PETALING JAYA: Jade Marvel Group Bhd (JMGB) has proposed diversifying its existing business to include mining, selling and trading iron ore, dolomite, sand and other minerals to expand its flow of income.
JMGB is primarily involved in four major business segments, namely, Investment Segment, Manufacturing Segment, Real Estate Development Segment, and Money Lending Segment. In the last three years, the turnover of the group’s manufacturing segment, which includes the manufacture and trading of bituminous premix, bitumen, emulsion and quarrying, is down mainly due to the business interruption due to Covid-19.
“The board of directors anticipates that the new business will potentially contribute 25% or more of the group’s net profit and/or result in the diversion of 25% or more of the group’s net assets,” the group said in a filing today. today with Bursa Malaysia.
JMGB intends to fund the new venture from its internally generated funds. It intends to start mining operations after the successful discovery of high mineralization and high-grade iron ore in the rest of Kuala Krai Land, subject to a satisfactory geological report and feasibility study. and, therefore, no additional down payment is required at this stage. In the event of a shortfall in funds generated internally by the group, the latter intends to finance the shortfall using bank loans and/or capital fundraising.
“Furthermore, the group will continue to pursue other opportunities by seeking new viable mining contracts/leases and exploring opportunities for joint ventures or cooperation with business partners to undertake mining and mining-related activities, as well as than by exploring the sale and trading of other minerals.In addition, the group is able to tap into the skills and experience of key management personnel identified to lead the new activities of the group to enhance the prospects of the group,” JMGB said.
The proposed diversification is subject to the approvals obtained from the shareholders during the EGM to be convened; and is expected to be completed by the third quarter of 2022.