(All figures are in U.S. dollars)
BEIJING, April 1 /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: 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
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 $-- $--
