China Shen Zhou Mining & Resources, Inc. Announces Financial Results for the Second Quarter Ended June 30, 2010
(All figures are in U.S. dollars)
BEIJING, Aug. 10 /PRNewswire-Asia-FirstCall/ -- China Shen Zhou Mining & Resources, Inc. ("China Shen Zhou", or the "Company") (Amex: SHZ), 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 second quarter ended June 30, 2010.
Second Quarter 2010 Highlights:
Total net revenues increased by 210% in the second quarter of 2010 as compared to the same period in 2009 to US$2.2 million from US$0.7 million.
Gross profit increased by approximately 180% in the second quarter of 2010 as compared to the same period in 2009 to US$0.45 million from US$0.16 million.
Net loss attributable to the Company and subsidiaries decreased by approximately 70% in the second quarter of 2010 as compared to the same period in 2009 to US$0.5 million from US$1.7 million.
Net Loss from operations decreased by approximately 69% in the second quarter of 2010 as compared to the same period in 2009 to US$0.5 million from US$1.6 million.
Basic and diluted net loss per share from continuing operations was US$0.02 in the second quarter of 2010 and US$0.07 in the second quarter of 2009.
"I am proud of how our team executed our plans in the second quarter and first half of 2010. While global economic conditions continue to appear sluggish, we posted good results in the second quarter," said Ms. Xiaojing Yu, the Chairwoman and CEO of the Company. "We remain focused on executing our growth strategy by increasing the production of fluorite and exploration of new resources to achieve our financial target 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 to Follow
CHINA SHEN ZHOU MINING & RESOURCES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)
June 30, December 31,
2010 2009
(Unaudited) (Audited)
ASSETS
Current assets:
Cash and cash equivalents $463 $333
Accounts receivable, net 274 302
Other deposits and prepayments, net 1,026 855
Inventories 6,594 3,721
Restricted assets 8 740
Total current assets 8,365 5,951
Prepayment for office rent 198 280
Available for sale investment 147 146
Property, machinery and mining assets, net 34,098 34,902
Total assets $42,808 $41,279
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $3,163 $4,694
Short term bank loans 7,931 3,603
Other payables and accruals 6,135 6,667
Taxes payable 379 333
Total current liabilities 17,608 15,297
Due to related parties 2,047 2,297
Total liabilities 19,655 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 June 30, 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 3,885 3,839
Accumulated deficit (11,658) (10,342)
Stockholders' equity - China Shen Zhou Mining &
Resources, Inc. and Subsidiaries 23,197 23,714
Noncontrolling interest (44) (29)
Total stockholders' equity 23,153 23,685
Total liabilities and stockholders' equity $42,808 $41,279
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 Six Months Ended
June 30, June 30, June 30, June 30,
2010 2009 2010 2009
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Net revenue $2,182 $726 $3,103 $1,345
Cost of sales 1,729 566 2,577 1,123
Gross profit 453 160 526 222
Operating expenses:
Selling and
distribution
expenses 38 14 51 18
General and
administrative
expenses 834 793 1,911 2,184
Total operating
expenses 872 807 1,962 2,202
Net loss from
operations (419) (647) (1,436) (1,980)
Other income
(expense):
Interest expense (108) (997) (194) (1,959)
Other, net 13 22 300 117
Total other loss (95) (975) 106 (1,842)
Loss from continuing
operations before
income taxes (514) (1,622) (1,330) (3,822)
Income tax expenses -- -- -- --
Loss from continuing
operations (514) (1,622) (1,330) (3,822)
Discontinued
operations:
Loss from operations
of discontinued
component, net of
taxes -- (88) -- (246)
Loss from
discontinued
operations -- (88 -- (246)
Net loss (514) (1,710) (1,330) (4,068)
Less: Noncontrolling
interests attributable
to the noncontrolling
interests 9 44 14 22
Net loss - attributable
to China Shen Zhou
Mining & Resources,
Inc. and Subsidiaries (505) (1,666) (1,316) (4,046)
Other comprehensive
income:
Foreign currency
translation
adjustments 66 (5) 46 186
Comprehensive income
(loss) $(439) $(1,671) $(1,270) $(3,860)
Net loss per common
share - basic
and diluted
From continuing
operations (0.02) (0.07) (0.04) (0.17)
From discontinued
operations -- (0.00) -- (0.01)
$(0.02) $(0.07) $(0.04) $(0.18)
Weighted average
common shares
outstanding
- Basic and Diluted 27,975 22,215 27,852 22,215
CHINA SHEN ZHOU MINING & RESOURCES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands, except share data)
For the Six Months Ended
June 30,
2010 2009
(Unaudited) (Unaudited)
Cash flows from operating activities:
Net loss $(1,316) $(4,046)
Adjustments to reconcile net loss to net cash
used in operating activities:
Loss from operations of discontinued
component, net of income tax benefits -- 246
Depreciation and amortization 1,365 1,357
Fair value adjustment of warrants -- 60
Accrual of coupon interests and accreted
principal -- 774
Amortization of deferred financing costs -- 802
Amortization of debt issuance costs -- 211
Noncontrolling interests (15) (22)
Forgiveness of payroll payables (300) --
Changes in operating assets and liabilities:
(Increase) decrease in -
Accounts receivable 28 (224)
Other deposits and prepayments (171) (270)
Prepayment for office rent 82 105
Inventories (2,873) (279)
Restricted assets 732 (359)
Increase (decrease) in -
Accounts payable (1,531) 321
Other payables and accruals 528 514
Taxes payable 46 (264)
Net cash used in operating activities
from continuing operations (3,425) (1,075)
Net cash used in operating activities
from discontinued operations -- 71
Net cash used in operating activities (3,425) (1,004)
Cash flows from investing activities:
Purchases of property, machinery and
mining assets (461) (385)
Net cash used in investing activities from
continuing operations (461) (385)
Net cash provided by disposal of discontinued
operations -- --
Net cash provided by (used in) investing
activities (461) (385)
Cash flows from financing activities:
Repayment at the convertible notes --
Due to related parties (250) (440)
Repayment at short-term bank loans (2,732) --
Proceeds from short-term bank loans 7,050 1,874
Net cash (used in) provided by financing
activities 4,068 1,434
Foreign currency translation adjustment (52) (3)
Net increase in cash and cash equivalents 130 42
Cash and cash equivalents at the beginning of
the period 333 205
Cash and cash equivalents at the end of the
period $463 $247
Non-cash investing and financing activities
Shares issued to employees as share based
compensation $752 $--
Supplemental disclosures of cash flow
information:
Cash paid for interest expenses $162 $ 47
Cash paid for income tax $-- $--
SOURCE China Shen Zhou Mining & Resources, Inc.
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