BEIJING, Dec. 3, 2010 /PRNewswire-Asia-FirstCall/ -- China Shen Zhou Mining & Resources, Inc. (NYSE Amex: SHZ) ("China Shen Zhou", or the "Company"), a Company engaged in the exploration, development, mining and processing of fluorite, zinc, lead, copper, and other nonferrous metals in China, today announced that management has set revenue guidance for the 2010 year, and both operational and financial guidance for the next year to end December 31, 2011.
For the 2010 year, net revenues are expected to grow organically to approximately $14.5 million compared with $4.2 million in 2009.
For 2011, China Shen Zhou expects production to reach approximately 60,000 metric tons of fluorite powder and approximately 40,000 metric tons of fluorite lumps. Nonferrous metal production should reach approximately 15,000 metric tons of zinc concentrate (equal to 7,000 metric tons of zinc metal) and nearly 1,500 metric tons of copper concentrate (equal to 280 metric tons of copper metal) in the 2011 year. In the first nine-months of 2010, the Company sold 8,800 metric tons of fluorite powder, 20,356 metric tons of fluorite lumps, 5,400 metric tons of zinc concentrate and 700 metric tons of copper concentrate.
For the year to end December 31, 2011, net revenues are expected to approximate $38.0 million, a 164% increase compared with the 2010 estimated net revenues of $14.5 million. All this anticipated growth is organic from the current product portfolio. Net income for the 2011 year is estimated to reach approximately $11.0 million.
Management set the operating plan for 2011 with a specific strategy to increase nonferrous exploration to acquire future revenue producing assets in this mineral-rich area. The Xingzhen Mining's exploration area has been designated as a key exploration area in western China's development strategy. The Company has continuously increased its investment in nonferrous metals exploration over the past few years and made significant progress in 2010. Management expects to accelerate these exploration activities going forward.
Another goal for 2011 is to enhance disclosure of the Company's assets. The Company has engaged SRK Consulting, a leading global assessment firm for the international mining industry to assess the Company's assets. It has already begun appraising the fluorite reserves. China Shen Zhou believes a full resource assessment of its explorations and assets can be completed and reported in compliance with the disclosure standards of U.S.- listed companies no later than the second quarter of 2011.
Ms. Yu Xiaojing, the CEO of China Shen Zhou, commented, "The outlook for 2011 is very promising as both nonferrous metals and fluorite are exhibiting strong organic growth. The demand for our nonferrous metals is growing and we are actively exploring for and pursuing new assets to help us become a much larger and more profitable company. Fluorite prices are rising partially due to changing government regulations resulting in structural changes in the fluorite industry."
SKR Consulting is an independent, international consulting practice that provides focused advice and solutions to clients. For mining projects, SRK offers services from exploration through feasibility, mine planning, and production to mine closure. The Group's independence is ensured by the fact that it holds no equity in any project, and with ownership primarily by staff. SKR is a leading international practice in due diligence, feasibility studies and confidential internal reviews. Formed in 1974, SRK now employs more than 1000 professionals internationally in 43 permanent offices on 6 continents.
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)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.
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SOURCE China Shen Zhou Mining & Resources, Inc.