Kharazmi Investment Group Directors Convene in Urmia for 9th Conference
Northwestern city of Urmia (West Azarbaijan Province) on the closing days of the month of Mordad (mid August) was host to the 9th Conference of the Directors of Kharazmi Investment Group which was attended by active directors and experts of the Group.
The Conference, which was held at Ana Hotel on August 16-17 and hosted by Sadr Jahan Mining Development Company, was aimed at following up the goal of monitoring the seven-year strategic plan of Kharazmi Investment Group in the presence of the managing director, members of the board of directors, deputies and managers of Kharazmi Investment Group together with the managing director and members of the board of directors of the companies affiliated to Kharazmi Investment Group as well as a number of senior experts.
Dr. Hojatollah Saydi, Managing Director of Kharazmi Investment Group, as the first speaker stressed on the importance of the periodic conferences of Kharazmi in the evaluation of the performance of the subsidiary companies with the future planning. He noted: “Accomplishing a total asset value of $10 billion and reaching 1% of the country’s gross domestic product by the end of 1399 (2020) and realization of sustainable wealth creation for generations requires hard work which is fulfilled by the Kharazmi team.”
Referring to the achievements of the previous conference which was held in Shiraz in the month of Bahman 1395 (January/February 2017), Dr. Saydi noted: “In the previous conference 21 main activities of the company were defined explicitly and precisely to be implemented in 1396 (March 2017 – March 2018). Today, three months remain to the end of the fiscal year, and parts of the 21 activities have borne fruit and in some other parts we need to make greater efforts. However, thanks to this approach at the end of the month of Mordad (August 22) when the financial statements are expected to be placed on the CODAL (Comprehensive DataBase of All Listed Companies), promising results are supposed to be presented.
He said: “Despite the negative adjustments that have occurred in some of the capital market companies and banks in the recent months, Kharazmi has presented an acceptable financial statement. Currently from among 22 exchange banks, only six assemblies have been held and many of the banks are not in good condition. Despite all the financial constraints, in the section of Kharazmi controlling companies an outstanding profit could be made which could not be achieved in the absence of planning. However, our exchange portfolio has generally had a negative adjustment which has been out of our control.”
The Managing Director of Kharazmi Investment Group announced formation of a Kharazmi think tank with an aim of planning for the post-2021 years and stressed: “Current problems should not make us neglect the future. The business environment will drastically change in the near future and many of the businesses would not exist anymore. The Kharazmi Group has decided to think of the years after 1400 regardless of the daily trends and fulfill its long-term goals through sound planning and without paying attention to the margins.
Foundation of Gold and Precious Metals Holding in Tehran
Dr. Hassan Ali Qanbari, Managing Director of Sadr Jahan Mining Development Company, was the second speaker of the conference who said: “The idea of the formation of Gold and Precious Metals Holding in Iran was a blessing in compliance with the sustainable wealth generation. The production field was crystalized on three axes: first planting, second growing and third harvesting.
“We have taken the first step which is the ownership of seven mines: Shadan porphyry gold-copper mine; Palasar copper mine, south of Shadan, Vargahan gold mine, Qazivali molybdenum gold-copper mine, Qabaq Tappeh molybdenum gold-copper mine, Ardestan gold-copper mine, and Rashidabad gold-copper mine.”
He said: “Our second step was to receive the permission of the Ministry of Industry. In the third step we realized production of the first sample gold and our fourth step was excavation of 17 thousand square meters in the vicinity of Shadan. The excavation prepared the ground for access to 40 tons of gold of which certificate of discovery has been received from the Industry Ministry for 15.6 tons and its exploration permit has been included in the list of the assets of the group.”
Survey of Overall Position of Gold in the World and In Iran
Engineer Mohammad Zarkesh, Chairman of Board of Directors of Sadr Jahan Mining Development Company while referring to the importance of investment in gold and precious metals said: “Up to the present day 170 thousand tons of gold has been extracted in the world and 110 thousand tons of potential reserves exist in the world. In the meantime, only 28 thousand tons of mine reserves are being exploited and there is a big difference between the potential reserves and the amount being exploited.”
He added: “In the past three decades, the consumption of gold for investment has experienced 235% growth due to market fluctuations and governments have rushed towards gold as a capital backing. The central banks from 1987 up to 2009 have sold about 7800 tons of gold. The purchase of coins and bullion has made a growth of about 9% in the past 15 years. The growth rate of gold consumption in the world has been an average of 2% per year.”
Zarkesh said: “Iran too has been faced with the growth in gold consumption in recent years. Due to the escalation of the trade sanctions, the Central Bank has turned to purchasing gold from the international markets. The US and Germany stand in the first and second places in terms of strategic gold reserves. China and Russia buy more gold than any other country in order to increase their strategic reserves.”
The Chairman of the Board of Directors of Sadr Jahan Mining Development Company while emphasizing on the strategic measure by the Kharazmi Group in making investment in gold and precious metals said: “In recent years, reserves and mines which are under exploitation have experienced a declining trend. As a result gold supply has declined in the world. Under such circumstances those who have access to the mines, will be in a good position and it is predicted that the gold price with further rise in future.”
Study of Performance Report and Programs of Kharazmi Companies
In continuation of the ceremony, Morteza Sami, vice-chairman of the companies and associations of Kharazmi Investment Company examined and compared the sales and performance of subsidiary companies of Kharazmi in the Persian years 1394 (2015-2016), 1395 (2016 - 2017) and 1396 (2017 – 2018) and surveyed factors of the growth and obstacles facing the development of the companies.
Commenting on the problems of the holdings in Iran Sami said: “Many companies enter the holdings without examining profitability and paying attention to the importance of control and characteristics of the holding. Possibly, there are holdings which have been formed merely for the development of the scope of power of the administrators.”
He added: “The results of David Yang’s research work on the size of the staff show that large organizations tend to have a relatively small size staff. Having more communication and influence on the subsidiaries, pushes the organization’s staff towards enlargement and this is an issue that Kharazmi has so far avoided.”
On the first day of the Conference, the first roundtable of the 9th Kharazmi confab under the title “Kharazmi’s Pathway: Analysis of the 1395 Performance” was held with the participation of Dr. Abolalaei, a faculty member of Iran Industrial Management Organization, Engineer Mohammad Reza Alaei Taleqani Managing Director of Niroo Parse Power Plant Development Company, Engineer Heidari Managing Director of Kharazmi Construction Development Company and Engineer Seyeddin Managing Director Ati Negar Iranian Investment Company and members of the panel reviewed damages, challenges and obstacles hindering realization of the objectives the company.