Gencor's bet on Billiton pays off

Gencor's 1994 purchase of minerals and mining firm Billiton was something of a gamble for the South African firm, but it seems to have paid off. Billiton is now generating so much cash that talks are taking place over restructuring Billiton's debt in order to return more operating control to its management. For Gencor, the purchase was a gamble on the future of the aluminium industry, since some two thirds of Billiton's activities are linked to aluminium. Aluminium prices have risen sharply since 1994. In the first six months of FY94/95, Billiton contributed 34% to Gencor's group income.