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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