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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