BEIJING, Nov. 14, 2011 /PRNewswire-Asia-FirstCall/ --
China Shen Zhou Mining & Resources, Inc. ("China Shen Zhou" or the "Company") (NYSE AMEX:
SHZ), a Company engaged in the exploration, development, mining and
processing of fluorite, zinc, lead, copper, and other nonferrous
metals in China, today announced
financial results for the third quarter and nine months ended
September 30, 2011.
Third Quarter Financial
Highlights
- Revenues increased 96.3% over the previous year's period to
$7.1 million;
- Gross profit increased 64.4% rose to $2.9 million compared with $1.7 million for the same period of 2010;
- Net income rose to $681,000
compared with $515,000 for the same
period of 2010;
- Net income per common share from continuing operations was
$0.02, the same as the same period of
2010.
Ms. Xiaojing Yu, Chairperson and
Chief Executive Officer of China Shen
Zhou commented, "We are pleased to have delivered strong
growth for the third quarter. This growth has been driven by
increased global demand and soaring prices for fluorite resources
as well as the Chinese government's policies of tightening
restrictions for new entrants into the fluorite production
industry. Our strategy is to continue to expand our
production of fluorite products and leverage our industry leading
position to acquire additional fluorite resources."
Third Quarter Financial Results
Third quarter net sales increased $3.5 million or 96.3% to
approximately $7.1 million compared
to the prior year's period. The increase in net sales was
mainly due to both a higher selling price and greater sales volume
for fluorite powder in the third quarter of 2011.
Sales volume of fluorite powder reached approximately 8,800
tons, an increase of approximately 7,600 tons, or 633%, as compared
to the same period of 2010. Prices for fluorite powder
increased to $382 per ton, an
increase of $249 per ton, or a 188%
increase as compared to the same period of 2010.
Gross profit increased by approximately 64.4% to $2.9 million compared with gross profit of
$1.7 million in the third quarter of
2010. The gross profit increase for the fluorite segment was driven
by a higher average sale price for fluorite powder and an increase
in sales volume of fluorite powder. The gross profit margin was
40.3% in the 2011 third quarter.
Selling expenses in the third quarter increased to $24,000 from $16,000 in the comparable period last year.
Selling expenses as a percentage of total net sales was 0.3%,
down from 0.4% in the third quarter of 2010.
General and administrative expenses in the third quarter
increased by approximately $926,000
to $2 million compared with
$1.1 million in the 2010 third
quarter. The increase in general and administrative expenses
was due to the increased shutdown expense of $204,000 for Xingzhen Mining, greater
administrative expense of $232,000
for the newly acquired Xinyi Fluorite operation and higher
professional fees for being listed as a public company in the U.S.,
the Xinyi Fluorite acquisition audit, investor relations, and other
expenses. General and administrative expenses as a percentage of
total net sales decreased to 28.6% from 30.6% in the third quarter
of 2010.
Total operating expenses in the third quarter of 2011 were
$2.1 million compared with
$1.1 million in the third quarter of
2010. Total operating expenses as a percentage of total net sales
decreased to 29.0% from 31.0% in the third quarter of 2010.
Operating income for the quarter was $805,000 compared to $618,000 in the 2010 third quarter.
Net income was $681,000, or
$0.02 per diluted and basic share,
compared with $515,000, or
$0.02 per diluted and basic share, in
the 2010 third quarter.
Nine-Month Financial Results
Net revenues for the nine months ended September 30, 2011 increased $11.4 million or 169.5% over the prior year's
period to approximately $18.1
million. The improved performance was due to an increased
average selling price and higher sales volume from the fluorite
segment.
Nine-month gross profit increased by 247.2% to approximately
$7.9 million from $2.3 million for the same period of 2010. The
gross profits from the fluorite segment were approximately
$7.4 million and $464,000 for the nine months ended September 30, 2011 and 2010, respectively. The
gross profits from the non-ferrous metal segment were approximately
$387,000 and $1.8 million for the nine months ended
September 30, 2011 and 2010,
respectively. The fluorite segment's gross profit increase was
mainly due to the increased average sales price of fluorite powder
to $339 per ton for the nine months
ended September 30, 2011. This
increase was approximately $209 per
ton, or 161.0% higher, as compared to the same period of 2010.
