December 31, 2021 (MLN): The Board of Directors (BoD) of Mughal Iron & Steel Industries (PSX: MUGHAL) approved the procurement and installation of melting plant and feedstock processing unit with an approximate aggregate project cost of Rs2,900 million for its non-ferrous segment, company’s filing on PSX showed on Friday.
This will enable the Company to commence exports of aluminum ingots and also increase current copper exports. COD is expected within 20 months from the date of establishing a letter of credit, the notification added.
The BoD also approved the capital expenditure for the purchase of spare parts for re-rolling the mill with an approximate cost of Rs400mn.
The above capital expenditure will be financed mainly by way of long-term debt with an expected mix of the debt-to-equity ratio of 80:20.
In addition to the above, the BoD has also approved to retire, dismantle and dispose of, idle fixed assets, comprising of Ferro plant, old bar re-rolling mill (installed capacity 96,000 MT), and coal gasification plant, having an aggregate book value of Rs568mn.
In order to meet the working capital requirements, the BoD also allowed management to issue Sukuk certificates to the tune of Rs5,000mn for a period of 5 years.
