A WEE DRAM
CHRIS GILMOUR: New-look AECI still offers investors bang for their buck
Does anyone remember the AECI of the old days? It was predominantly an explosives and fertiliser company and its nickname on the JSE trading floor was "Bang Bangs" in reference to its involvement in mining industry blasting. Principal shareholder was the now-defunct Imperial Chemical Industries (ICI). In recent times it has undergone a profound metamorphosis and today enjoys a wide institutional shareholding. The first signs of a change in direction for the group came some years ago, with the large-scale sale of surplus land at Modderfontein and Somerset West. With advancements in explosives technology, it was no longer necessary to have vast swathes of unproductive land near its production facilities to cater for unforeseen explosions. Additionally, the background environment for most of AECI’s businesses has been on the up and up, especially in mining solutions. The improvement in gold and copper prices has helped its explosives volumes in SA and the rest of Africa, as have increa...
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