China Shen Zhou Mining & Resources, Inc. Announces Financial Results for the Fourth Quarter and Fiscal Year Ended December 31, 2009
(All figures are in U.S. dollars)
BEIJING, March 31 /PRNewswire-Asia-FirstCall/ -- China Shen Zhou Mining & Resources, Inc. (NYSE: 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 fourth quarter and fiscal year ended December 31, 2009.
China Shen Zhou will file its annual report on Form 10-K for the fiscal year ended December 31, 2009 on March 31, 2010.
Fourth Quarter 2009 Highlights: -- Net sales were $1.1 million, representing a decrease of approximately $1.2 million as compared to $2.3 million for the fourth quarter in 2008. -- Gross profit was -$0.21 million, representing a decrease of approximately 132% as compared to $0.66 million of the fourth quarter in 2008. -- Gain of convertible debt cancellation was $14.0 million. The transaction of redemption of convertible notes was closed in December 2009. -- Net income for the fourth quarter in 2009 was $9.2 million, representing an increase of approximately $14 million as compared to net loss of $4.6 million for the fourth quarter in 2008. Full Year 2009 Highlights: -- Net sales were $4.2 million, representing a decrease of approximately $2.9 million as compared to $7.1 million for fiscal year 2008. -- Gross profit was $0.26 million, representing a decrease of approximately 80% as compared to $1.31 million of fiscal year 2008. -- Net income for 2009 was $3.0 million, or $0.13 per diluted share, representing an increase of approximately 15.1 million as compared to net loss of $12.1 million, or -$0.55 per diluted share, for the fiscal year 2008.
"Though the commodities market is still terrible at this moment, we have many reasons to be optimistic in 2010. For example, the price of non-ferrous metals has risen. Coupled with the extreme scarcity and non-renewable nature of fluorite, the new policy of restricting the excessive exploitation of fluorite mineral resources and higher entrance limitation of fluorite enterprises from China's government will stimulate the increase of fluorite price. As the world economy had passed over the most difficult time in 2009, the demand for fluorite and non-ferrous metals will increase gradually in 2010," said Ms. Xiaojing Yu, China Shen Zhou's Chairwoman and CEO. "We are very encouraged by the news from Xiangzhen Mining about approval of RMB 50 million yuan of credit from a local bank in Inner Mongolia on March 30, 2010. We believe we will have a better operational performance in 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. In addition, AFMG owns 100% of Kichi-Chaarat Closed Joint Stock Company, whose major assets include a copper-gold mine located in the Kuru-Tegerek region of western Kyrgyzstan.
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) December 31, 2009 2008 ASSETS Current assets: Cash and cash equivalents $333 $200 Accounts receivable, net 302 561 Other deposits and prepayments, net 855 1,111 Inventories 3,721 2,958 Restricted assets 740 -- Assets - Discontinued operations -- 10,915 Total current assets 5,951 15,745 Prepayment for office rent 280 505 Available for sale investment 146 146 Property, machinery and mining assets, net 34,902 36,862 Deferred debt issuance costs -- 1,755 Total assets $41,279 $55,013 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $4,694 $3,470 Fair value of detachable warrants liability -- 33 Short term bank loans 3,603 1,756 Other payables and accruals 6,667 4,639 Taxes payable 133 415 Due to related parties -- 2,490 Liabilities - Discontinued operations -- 328 Total current liabilities 15,097 13,131 Due to related parties 2,297 -- Convertible notes payable -- 24,251 Total liabilities 17,394 37,382 STOCKHOLDERS' EQUITY: Common Stock ($0.001 par value; 50,000,000 shares authorized; 27,214,514 shares and 22,214,514 shares issued and outstanding as of December 31, 2009 and 2008, respectively $27 $22 Additional paid-in capital 28,518 25,251 PRC statutory reserves 1,672 1,672 Accumulated other comprehensive income 3,839 4,020 Accumulated deficit (10,142) (13,356) Stockholders' equity - China Shen Zhou Mining & Resources, Inc. and Subsidiaries 23,914 17,609 Noncontrolling interest (29) 22 Total stockholders' equity 23,885 17,631 Total liabilities and stockholders' equity $41,279 $55,013 CHINA SHEN ZHOU MINING & RESOURCES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except