Update: Nordic Mining /Approved industrial area plan and discharge permit

Today, it finally happened. The long waited decisions of the industrial area plan and discharge permit for the Engebø rutile project came and the decisions were positive. Yes to both cases.

The Ministry of Local Government and Modernisation and Ministry of Climate and Environment granted the permits. This is a major step towards production of Engebø. Now the political questions is behind and the company can continue to develop mine project as a normal business case. They need to get additional funding going on and get the industrial partner deals done. I continue to be happy shareholder.

In my opinion, below are the main quotations from press release:

"Today, 17 April 2015 KMD has informed that the objection from the Directorate of Fisheries (region west) regarding the industrial area plan has been overruled. The industrial area plan is consequently approved by KMD. "

"Also on 17 April 2015, KLD has granted a discharge permit for mining, mineral processing and tailings deposition for the Engebø rutile project."

"The mineral deposit at Engebø is one of the largest and richest resources of rutile in the world." 

Walde

Company Report: Homemaid AB

I have explored Swedish stock markets lately, especially smaller companies with growth potential, moderate valuation levels and which business is easy to understand. I found a company named Homemaid.

Homemaid AB is Swedish company, listed in Aktie Torget (Ticker HOME B) which offers all types of household services and office services. Company has started 1997. Headquarter is located Halmstad, Sweden and it has about 200 employees. In 2005 company expanded and bought laundry business and in 2013 company acquired Veteran pool which has 36 offices in Sweden. Veteran pool extends the household services range and it offers gardening, craft and care for over 9000 registered veterans.

The good and at the same time risk about the business is Swedish government RUT- tax deduction program. RUT- is tax deduction for household services. Homemaid AB is one of the benefiting companies. At the end of 2013, about 500000 Swedish households bought RUT- services about 14000 companies. Deduction amount is 50000 SEK and it is political decision what changes are made in RUT-program. At the moment current government is  not made any changes.

Valuation 

Homemade is currently very moderately valued at  P / E about 10.

Company's net sales  has growth steadily last years

• 2014 8% 
• 2013 7%

Earnings per share growth

• 2014 0,89 SEK
• 2013 0,79 SEK
• 2012 0,19 SEK 

Equity ratio 44.1%
Gearing -9%

Dividends 

 

Current  dividend is 0,75 SEK per share and yield, based on current stock price 8.8 SEK, is 8,5%. Pay out ratio is high but the business is not capital intensive and the company has low gearing. 2013 dividend was 0,40 SEK per share.


I think company can perform well in the coming years. 8-10% yearly organic growth is probable and they can also make some new acquisitions. At current valuation, It is difficult to see very much of the downside. I think One minus is a small trading volume but that is expected companies like this. I might do purchase in near future.

Walde