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China Shen Zhou Mining & Resources, Inc. Announces Financial Results for the Third Quarter Ended September 30, 2010

(All figures are in U.S. dollars)


BEIJING, Nov. 12, 2010 /PRNewswire-Asia-FirstCall/ -- China Shen Zhou Mining & Resources, Inc. ("China Shen Zhou", or the "Company"), a 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 third quarter ended September 30, 2010.

Third Quarter 2010 Highlights:

Net revenues increased by 110% in the third quarter of 2010 as compared to the same period in 2009 to US $3.62 million from US $1.72 million.

Gross profit increased by approximately 600% in the third quarter of 2010 as compared to the same period in 2009 to US$1.74 million from US$0.25 million.

Gross margin was 48% as compared to 14% in the same period of the prior fiscal year.

Net income attributable to the Company and subsidiaries increased in the third quarter of 2010 to US$0.52 million as compared to a net loss of US$2.15 million in the same period in 2009.

Basic and diluted net income (loss) per share from continuing operations was US$0.02 in the third quarter of 2010 and minus US$0.08 in the third quarter of 2009.

"In the third quarter, we achieved a significant change in operations. Our major processing plants have begun operating at full scale in the third quarter of this year. We believe that this is a new beginning for our business since September 2008 after the crisis. Along with the increase in the price of our final products, this situation brings a positive change to our financial results. We expect that such full-scale operations in our plants will continue to be carried out in 2011." said Ms. Xiaojing Yu, the Chairwoman and CEO of the Company.

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


Cell: 13146358911


Email: investors@chinaszky.com


Web:  http://www.chinaszmg.com




In the U.S.:


David Elias


Investor Relations


DME Capital LLC


Tel: +1-516-967-0205


Email: dave@dmecapital.com





Financial Tables to Follow

HINA SHEN ZHOU MINING & RESOURCES, INC AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share data)



September 30,

2010



December 31,

2009




(Unaudited)



(Audited)



ASSETS














Current assets:







Cash and cash equivalents

$

1,497



$

333



Accounts receivable, net


266




302



Other deposits and prepayments, net


1,189




855



Inventories


7,950




3,721



Restricted assets


8




740



Total current assets


10,910




5,951












Prepayment for office rent


133




280



Available for sale investment


149




146



Property, machinery and mining assets, net


34,699




34,902



Total assets

$

45,891



$

41,279












LIABILITIES AND STOCKHOLDERS' EQUITY


















Current liabilities:









Accounts payable

$

2,885



$

4,694



Short term loans


10,792




3,603



Other payables and accruals


5,283




6,667



Taxes payable


655




333



Total current liabilities


19,615




15,297












Due to related parties


2,322




2,297



Total liabilities


21,937




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 September 30, 2010 and December 31, 2009 respectively)


28




27



Additional paid-in capital


29,270




28,518



Statutory reserves


1,672




1,672



Accumulated other comprehensive income


4,180




3,839



Accumulated deficit


(11,144)




(10,342)



Stockholders' equity - China Shen Zhou Mining & Resources, Inc. and Subsidiaries


24,006




23,714



Noncontrolling interest


(52)




(29)



Total stockholders' equity


23,954




23,685



Total liabilities and stockholders' equity

$

45,891



$

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 Nine Months Ended




September 30,

2010



September 30,

2009



September 30,

2010



September 30,

2009




(Unaudited)



(Unaudited)



(Unaudited)



(Unaudited)



Net revenue

$

3,619



$

1,715



$

6,722



$

3,060



Cost of sales


1,878




1,469




4,455




2,593



Gross profit


1,741




246




2,267




467




















Operating expenses:

















Selling and distribution expenses


16




52




67




70



General and administrative expenses


1,131




982




3,043




3,166



Total operating expenses


1,147




1,034




3,110




3,236




















Net income (loss) from operations


594




(788)




(843)




(2,769)




















Other income (expense):

















Interest expense


(193)




(936)




(387)




(2,893)



Other, net


106




(8)




