Independent AWARD WINNING and international renowned independent analysts, Tellimer, expects that recurring profits of Trustco will grow strongly over the medium term.
In a just released report on Trustco, Tellimer, a world class research house with analysts from all over the world and a strong presence in especially emerging markets, says it expects recurring profits to grow rapidly on the back of income generated from the diamond assets, higher property sales and fair value gains, and a growing student loan book.
They note that with Trustco’s two mines having both received mining licenses, approximately 6.8 million carats worth of high-quality diamonds will start to be extracted, which will have a positive impact on earnings starting in the next financial year.
In addition, with provisional approval to start a township on Farm Herboths, Tellimer expects to see growth in earnings via fair-value gains at first, until it is supported by sales as development proceeds.
Tellimer also notes that this is expected to take pressure off the existing financial services businesses of the group, which will allow the group’s assets – in particular, the growing student loan book – to generate healthy cash flows going forward.
The Tellimar report has been independently prepared and issued by Tellimar for publication and commissioned by Trustco Group Holdings Limited. The full report is available here: