Elixir Securities Limited – Flash Note
Karachi, January 09, 2015 (PPI-OT): KOHC – Plant to resume operations from next week
As per news flow, a local court had placed a ban on KOHC for mining of minerals for the production of cement. Consequently, KOHC has been unable to run its plant since 5th Dec, 2014 which also reflected in lower dispatches in the month of December, falling by 40% MoM and 38% YoY.
However as per conversation with the company management today, there is no legal impediment on the company for mineral excavation as the ban has already been lifted off. They expect that the plant will anyway start its operation in 2-3 days as the company has developed an alternate mine to resume its cement production.
Elixir Securities Limited expects dispatches for the month of January to remain depressed as the plant has remained shut during first half of January, however from the latter half of January, dispatches are expected to normalize.