406




109



Total other income (loss)


(87)




(944)




19




(2,784)




















Income (loss) from continuing operations before income taxes


507




(1,732)




(824)




(5,553)




















Income tax expenses


-




-




-




-




















Income (loss) from continuing operations


507




(1,732)




(824)




(5,553)




















Discontinued operations :

















Loss from operations of discontinued component, net of taxes


-




(414)




-




(660)



Loss from discontinued operations


-




(414)




-




(660)




















Net income (loss)


507




(2,146)




(824)




(6,213)



Less: Noncontrolling interests attributable to the noncontrolling interests


8




-




22




22



Net income (loss) - attributable to China Shen Zhou Mining & Resources, Inc. and Subsidiaries


515




(2,146)




(802)




(6,191)




















Other comprehensive income:

















Foreign currency translation adjustments


295




25




341




216



Comprehensive  income (loss)

$

810



$

(2,121)



$

(461)



$

(5,975)




















Net income (loss) per common share – basic and diluted

















From continuing operations


0.02




(0.08)




(0.02




(0.25)



From discontinued operations


-




(0.02)




-




(0.03)




$

0.02



$

(0.10)



$

(0.02



$

(0.28)




















Weighted average common shares outstanding

















- Basic and Diluted


27,975




22,215




27,878




22,215
























CHINA SHEN ZHOU MINING & RESOURCES, INC AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands, except share data)



For the Nine Months Ended 

September 30,




2010



2009




(Unaudited)



(Unaudited)



Cash flows from operating activities:







Net loss

$

(802)



$

(6,191)



Adjustments to reconcile net loss to net cash used in operating activities:









Loss from operations of discontinued component, net of income tax benefits


-




660



Depreciation and amortization


2,226




1,865



Fair value adjustment of warrants


-




17



Accrual of coupon interests and accreted principal


-




1,169



Amortization of deferred financing costs


-




1,207



Amortization of debt issuance costs


-




318



Noncontrolling interests


(22)




(22)



Forgiveness of payroll payables


(300)




-



Changes in operating assets and liabilities:









(Increase) decrease in -









Accounts receivable


41




(61)



Other deposits and prepayments


(317)




(174)



Prepayment for office rent


147




152



Inventories


(4,157)




(615)



Restricted assets


746




(733)



Increase (decrease) in -









Accounts payable


(1,900)




973



Other payables and accruals


(460)




1,001



Taxes payable


316




(94)



Net cash provided by (used in) operating activities from continuing operations


(4,482)




(528)



Net cash provided by (used in) operating activities from discontinued operations


-




1



Net cash used in operating activities


(4,482)




(527)



Cash flows from investing activities:









Purchases of property, machinery and mining assets


(1,374)




(752)



Sales of property, machinery and mining assets


28




-



Net cash used in investing activities from continuing operations


(1,346)




(752)



Net cash provided by disposal of discontinued operations


-




-



Net cash used in investing activities


(1,346)




(752)



Cash flows from financing activities:









Due to related parties


(20)




(620)



Repayment at short-term loans


(3,464)




-



Proceeds from short-term loans


10,583




1,846



Net cash provided by financing activities


7,099




1,226



Foreign currency translation adjustment


(107)




(5)












Net increase in cash and cash equivalents


1,164




(58)












Cash and cash equivalents at the beginning of the period


333




205



Cash and cash equivalents at the end of the period

$

1,497



$

147












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

$

285



$

166



Cash paid for income tax

$

-



$

-

















CONTACT: In China -- Fulun Song, Office of the Board of Directors of China Shen Zhou Mining & Resources, Inc., +86-10-8890-9976, or fax, +86-10-8890-6927, or cell, +86-131-4635-8911, or investors@chinaszky.com; or In the U.S.-- David Elias, Investor Relations of DME Capital LLC, +1-516-967-0205, or dave@dmecapital.com

Source: China Shenzhou Mining & Resources, Inc
Related Stocks:
AMEX:SHZ
Keywords: Mining/Metals
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