Aside from probably a raise for him, this may not mean that much to the company overall.
HOFFMAN ESTATES, IL--(Marketwired - Nov 18, 2013) - The Board of Directors of AMCOL International Corporation (NYSE: ACO) has appointed Gary L. Castagna to the position of Executive Vice President and Chief Operating Officer of AMCOL effective January 1, 2014. Mr. Castagna has been with the Company for more than 23 years. He has served as Senior Vice President of the Company and President of our Performance Materials segment since May 2008. Prior thereto, Mr. Castagna served as Senior Vice President and Chief Financial Officer and Treasurer of the Company. Mr. McKendrick, President and CEO, commented, "Gary has demonstrated strong leadership skills and has delivered excellent results in his current role. In his new role, he will continue to lead the Performance Materials segment and will bring his strong team building skills, along with operational and marketing expertise, to the other AMCOL segments."
HOFFMAN ESTATES, IL--(Marketwired - Nov 6, 2013) - AMCOL International Corporation (NYSE: ACO) announced today that it is furnishing more than 1.5 million square meters (16 million+ square feet) of its Resistex®geosynthetic clay liner (GCL) product to a new aluminum processing facility in Saudi Arabia. The $25.3 million contract includes supply of the GCL and all other components of the multi-layer lining system.
The lining materials will be used in the construction of an on-site disposal facility at a new alumina refinery being constructed by Ma'aden Bauxite and Alumina Company, a joint venture between ALCOA Inc. and Saudi Ma'aden Mining Company. The contract is with Hyundai Engineering and Construction Co., based in Seoul, Korea.
Marla, I think the dividend is still very safe at these levels. Aside from the "special" loss this quarter, they should still earn near $2.00 per share this year and are only paying out $0.80 in dividends. Fairly conservative payout ratio and it would be a big embarrassment for management to have to cut the dividend. I am just disappointed with the execution on the chromite business and how long it has taken to figure out that it is a loser. Most of their other businesses seem to be OK. I will give them a little more time to straighten this out, but I don't expect the share price to do much in the near term. I'm not an expert, but that's my take. Good luck.
Steve, I am the lady who inherited her AMCOL stocks and is not saavy in any way ,shape, or form regarding this stock. I just know that over the years the dividend has supplemented my income and I have always been happy with that. Can you tell me in your opinion and expertise if you believe the dividend will remain at least at the level it has been the past year or so? Or do you forsee a drop? Thank you for any insight you can give me.
Here is an excerpt from a Sep. 2011 report on "tight supplies" in chromite and the new SA Amcol facility:
The tight market conditions for non-met. grades have heightened the interest in the emergence of new sources of supply specifically for non-met. chromite grades, but it has not been plain sailing for the newcomers.
In South Africa, US foundry minerals supplier Amcol International Corp. has brought on stream a new $50m. chromite processing facility at its Ruighoek Chrome project in South Africa to supply its new Hevi-sand foundry chromite brand targeting customers in Asia, Europe, and South America.
Amcol’s development has been in response to the growing shortage of foundry grade chromite, and a perceived lack of “meaningful commitment” from South African suppliers, which was threatening long term customer relationships.
Amcol’s strategy was not to compete with the metallurgical grade market, but to focus on a new high yield foundry sand source. Through careful processing of chromite ore from the LG6 ore body, Amcol’s aim is to deliver a grade of high chrome content (47.5% Cr2O3), low silica levels (0.7% SiO2), and in a range of consistent sizes, 25-70 AFS.
However, in its second quarter 2011 results, Amcol reported that the rest of 2011 would remain challenging, and for the year, the Illinois-based company expects its chromite operation to generate losses of 8-12 cents per share as the plant is upgraded to improve product yields.
Joe Howden, director business development, Amcol International Foundries Group, told IM: “As with all new plants, we have had some start-up problems, these have and are being addressed via modifications and further investment to increase capacity.”
HOFFMAN ESTATES, Ill., May 22, 2009 /PRNewswire-FirstCall/ -- AMCOL International Corporation (NYSE: ACO - News) has approved funding for an investment in a chromite processing facility in the Republic of South Africa ("RSA"). On February 23, 2009, AMCOL announced it acquired a 53% controlling interest in a chromite mine in the RSA. Chromite is a key ingredient in molds that are used in the production of heavy-steel castings. An example of these castings, which generally weigh more than four metric tons, is a turbine housing in a power station. AMCOL, through its subsidiary, American Colloid Company, is a leading supplier of chromite sand to U.S. foundries.
The plant will be constructed on the mine site, Farm Ruighoek 169, which is located in the North West Province. Estimated cost of the facility, including infrastructure for future expansion, is ZAR 130 million ($15.3 million). A RSA-based firm has been engaged to design, engineer, procure and manage construction of the facility. The plant, which has a design capacity of 100,000 metric tons, is expected to produce at commercial-scale in April, 2010.
Gary Castagna, President, Global Minerals commented "The Ruighoek facility will employ technology specifically designed to produce foundry-grade chromite sand as well as other high-value grades. The process will allow us to produce consistent, high-quality product that can be tailored for different casting designs. As a direct supplier, our customers will have better assurance they will receive the best quality product plus technical service at the exceptional levels for which we are known in the iron-castings industry."
Larry Washow, Chief Executive Officer, also noted "This plant investment coupled with our controlling interest in a high-quality reserve will enable AMCOL to become a global leader in foundry-grade chromite sand. The RSA investment has the potential to become a significant contributor to earnings within the next few years."
Couldn't remember who was in charge when they bought this chromite business. Looks like it was Washow. Originally, they invested $15 million. Not sure how much additional capital was invested trying to get it to run properly, but they wrote off $52 million today and still own the operation. Maybe that purchase was the start of Washow's downfall. Wonder what they are valuing the chromite SA business at currently. Seems like the story on the chromite business has changed every quarter, but never for the better.
Thanks for posting Algo. Almost wish I could call myself a former shareholder. They have been struggling with the chromite business almost from the start. Maybe this will be the kitchen sink quarter that gets all the bad stuff thrown out, but I'm not so sure. Going to listen to the CC in a minute, maybe they will give some idea if they have a plan to get things going.
I have no idea on the impact on share price, but I thought I would mention what happened with Bunge yesterday. They had a loss and write-down on their sugar operations in Brazil which was sizable. Talked of possibly selling business which might involve further write downs. Rest of their business was doing well, but notsurprisingly well (earnings without write-down were a bit below yahoo forecast). Stock price did NOT move much.
I am a former shareholder, and am not trying to influence anything.
Well, Algo, that was a nice post you made before Yahoo decided to delete it. At least I got to read it first. I did listen to the CC
ACO was just upgraded by UA (underground stock alerts- google them ) to a BUY with a new price target of 43 that’s HUGE. i’m subscribed to UA’s free newsletter, their subscriber base is huge, the last time they alerted a buy the stock ended up going up 1350% in a very short period, no way this will happen with ACO but it’s still very positive. i’ve made over $200k with their free alerts so far so it’s definitely not something to sneeze at.
Hard to be wrong when it's already there.
AMCOL International Corp. Given New $33.00 Price Target at Wedbush (ACO)
July 9th, 2013 - 0 comments - Filed Under - by Patrick Bannon