Tehran- Managing director of Sadr Tamin Investment Company visited the 15^th International Exhibition of Financial Industries (Exchange, Bank & Insurance) in Tehran on Wednesday, June 7.

Amir-Hossein Naderi, chief executive of Sadr Tamin Investment Company (also known by it’s Persian acronym TASSICO) exchanged views with those working in financial sector, brokers and shareholders of the company at a panel discussion in the stall of the Mobin Sarmayeh Brokerage in the exhibition.

The panel discussion was hosted by Mohammad-Ali Mohammadi, managing director and board member of Mobin Sarmayeh Brokerage, and attended by Mohsen Behzadi TASSICO’s director for portfolio and financing.

Naderi said that Sadr Tamin Investment Company with the ticker symbol TASSICO was one of the largest holding companies in mine and mining industry and one of the best-performing stocks in Tehran Stock Exchange.

Its subsidiaries include Shahid Bahonar Copper Ind. Company, Tabas Parvadeh Coal Company, Iran Salts Mining Company, Alvand Tile Company, Saadi Tile and Ceramic Company, Ceram Ara Industries Company and the newly-established companies of Kudistan Gold Mines Development Company and Sistan-Baluchestan Gold Mines Development Company, he explained.

The holding company and its subsidiaries recorded an annual growth of 111 percent in the capital market, the chief executive said, adding that the company was experiencing success in the current Iranian year (to March 19, 2024) in terms of income and development projects thanks to proper planning.

The gathering continued with questions from shareholders and participants about the performance of the Sadr Tamin Investment Company and shares of Esfahan Steel Company.

QUESTION: Considering your professional record in the companies listed in Tehran Stock Exchange (Mobarakeh Steel Company and Iran Zinc Mines Development) and given that you have always been a supporter of shareholders, what are your future plans for Sadr Tamin Investment Company in this regard, transparency and disclosure of information to shareholders, especially the information of subsidiaries of TASSICO?

CEO: Sadr Tamin Investment Company has a department to establish a reliable tie with its shareholders. We face no problem in this regard. Shareholders and dealers regularly receive updated information. I use the opportunity to inform you of new programs of TASSICO with regard to shares of projects, especially those shares, which are going to be listed to establish a gold holding company. There are two gold mines in Khash (southeastern Sistan and Baluchestan province) and Saqqez (western Kurdistan province). Their development projects have progressed significantly. The progress is 70 percent in Khash. Required permits for trade in Iran Fara Bourse Company are obtained. Exploration operation is complete and the machineries for the processing unit are installed. We are hopeful the unit will start operation by the Iranian month of Shahrivar (August 23-September 22). Saqqez mine will start operation in the Iranian year to March 2025. Exploration and other related activities are complete and the machineries will be run as soon as possible.

QUESTION: When you took over TASSICO, it was heard that new blood would be injected into Esfahan Steel Company to revive and increase its capacity. It has been years that the company is lagging behind its production capacity. What are your new plans to increase capacity of Esfahan Steel Company and cut its extra expenses like superfluous workforce costs?

CEO: Shares of Esfahan Steel Company belong to the Social Security Organization. Its management is handed over to TASSICO. We have outlined a development plan for Esfahan Steel Company. The most important problem facing the company is supply of raw materials, specifically the coke. We have received required permits and funds to set up a coke production unit for the company. That coke production line will start its operation in less than two years. The line will help meet needs of Esfahan Steel Company to coke. As you have already been informed, Esfahan Steel Company purchased about $700m worth of coke and coal last year. The new measure will save money and help tap domestic potential. 

New board of director of Esfahan Steel Company has also been working on a reform in the structure and management of human resources. New products with higher value-added are on the agenda. We are hopeful that the capital will increase soon to help resolve problems, steer the company in the right direction and on the road to success and growth.

Esfahan Steel Company definitely needs to distance itself from the current condition and solve its raw material supply problem. Sufficient supply of coke and coal will help resolve many implications.    

QUESTION: Has the amount of the capital increase for Esfahan Steel Company been determined?

CEO: A reform in the capital structure for a company like Esfahan Steel Company will be carried out based on its needs and the market condition.

QUESTION: Do you think the difference between market value of Esfahan Steel Company and Mobarakeh Steel Company is reasonable?

Esfahan Steel Company has a market value of about $600m and Mobarakeh Steel Company has a market value of about $10bn. I think the market value of Esfahan Steel Company is below its real value. The reason behind it is that steps has not been taken over the past years to solve its raw material supply problem. That is a point, which has been ignored. This is a point that the respected shareholders should pay attention. The other issue is that country’s industries especially steel industry uses electric arc [furnaces], which are vulnerable against gas and electricity shortages. Esfahan Steel Company does not grapple with such a problem while injecting its extra electricity to the domestic electricity network. Gas is only used in a section of direct reduction [of iron] in the company. Therefore, whenever sufficient coke and coal could be supplied domestically, especially through developments being made by Sadr Tamin [Investment Company] in KAZGHAL (Tabas Parvadeh Coal (coke) Company), a bright future can be pictured by the company which will in turn help increase its market value.

QUESTION: Is that true Sadr Tamin Investment Company is going to buy metals share blocks?

CEO: We could be a buyer of share blocks, which are being offered by the government this year. A board member of National Iranian Copper Industries Company is from TASSICO. We have increased our shares since I took over Sadr Tamin Investment Company. We have plans to bolster our role in the National Iranian Copper Industries Company. Shahid Bahonar Copper Ind. Company, the country’s largest copper processing complex, is a subsidiary of TASSICO. We are interested in entering in the copper mining sector. Some other sectors are being handed over by the government. We plan to take control of one or two mining complexes from the government and give their management to Shahid Bahonar Copper Ind. Company.  We also have plan to strengthen our presence in other metal sectors, which the government is willing to hand over, to play a stronger role in this sector.

QUESTION: What will be TASSICO’s program for the dividend payout?

CEO: Generally, Social Security Organization supports distribution of maximum profits to shareholders. It usually decides to distribute at least 60 to 70 percent or maximum 90 to 100 percent of the dividends to shareholders. We hope to have a high dividend payout this year too. We managed to pay dividends of all shareholders within the legal deadline. They received a good profit. We are hopeful to repeat the same experience this year.

QUESTION: Is TASSICO planning to list shares of new companies or projects or mines in the stock exchange this year?

CEO: A gold public joint stock company is planned for a gold mine in Khash. We are in the final stage of taking permission to offer its share in the stock exchange. We are still waiting for an evaluation of the mine. Whenever the evaluation report is prepared, we are to receive the permit within two months. The company will be listed in the stock exchange then.  

Shareholders spoke with the managing director of Sard Tamin Investment Company and offered their views to him at the end of the session.