It seems we are scaling new heights in our capital asset division. We have just been re-awarded the De Beers contract for the third time after going through a rigorous public tender. This will be the 11th year we have handled this account and were re-awarded it for the last five years based on performance and professionalism.
The mining sector remains a credible source of assets as too little attention is given to effective disposal of their assets once the OEM life of the equipment expires. Traditionally companies simply left old equipment out in the fields and sold it to employees on an ad hoc basis. Why, when we procure assets do we ensure best quotes and compare prices and quality, yet disposal rarely receives similar structured attention. The recent flood of equipment and heavy duty machinery making its way through the auction doors is tangible and makes it apparent that the returns justify a structured and efficient disposal, particularly when every cent starts to count for shareholders.
In addition, 2010 has seen Auction Alliance conduct similar auctions of redundant assets including:
• Xstrata Coal achieving R5.2million (expected value R2.5million),
• City of Cape Town (Alliance won and managed the 2007-2010 tender),
• Webber Wentzel and MSC sale of 139 arrested passenger vehicles, recovering 110 cents on the Rand,
• Government Motor Transport: whose work Alliance has handled for almost two years now with above mandate returns on every auction,
• Transnet – MV ‘Capensis’ and MV ‘Cleaner’ that were arrested and sold in August, and a submarine ‘Taurus’ and MV ‘Golden Firefly’ coming under the Alliance hammer on September 16 at Webber Wentzel’s Cape Town premises.
Other assets handled by the group include a submarine for Transnet in 2010, several Nationwide 737 aircrafts in 2009 and a Transhex diamond mining ship from Namibia, which was sold to a Russian investor for R36million in 2008. This is no mean feat and reflects our value adding role in this sector.
All of these auctions received extensive market campaigns and client lobbying; which attracted international interest as far as Sweden, Netherlands and Russia; and warranted external condition reports and research to provide credible due diligence to bidders. This is the feedback we receive continuously, that we legitimize the assets we are taking to market through credible preparation for bidders. This is what we strive to achieve and maintain as a reputation.
We have formed a tight team of key individuals who bring a unique set of skills to the capital asset team. Our focus is Blue Chip clients in the listed or Government sector with specific assets to dispose off through a structured, high profile, national network. This is where we excel and our performance stands testimony. We are not competing with other houses whose model is volume moveables that require warehousing. Our focus is specific clients with niche assets that require a non standard approach and out the box thinking.