Fluorite powder sales volume for the nine months ended September 30, 2011 was approximately 31,400 tons,
an increase of approximately 22,600 tons, or 257%, as compared to
the same period of 2010. The gross profit margin was
approximately 43.4% for the nine months ended September 30, 2011, which increased from
33.7% for the same period of 2010.
Net loss for the nine months ended September 30, 2011 was approximately $0.8 million compared to a net loss of
$0.8 million for the same period in
2010. Basic net loss per share for the nine months ended
September 30, 2011 was $0.03, which is the same as the comparable period
a year ago.
Cash and cash equivalents were $8.4
million as of September 30,
2011, an increase of $6.9
million as compared to $1.5
million at December 31, 2010.
2010.
Recent Developments
Ms. Yu, Chairperson and Chief Executive Officer of China Shen Zhou attended the Chinese fluorite
annual conference held by the Chinese fluorite special committee at
Xiamen between October 31, 2011 and November 2, 2011. The conference concluded
that both the domestic and foreign downstream fluorite enterprises
are experiencing normal production with stable fluorite demand. The
European debt crisis has had little effect on the Chinese fluorine
chemical industry. Downstream manufacturers are exhausting
their inventories requiring new orders to be placed soon.
Therefore, China Shen Zhou is very
optimistic on the fluorite market for the next few quarters.
About China Shen Zhou Mining & Resources, Inc.
China Shen Zhou Mining & Resources, Inc., through its
subsidiaries, is engaged in the exploration, development, mining,
and processing of fluorite and nonferrous metals such as zinc, lead
and copper in China. The Company
has the following principal areas of interest in China: (a) fluorite extraction and processing
in the Sumochaganaobao region of Inner Mongolia; (b) fluorite
extraction and processing in Jingde County, Anhui Province; (c)zinc/copper/lead processing
in Wulatehouqi of Inner Mongolia; and (d) zinc/copper exploration,
mining and processing in Xinjiang.
For more information, please visit http://www.chinaszmg.com/
Safe Harbor Statement
This press release may include certain statements that are not
descriptions of historical facts, but are forward-looking
statements. Forward-looking statements can be identified by the use
of forward-looking terminology such as "will", "believes",
"expects" or similar expressions. These forward-looking statements
may also include statements about our proposed discussions related
to our business or growth strategy, which is subject to change.
Such information is based upon expectations of our management that
were reasonable when made but may prove to be incorrect. All of
such assumptions are inherently subject to uncertainties and
contingencies beyond our control and upon assumptions with respect
to future business decisions, which are subject to change. We do
not undertake to update the forward-looking statements contained in
this press release. For a description of the risks and
uncertainties that may cause actual results to differ from the
forward-looking statements contained in this press release, see our
most recent Annual Report filed with the Securities and Exchange
Commission (SEC) on Form 10-K, and our subsequent SEC filings.
Copies of filings made with the SEC are available through the SEC's
electronic data gathering analysis retrieval system (EDGAR) at
http://www.sec.gov .
