From cement to copper: Lucky Cement ramps up mining investment in Balochistan
The cement maker disclosed the development in its notice to the Pakistan Stock Exchange (PSX) on Monday.
'The Board of Directors of the company has recommended that the company makes further equity investment, of an amount of up to Rs1.2 billion, in its associated company, NRL, by subscribing to shares of NRL and acquisition of additional 250 ordinary shares of NRL from Muhammad Ali Tabba, a related party of the company,' read the notice.
The listed company shared that this further investment is intended for NRL to conduct pre-feasibility studies, including physical geology, drilling, and mineral resource estimation.
'The above investment shall be subject to obtaining necessary corporate and regulatory approvals, including the approval of the shareholders of the Company in accordance with Section 199 of the Companies Act, 2017, read with the Companies (Investment in Associated Companies or Associated Undertakings) Regulations, 2017,' read the notice.
NRL is a joint venture company in which Lucky Cement holds 33.33% equity. It was established to carry out activities in the field of exploration and mining of metals, i.e. mainly gold and copper.
Back in April, the NRL announced a discovery of significant copper-gold mineralisation in Chagai, Balochistan.
The company was awarded a lease in October 2023. The licensed area contained two known porphyry prospects with strong exploration potential.
Financial results
On a consolidated basis, Lucky Cement reported gross revenue of Rs559.2 billion in FY25, up 14.3% from Rs489.4 billion recorded last year.
'This increase was driven mainly by improved performance from the Company and its subsidiary, Lucky Motor Corporation,' said the company.
The company's net profit clocked in at Rs84.5 billion, of which Rs7.5 billion was attributable to non-controlling interests. This translated into an EPS of Rs52.53 for FY 2025, compared to Rs44.10 in the last year, which is a 19.1% increase.
Lucky Cement said that the improvement in net profit was 'primarily driven by the increased profitability of local and foreign cement operations, followed by Lucky Motor Corporation and Lucky Core Industries Limited'.
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