HONG KONG, March 31, 2011 /PRNewswire-Asia/ --Gold mining and processing company China Precious Metal Resources Holdings Co., Ltd. ("CPM", HKEx: 1194) announces that for the year ended 31 December 2010, turnover from continuing operations increased approximately 768% year-on-year to HK$168,154,000 (2009: 19,370,000). Profit attributable to equity holders of the Company from continuing operations was approximately HK$56,975,000 (2009: Loss of HK$3,206,000), with earnings per share amounting to HK0.9 cent (2009: Loss per share of HK2.7 cents). The Group did not declare a final dividend.
CPM Chief Executive Officer and Executive Director Dr. Dai Xiaobing noted: "I am pleased to report that during the year, the Group has completed a number of major acquisitions of gold mining assets, over-accomplishing our target of gold resource reserves of 100 tonnes. Looking to the future, we will continue to identify high quality gold mining projects at peripheral blocks close to our three existing production bases. We aim to increase our gold reserves and resources to approximately 300 tonnes by 2012, as part of our mission of becoming one of the best performed gold mining enterprises listed in Hong Kong."
The Group has successfully developed gold mining assets strategically in three major fold belts in the PRC. As at 31 December 2010, the Group owns and controls total gold reserves and resources of 152 tonnes in Inner Monogolia, Yunan and Henan, and holds a 12.55% interest in Norton Gold Fields Limited, a gold mining company listed in Australia. During the year, the Group's turnover from the gold mining business was approximately HK$168,154,000, with a gross profit of HK$73,780,000.
The Group recorded an increase in turnover and succeeded to achieve a turnaround, primarily attributable to the first full-year contributions from Chifeng gold mining business in Inner Mongolia, and the contributions of newly acquired Mojiang Gold Mine in Yunan and Kangshan Gold Mine in Henan since the fourth quarter.
The Group has established production bases in three metallogenic belts of gold in the PRC. With its outstanding management and technical team, the Group has succeeded in achieving beneficial returns from its businesses within a short period of operation, helping it to gain the support and assistance of local governments.
Dr. Dai added: "We expect that the demand for gold will remain robust in the short-to-medium-run, which will underpin the Group's further enhancement of earnings in the years ahead. The production expansion and merger and acquisition plans undertaken by the Group in the second half of the year have made satisfactory progress. Given the current scale of gold reserves, it is anticipated that both the output and the profitability of the Group will strengthen substantially in the coming year."
As at 31 December 2010, the Group's cash and bank deposits were HK$98,117,000 (31 December 2009: HK$189,648,000).
Financial Highlights
| Year ended 31 December | ||
| 2010 | 2009 | |
| HK$'000 | HK$'000 | |
| (Restated) | ||
| Continuing operations | ||
| Turnover | 168,154 | 19,370 |
| Gross profit | 73,780 | 12,223 |
| Profit from operations | 85,240 | 193 |
| Profit/(Loss) from continuing operations | 56,975 | (3,206) |
| Discontinued operations | ||
| Loss from discontinued operations | (35,045) | (25,984) |
| Profit/(Loss) for the year | 21,930 | (29,190) |
| Basic profit/(loss) per share | HK0.9 cent | HK(2.7) cents |
About CPM
China Precious Metal Resources Holdings Co., Ltd. (HKEx: 1194) is a cost-efficient high-growth gold producer with a strong record of building reserves and resources through acquisition. The Company owns gold mines in China's three well endowed fold belts, including Chifeng Fold Belt in Inner Mongolia, Xiaoqinling Fold Belt in Henan and Ailaoshan Fold Belt in Yunnan. The Group also holds interests in Norton Gold Fields Limited (ASX: NGF), a company incorporated in Australia.
Media Contact:
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Fax: +852-2511-8238
Email: cpm@t6pr.com