per share data) For the Year Ended December 31, 2009 2008 Net revenue $4,192 $7,137 Cost of sales 3,934 5,830 Gross profit 258 1,307 Operating expenses: Selling and distribution expenses 94 146 General and administrative expenses 5,853 8,213 Total operating expenses 5,947 8,359 Net income (loss) from operations (5,689) (7,052) Other income (expense): Interest expense (2,989) (2,744) Gain on convertible debt extinguishment 13,959 -- Impairment of goodwill -- (1,127) Other, net 98 380 Total other income (loss) 11,068 (3,491) Income (loss) from continuing operations before income taxes 5,379 (10,543) Income tax expenses -- (544) Income (loss) from continuing operations 5,379 (11,087) Discontinued operation: Loss from operations of discontinued component, net of taxes (740) (1,192) Loss on disposal of discontinued subsidiary, net of taxes (1,476) -- Loss from discontinued operations (2,216) (1,192) Net income (loss) 3,163 (12,279) Less: Noncontrolling interests attributable to the noncontrolling interests 51 130 Net loss - attributable to China Shen Zhou Mining & Resources, Inc. and Subsidiaries 3,214 (12,149) Other comprehensive income (loss): Foreign currency translation adjustments (181) 1,908 Comprehensive income (loss) $3,033 $(10,241) Net income (loss) per common share - basic and diluted From continuing operations $0.21 $(0.50) From discontinued operations (0.09) (0.05) $0.12 $(0.55) Weighted average common shares outstanding - Basic and Diluted 24,743 22,215 CHINA SHEN ZHOU MINING & RESOURCES, INC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands) For the year Ended December 31 2009 2008 Cash flows from operating activities: Net loss $3,214 $(12,149) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Loss from operations of discontinued component, net of income tax benefits 740 1,192 Write off deferred tax abilities of discontinued operations -- (1,201) Loss on sale of discontinued operations, net of income taxes 1,476 -- Gain on sale of repurchase convertible notes (13,959) -- Provision for doubtful accounts -- (2) Provision for deferred tax asset -- 685 Impairment provision for inventories 34 -- Impairment of goodwill -- 1,127 Depreciation and amortization 2,514 4,343 Write off of deferred tax abilities -- -- Loss from investments -- -- Deferred income tax benefits -- (178) Fair value adjustment of warrants (33) (1,067) Loss on disposal of property, machinery and mining assets 15 -- Accrual of coupon interests and accreted principal 1,169 1,489 Amortization of deferred financing costs 1,207 1,576 Amortization of debt issuance costs 318 415 Noncontrolling interests (51) (122) Changes in operating assets and liabilities: (Increase) decrease in - Accounts receivable 259 1,922 Other deposits and prepayments 256 40 Prepayment for office rent 225 (505) Inventories (797) (1,319) Due from related companies -- (625) Restricted assets (740) -- Increase (decrease) in - Accounts payable 1,224 989 Other payables and accruals 2,028 1,200 Taxes payable (282) 167 Net cash used in operating activities from continuing operations (1,183) (2,023) Net cash used in operating activities from discontinued operations (33) (213) Net cash used in operating activities (1,216) (2,236) Cash flows from investing activities: Purchases of property, machinery and mining assets $(2,520) $(1,894) Sales of property, machinery and mining assets 1,987 -- Net cash used in investing activities from continuing operations (533) (1,894) Net cash provided by disposal of discontinued operations 8,200 -- Net cash provided by (used in) investing activities 7,667 (1,894) Cash flows from financing activities: Repayment at the convertible notes (8,000) -- Due to related parties (193) 604 Repayment at short-term bank loans (2,518) Proceeds from short-term bank loans $4,362 $442 Net cash (used in) provided by financing activities (6,349) 1,046 Foreign currency translation adjustment 31 335 Net decrease in cash and cash equivalents 133 (2,749) Cash and cash equivalents at the beginning of the period 200 2,949 Cash and cash equivalents at the end of the period $333 $200 Non-cash investing and financing activities (None) Supplemental disclosures of cash flow information: Cash paid for interest expenses $241 $254 Cash paid for income tax $-- $--
SOURCE China Shen Zhou Mining & Resources, Inc.
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article