China Shen Zhou Mining & Resources, Inc. Announces Financial Results for the First Quarter Ended March 31, 2010
(All figures are in U.S. dollars)
BEIJING, May 14 /PRNewswire-Asia-FirstCall/ -- China Shen Zhou Mining & Resources, Inc. (NYSE Amex: SHZ) ("China Shen Zhou", or the "Company"), a leading Company engaged in the exploration, development, mining and processing of fluorite, zinc, lead, copper, and other nonferrous metals in China, today announced the financial results for the first quarter ended March 31, 2010.
First Quarter 2010 Highlights:
Total net revenues increased by 50% in the first quarter of 2010 as compared to the same period in 2009 to US$0.9 million from US$0.6 million.
Net loss attributable to the Company and subsidiaries decreased by 66.7% in the first quarter of 2010 as compared to the same period in 2009 to US$0.8 million from US$2.4 million.
Net Loss from operations decreased by 23.1% in the first quarter of 2010 as compared to the same period in 2009 to US$1 million from US$1.3 million.
Basic and diluted net losses per share from continuing operations was US$0.02 in the first quarter of 2010 and US$0.10 as compared to the first quarter of 2009.
"Although we had net loss in the first quarter of 2010, the net loss number was significantly less as compared with the same period of 2009," said Ms. Xiaojing Yu, the Chairwoman and CEO of the Company. "The production situation of our subsidiaries met expectations and the price of fluorite ore and nonferrous metals were steady. Thus we are very confident in carrying out the operational plan of the full year of 2010."
About China Shen Zhou Mining & Resources, Inc.
China Shen Zhou Mining & Resources, Inc., through its subsidiary, American Federal Mining Group ("AFMG"), 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) zinc/copper/lead exploration, mining and processing in Wulatehouqi of Inner Mongolia; and (c) zinc/copper exploration, mining and processing in Xinjiang.
For more information, please visit http://www.chinaszmg.com/
Safe Harbor Statement
Certain of the statements made in the press release constitute forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward- looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology. Such statements typically involve risks and uncertainties and may include financial projections or information regarding our future plans, objectives or performance. Actual results could differ materially from the expectations reflected in such forward-looking statements as a result of a variety of factors, including the risks associated with the effect of changing economic conditions in the People's Republic of China, variations in cash flow, fluctuation in mineral prices, risks associated with exploration and mining operations, and the potential of securing additional mineral resources, and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time.
For more information, please contact: In China: Fulun Song Office of the Board of Directors China Shen Zhou Mining & Resources, Inc. Tel: +86-10-8890-9976 Fax: +86-10-8890-6927 Email: [email protected] Web: http://www.chinaszmg.com In the U.S.: David Elias Investor Relations DME Capital LLC Tel: +1-516-967-0205 Email: [email protected] Financial Tables Follow CHINA SHEN ZHOU MINING & RESOURCES, INC AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except share data) March 31, December 31, 2010 2009 (Unaudited) (Audited) ASSETS Current assets: Cash and cash equivalents $ 869 $ 333 Accounts receivable, net 272 302 Other deposits and prepayments, net 1,080 855 Inventories 5,433 3,721 Restricted assets 732 740 Total current assets 8,386 5,951 Prepayment for office rent 230 280 Available for sale investment 146 146 Property, machinery and mining assets, net 34,359 34,902 Total assets $ 43,121 $ 41,279 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 4,546 $ 4,694 Short term bank loans 3,160 3,603 Other payables and accruals 9,181 6,667 Taxes payable 351 333 Total current liabilities 17,238 15,297 Due to related parties 2,281 2,297 Total liabilities 19,519 17,594 STOCKHOLDERS' EQUITY: Common stock ($0.001 par value; 50,000,000 shares authorized; 27,974,514 shares and 27,214,514 shares issued and outstanding as of March 31, 2010 and December 13, 2009 respectively $ 28 $ 27 Additional paid-in capital 29,270 28,518 Statutory reserves 1,672 1,672 Accumulated other comprehensive income 3,819 3,839 Accumulated deficit (11,153) (10,342) Stockholders' equity - China Shen Zhou Mining & Resources, Inc. and 23,636 23,714 Subsidiaries Noncontrolling interest (34) (29) Total stockholders' equity 23,602 23,685 Total liabilities and stockholders' equity $ 43,121 $ 41,279 CHINA SHEN ZHOU MINING & RESOURCES, INC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Amounts in thousands, except per share data) For the Three Months Ended March 31, 2010 2009 (Unaudited) (Unaudited) Net revenue $ 921 $ 619 Cost of sales 848 557 Gross profit 73 62 Operating expenses: Selling and distribution expenses 13 4 General and administrative expenses 1,078 1,392 Total operating expenses 1,091 1,396 Net loss from operations (1,018) (1,334) Other income (expense): Interest expense (86) (962) Other, net 288 96 Total other income (loss) 202 (866) Loss from continuing operations before income taxes (816) (2,200) Income tax expenses - - Loss from continuing operations (816) (2,200) Discontinued operations : Loss from operations of discontinued component, net of taxes - (158) Loss from discontinued operations - (158) Net loss (816) (2,358) Less: Noncontrolling interests attributable to the noncontrolling interests 5 (22) Net loss - attributable to China Shen Zhou Mining & Resources, Inc. and Subsidiaries (811) (2,380) Other comprehensive income: Foreign currency translation adjustments (20) 191 Comprehensive loss $ (831) $ (2,189) Net loss per common share - basic and diluted From continuing operations (0.02) (0.10) From discontinued operations - (0.01) $ (0.02) $ (0.11) Weighted average common shares outstanding - Basic and Diluted 27,762 22,215 CHINA SHEN ZHOU MINING & RESOURCES, INC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands, except share data) For the Three Months Ended March 31, 2010 2009 (Unaudited) (Unaudited) Cash flows from operating activities: Net loss $ (811)$ (2,380) Adjustments to reconcile net loss to net cash provided by operating activities: Loss from operations of discontinued component, net of income tax benefits - 158 Depreciation and amortization 695 1,051 Fair value adjustment of warrants - 21 Accrual of coupon interests and accreted principal - 386 Amortization of deferred financing costs - 401 Amortization of debt issuance costs - 106 Noncontrolling interests (5) (22) Forgiveness of payroll payables (300) - Changes in operating assets and liabilities: (Increase) decrease in - Accounts receivable 30 195 Other deposits and prepayments (226) (88) Prepayment for office rent 50 10 Inventories (1,717) 397 Restricted assets 7 - Increase (decrease) in - - - Accounts payable (142) (203) Other payables and accruals 3,574 230 Taxes payable 18 (147) Net cash provided by operating activities from continuing operations 1,173 115 Net cash provided by operating activities from discontinued operations - 66 Net cash provided by operating activities 1,173 181 Cash flows from investing activities: Purchases of property, machinery and mining assets $ (208)$ (31) Net cash used in investing activities from continuing operations (208) (31) Net cash used in investing activities (208) (31) Cash flows from financing activities: Due to related parties $ (14)$ (117) Repayment at short-term bank loans (731) - Proceeds from short-term bank loans 293 - Net cash used in financing activities (452) (117) Foreign currency translation adjustment 23 52 Net decrease in cash and cash equivalents 536 85 Cash and cash equivalents at the beginning of the period 333 205 Cash and cash equivalents at the end of the period $ 869 $ 290 Non-cash investing and financing activities Shares issued to employees as share based $ compensation 753 - Supplemental disclosures of cash flow information: Cash paid for interest expenses $ 74 $ 47 Cash paid for income tax $ - $ -
SOURCE China Shen Zhou Mining & Resources, Inc.
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