castlemain Gold Ltd, both listed on the Australian stock exchange.

Both were deemed undervalued, and LionGold’s aggressive M&A strategy takes advantage of cash-strapped, small and mid-sized listed gold miners, trading at a fraction of their true value, in markets such as ASX.

Nik Ibrahim recently revealed that LionGold “is touching production figures of nearly 6,000 ounces (of gold) per month, and growing.”

“We control directly or indirectly nearly 15 million ounces of Joint Ore Reserves Committe (JORC) compliant gold resources,” he said.

LionGold has also taken a 10% stake in ASX-listed Citigold Corp, that has 11 million ounces of JORC compliant gold resources and its mine in Queensland is touted as Australia’s “highest grade gold field”.

It has also secured control over gold mines in Tasmania and Bolivia and recently started the process to acquire 60% of the Papua New Guinea operations of another ASX-listed gold miner.

Nik Ibrahim is famed for his tenure at the helm of KFC Holdings Bhd for two years from 2006 and also as the former managing director of the NSTP group.

The reason behind LionGold’s success is in the form of SGX-listed Asiasons Capital Group Ltd, which is its single largest shareholder, with a 10% stake, a private equity fund founded by Malaysians Datuk Jared Lim, Datuk Mohammed Azlan Hashim and chartered accountant Ng Teck Wah in 2007.

Asiasons had positioned LionGold in a way to leverage on the market opportunities and accelerate its growth trajectory, back by the fund’s capital.

While on the other end of the spectrum is Negri Sembilan royalty Tunku Naquiddin Tuanku Ja’afar, the chairman of Noble Mineral Resources Ltd, which boasts of 1.98 million ounces of gold deposit in Ghana via Central African Gold Ghana Ltd (CAGG) that owns the Bibiani gold mine.

Noble seems to have run into difficulties as its surface mining operations have been suspended and it has voluntarily suspended its stock from trading on ASX while the revision of its operational strategy is finalised. The company says it is pursuing a revised operational strategy focused on producing higher margin ounces to ensure the long-term sustainability of the project.

Tunku Naquiddin was once the largest stakeholder with a 27% stake via Global Gold Holdings Ltd, but has since diluted his stake to 10.3% with several corporate exercises involving the emergence of Resolute Mining Ltd.

Meanwhile, another low-key mining magnate is Malaysian-born Sam Chong who is now sipping coffee by Brisbane’s West End after toiling hard to become Australia’s wealthiest with a fortune of A$950mil made from coal mining following the rapid rise in coking coal price.

Coking coal used to produce iron out of ore experienced a surge in price with China’s insatiable hunger for steelmaking.

Chong’s ascent to success can be attributed to his stake in privately-held Jellinbah Resource which operates two coal mines and is currently in the process of developing another.

Besides his coal mines, he is also now dabbling in iron ore and property development.