CITY OF INDUSTRY, Calif., March 14, 2011 /PRNewswire-FirstCall/ -- US China Mining Group, Inc., ("US China Mining") (OTC Bulletin Board: SGZH) a Chinese leader in coal production and exploration in the People's Republic of China, today announced preliminary financial guidance for the year ended 2011, ending December 31. The Company expects the following:
Fiscal Year Ended
December 31, 2011
Net Revenue ($ millions)
% change YOY
N/A (new business)
*Represents growth compared to 2010 revenue forecast
Management made the following assumptions to arrive at its preliminary forecasts:
Projected Volume (MT)
Projected Avg. Sales Price/ton
"Our 2011 financial forecast reflects our confidence in executing our growth strategy," started Mr. Hongwen Li, President of US China Mining Group. "We expect strong organic growth from our coal brokerage and coal production business, which will benefit from completing the mining equipment upgrade at our Xing An mines by February 2011. Once mining production and our coal sorting operations both reach full production by May 2011, we anticipate revenues and profits to accelerate."
"With strong cash flows, minimal capital expenditure needs, $40 million of cash on our balance as of September 30, 2010 and an additional $15 million from our private placement in the fourth quarter of 2010, we are supremely positioned to make strategic acquisitions," continued Mr. Li. "We are currently evaluating several attractive acquisition candidates both domestically and in the U.S. Based on our preliminary due diligence and progress to date, we expect to complete at least two acquisitions during 2011. We have not included any contribution from acquisitions in our 2011 forecast, which would be additive to our overall growth rate."
About US China Mining Group
US China Mining Group is a company engaged in coal production and sales by exploring, assembling, assessing, permitting, developing and mining coal properties in the People's Republic of China ("PRC"). After obtaining permits from the Heilongjiang Province National Land and Resources Administration Bureau and the Heilongjiang Economic and Trade Commission, we extract coal from properties to which we have the right to mine capped amounts of coal, and then sell most of the coal on a per metric ton ("ton") basis in cash on delivery, primarily to power plants, cement factories, wholesalers and individuals for home heating. We do not own the coal mines, but have mining rights to extract a capped amount of coal from a mine as determined by government authorized mining engineers and approved by the Heilongjiang Department of Land and Resources. Our business consists of the operations of Tong Gong coal mine in northern PRC, located approximately 175 km southwest of the city of Heihe in the Heilongjiang Province and the Hong Yuan and Sheng Yu coal mines located in the city of Mohe in Heilongjiang Province.
Safe Harbor Statement
This press release contains certain statements that may include 'forward-looking statements' as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are often identified by the use of forward-looking terminology such as "believe, expect, anticipate, optimistic, intend, will" or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of risks and factors, including those discussed in the Company's periodic reports that are filed with and available from the Securities and Exchange Commission. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risks and other factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
SOURCE US China Mining Group, Inc.