Contact Information
Min Liu
Investor Relations
Grayling
Tel: +1-646-284-9413
min.liu@grayling.com
- Tables Follow -
CHINA SHEN
ZHOU MINING & RESOURCES,
INC. AND
SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
(Amounts in
thousands, except share data)
|
|
|
|
September 30,
2011
|
|
|
December 31,
2010
|
|
|
|
|
(Unaudited)
|
|
|
(Audited)
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
8,422
|
|
|
$
|
1,545
|
|
|
Notes
receivable
|
|
|
992
|
|
|
|
-
|
|
|
Accounts receivable,
net
|
|
|
1,032
|
|
|
|
162
|
|
|
Prepayment for office
rent
|
|
|
-
|
|
|
|
82
|
|
|
Advances to
suppliers
|
|
|
2,184
|
|
|
|
333
|
|
|
Other deposits,
net
|
|
|
1,853
|
|
|
|
517
|
|
|
Inventories
|
|
|
8,066
|
|
|
|
7,243
|
|
|
Restricted
assets
|
|
|
174
|
|
|
|
70
|
|
|
Assets - Discontinued
operations
|
|
|
-
|
|
|
|
1,188
|
|
|
Total current
assets
|
|
|
22,723
|
|
|
|
11,140
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, machinery and mining
assets, net
|
|
|
49,166
|
|
|
|
33,052
|
|
|
Total assets
|
|
$
|
71,889
|
|
|
$
|
44,192
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
2,325
|
|
|
$
|
2,434
|
|
|
Short term loans
|
|
|
10,078
|
|
|
|
8,061
|
|
|
Receipts in advance
|
|
|
4,794
|
|
|
|
2,058
|
|
|
Other payables and
accruals
|
|
|
2,052
|
|
|
|
4,053
|
|
|
Taxes payable
|
|
|
851
|
|
|
|
644
|
|
|
Liabilities - Discontinued
operations
|
|
|
-
|
|
|
|
100
|
|
|
Total current
liabilities
|
|
|
20,100
|
|
|
|
17,350
|
|
|
|
|
|
|
|
|
|
|
|
|
Long term loans
|
|
|
-
|
|
|
|
2,630
|
|
|
Due to related
parties
|
|
|
157
|
|
|
|
2,439
|
|
|
Total
liabilities
|
|
|
20,257
|
|
|
|
22,419
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
|
|
|
|
|
|
Common stock ($0.001 par value;
50,000,000 shares authorized;
|
|
|
|
|
|
|
|
|
|
32,285,973 shares and
27,974,514 shares issued and outstanding
|
|
|
|
|
|
|
|
|
|
as of September 30, 2011
and December 31, 2010 respectively)
|
|
|
32
|
|
|
|
28
|
|
|
Additional paid-in
capital
|
|
|
58,427
|
|
|
|
29,508
|
|
|
Statutory reserves
|
|
|
1,672
|
|
|
|
1,672
|
|
|
Accumulated other comprehensive
income
|
|
|
5,663
|
|
|
|
4,357
|
|
|
Accumulated deficit
|
|
|
(14,430)
|
|
|
|
(13,630)
|
|
|
Stockholders'
equity - China Shen Zhou Mining
& Resources, Inc. and Subsidiaries
|
|
|
51,364
|
|
|
|
21,935
|
|
|
Noncontrolling
interest
|
|
|
268
|
|
|
|
-
|
|
|
Noncontrolling
interest--Discontinued operations
|
|
|
-
|
|
|
|
(162)
|
|
|
Total
stockholders' equity
|
|
|
51,632
|
|
|
|
21,773
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
71,889
|
|
|
$
|
44,192
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHINA SHEN
ZHOU MINING & RESOURCES, INC. AND
SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Amounts in
thousands, except per share data)
|
|
|
|
For the Three Months Ended
|
|
|
For the Nine Months Ended
|
|
|
|
|
September
30,
2011
|
|
|
September
30,
2010
|
|
|
September
30,
2011
|
|
|
September
30,
2010
|
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
Net revenue
|
|
$
|
7,104
|
|
|
$
|
3,619
|
|
|
$
|
18,117
|
|
|
$
|
6,722
|
|
|
Cost of sales
|
|
|
4,242
|
|
|
|
1,878
|
|
|
|
10,247
|
|
|
|
4,455
|
|
|
Gross profit
|
|
|
2,862
|
|
|
|
1,741
|
|
|
|
7,870
|
|
|
|
2,267
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and distribution
expenses
|
|
|
24
|
|
|
|
16
|
|
|
|
84
|
|
|
|
67
|
|
|
General and administrative
expenses
|
|
|
2,033
|
|
|
|
1,107
|
|
|
|
7,459
|
|
|
|
2,986
|
|
|
Total operating
expenses
|
|
|
2,057
|
|
|
|
1,123
|
|
|
|
7,543
|
|
|
|
3,053
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) from
operations
|
|
|
805
|
|
|
|
618
|
|
|
|
327
|
|
|
|
(786)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
(174)
|
|
|
|
(197)
|
|
|
|
(520)
|
|
|
|
(387)
|
|
|
Other, net
|
|
|
(79)
|
|
|
|
106
|
|
|
|
(6)
|
|
|
|
406
|
|
|
Total other income
(loss)
|
|
|
(253)
|
|
|
|
(91)
|
|
|
|
(526)
|
|
|
|
19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing
operations before income taxes
|
|
|
552
|
|
|
|
527
|
|
|
|
(199)
|
|
|
|
(767)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefits
(expenses)
|
|
|
36
|
|
|
|
-
|
|
|
|
(244)
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing
operations
|
|
|
588
|
|
|
|
527
|
|
|
|
(443)
|
|
|
|
(767)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations of
discontinued component, net of taxes
|
|
|
-
|
|
|
|
(12)
|
|
|
|
(7)
|
|
|
|
(35)
|
|
|
Loss on disposal of
discontinued subsidiary, net of taxes
|
|
|
-
|
|
|
|
-
|
|
|
|
(82)
|
|
|
|
-
|
|
|
Loss from discontinued
operations
|
|
|
-
|
|
|
|
(12)
|
|
|
|
(89)
|
|
|
|
(35)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
588
|
|
|
|
515
|
|
|
|
(532)
|
|
|
|
(802)
|
|
|
Add (less):
Noncontrolling interests attributable to the noncontrolling
interests
|
|
|
93
|
|
|
|
-
|
|
|
|
(268)
|
|
|
|
-
|
|
|
Net income (loss) -
attributable to China Shen Zhou Mining & Resources, Inc. and
Subsidiaries
|
|
|
681
|
|
|
|
515
|
|
|
|
(800)
|
|
|
|
(802)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation
adjustments
|
|
|
534
|
|
|
|
295
|
|
|
|
1,306
|
|
|
|
341
|
|
|
Comprehensive income
(loss)
|
|
$
|
1,215
|
|
|
$
|
810
|
|
|
$
|
506
|
|
|
$
|
(461)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common
share – basic and diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From continuing
operations
|
|
$
|
0.02
|
|
|
$
|
0.02
|
|
|
$
|
(0.03)
|
|
|
$
|
(0.03)
|
|
|
From discontinued
operations
|
|
|
-
|
|
|
|
(0.00)
|
|
|
|
(0.00)
|
|
|
|
(0.00)
|
|
|
|
|
$
|
0.02
|
|
|
$
|
0.02
|
|
|
$
|
(0.03)
|
|
|
$
|
(0.03)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Basic and
Diluted
|
|
|
32,270
|
|
|
|
27,975
|
|
|
|
31,060
|
|
|
|
27,878
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHINA SHEN
ZHOU MINING & RESOURCES, INC AND
SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Amounts in
thousands, except share data)
|
|
|
|
For the Nine Months
Ended September 30,
|
|
|
|
|
2011
|
|
|
2010
|
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
Cash flows from operating
activities:
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(800)
|
|
|
$
|
(802)
|
|
|
Adjustments to reconcile net
loss to net cash used in operating activities:
|
|
|
|
|
|
|
|
|
|
Loss from operations of
discontinued component, net of income tax benefits
|
|
|
7
|
|
|
|
35
|
|
|
Loss on sale of
discontinued operations, net of income taxes
|
|
|
82
|
|
|
|
-
|
|
|
Provision for doubtful
accounts
|
|
|
(99)
|
|
|
|
-
|
|
|
Depreciation and
amortization
|
|
|
2,838
|
|
|
|
2,182
|
|
|
Noncontrolling
interests
|
|
|
268
|
|
|
|
-
|
|
|
Forgiveness of payroll
payables
|
|
|
-
|
|
|
|
(300)
|
|
|
Stock-based
compensation
|
|
|
972
|
|
|
|
-
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
|
(Increase) decrease in
-
|
|
|
|
|
|
|
|
|
|
Notes
receivable
|
|
|
(992)
|
|
|
|
-
|
|
|
Accounts
receivable
|
|
|
(771)
|
|
|
|
42
|
|
|
Advances to
suppliers
|
|
|
(1,840)
|
|
|
|
(140)
|
|
|
Other deposits
|
|
|
(1,313)
|
|
|
|
(175)
|
|
|
Prepayment for office
rent
|
|
|
82
|
|
|
|
147
|
|
|
Inventories
|
|
|
(578)
|
|
|
|
(4,157)
|
|
|
Restricted
assets
|
|
|
(103)
|
|
|
|
746
|
|
|
Increase (decrease) in
-
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
(867)
|
|
|
|
(1,939)
|
|
|
Receipts in
advance
|
|
|
2,666
|
|
|
|
(578)
|
|
|
Other payables and
accruals
|
|
|
(2,848)
|
|
|
|
118
|
|
|
Taxes payable
|
|
|
184
|
|
|
|
316
|
|
|
Net cash used in operating
activities from continuing operations
|
|
|
(3,112)
|
|
|
|
(4,505)
|
|
|
Net cash used in operating
activities from discontinued operations
|
|
|
(37)
|
|
|
|
23
|
|
|
Net cash used in operating
activities
|
|
|
(3,149)
|
|
|
|
(4,482)
|
|
|
Cash flows from investing
activities:
|
|
|
|
|
|
|
|
|
|
Purchases of property,
machinery and mining assets
|
|
|
(3,368)
|
|
|
|
(1,353)
|
|
|
Acquisition of
subsidiaries, net of cash and cash equivalents acquired
|
|
|
(3,642)
|
|
|
|
-
|
|
|
Sales of property,
machinery and mining assets
|
|
|
-
|
|
|
|
28
|
|
|
Net cash used in investing
activities from continuing operations
|
|
|
(7,010)
|
|
|
|
(1,325)
|
|
|
Net cash provided by
disposal of discontinued operations
|
|
|
-
|
|
|
|
(21)
|
|
|
Net cash used in investing
activities
|
|
|
(7,010)
|
|
|
|
(1,346)
|
|
|
Cash flows from financing
activities:
|
|
|
|
|
|
|
|
|
|
Due to related
parties
|
|
|
(737)
|
|
|
|
(20)
|
|
|
Proceeds from issuance of
common shares
|
|
|
20,000
|
|
|
|
-
|
|
|
Issuance costs of common
shares
|
|
|
(1,516)
|
|
|
|
-
|
|
|
Repayment at short-term
bank loans
|
|
|
(7,599)
|
|
|
|
(3,464)
|
|
|
Proceeds from short-term
bank loans
|
|
|
6,521
|
|
|
|
10,583
|
|
|
Net cash provided by
financing activities
|
|
|
16,669
|
|
|
|
7,099
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation
adjustment
|
|
|
367
|
|
|
|
(107)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in cash and cash
equivalents
|
|
|
6,877
|
|
|
|
1,164
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at the
beginning of the period
|
|
|
1,545
|
|
|
|
333
|
|
|
Cash and cash equivalents at the
end of the period
|
|
$
|
8,422
|
|
|
$
|
1,497
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash investing and financing
activities
|
|
|
|
|
|
|
|
|
|
Shares issued to employees as
share based compensation
|
|
$
|
972
|
|
|
$
|
752
|
|
|
Shares issued to Acquire Xinyi
Fluorite
|
|
$
|
9,467
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosures of cash
flow information:
|
|
|
|
|
|
|
|
|
|
Cash paid for interest
expenses
|
|
$
|
424
|
|
|
$
|
285
|
|
|
Cash paid for income
tax
|
|
$
|
54
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE China Shen Zhou Mining & Resources, Inc.