China Shen Zhou Mining & Resources, Inc. Announces Financial Results for the First Quarter Ended March 31, 2010
(All figures are in U.S. dollars)
![](https://capedge.com/proxy/8-K/0001144204-10-027828/logo.jpg)
Press Release Source: China Shen Zhou Mining & Resources, Inc. On Friday May 14, 2010, 8:00 am EDT
BEIJING, May 14 /PRNewswire-Asia-FirstCall/ -- China Shen Zhou Mining & Resources, Inc. (NYSE Amex: 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 first quarter ended March 31, 2010.
First Quarter 2010 Highlights:
Total net revenues increased by 50% in the first quarter of 2010 as compared to the same period in 2009 to US$0.9 million from US$0.6 million.
Net loss attributable to the Company and subsidiaries decreased by 66.7% in the first quarter of 2010 as compared to the same period in 2009 to US$0.8 million from US$2.4 million.
Net Loss from operations decreased by 23.1% in the first quarter of 2010 as compared to the same period in 2009 to US$1 million from US$1.3 million.
Basic and diluted net losses per share from continuing operations was US$0.02 in the first quarter of 2010 and US$0.10 as compared to the first quarter of 2009.
"Although we had net loss in the first quarter of 2010, the net loss number was significantly less as compared with the same period of 2009," said Ms. Xiaojing Yu, the Chairwoman and CEO of the Company. "The production situation of our subsidiaries met expectations and the price of fluorite ore and nonferrous metals were steady. Thus we are very confident in carrying out the operational plan of the full year 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: 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 Follow
CHINA SHEN ZHOU MINING & RESOURCES, INC AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)
March 31, | December 31, | |||||||
2010 | 2009 | |||||||
(Unaudited) | (Audited) | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 869 | $ | 333 | ||||
Accounts receivable, net | 272 | 302 | ||||||
Other deposits and prepayments, net | 1,080 | 855 | ||||||
Inventories | 5,433 | 3,721 | ||||||
Restricted assets | 732 | 740 | ||||||
Total current assets | 8,386 | 5,951 | ||||||
Prepayment for office rent | 230 | 280 | ||||||
Available for sale investment | 146 | 146 | ||||||
Property, machinery and mining assets, net | 34,359 | 34,902 | ||||||
Total assets | $ | 43,121 | $ | 41,279 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 4,546 | $ | 4,694 | ||||
Short term bank loans | 3,160 | 3,603 | ||||||
Other payables and accruals | 9,181 | 6,667 | ||||||
Taxes payable | 351 | 333 | ||||||
Total current liabilities | 17,238 | 15,297 | ||||||
Due to related parties | 2,281 | 2,297 | ||||||
Total liabilities | 19,519 | 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 March 31, 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 | 3,819 | 3,839 | ||||||
Accumulated deficit | (11,153 | ) | (10,342 | ) | ||||
Stockholders' equity - China Shen Zhou Mining & Resources, Inc. and Subsidiaries | 23,636 | 23,714 | ||||||
Noncontrolling interest | (34 | ) | (29 | ) | ||||
Total stockholders' equity | 23,602 | 23,685 | ||||||
Total liabilities and stockholders' equity | $ | 43,121 | $ | 41,279 |
CHINA SHEN ZHOU MINING & RESOURCES, INC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Amounts in thousands, except per share data)
For the Three Months Ended | ||||||||
March 31, | ||||||||
2010 | 2009 | |||||||
(Unaudited) | (Unaudited) | |||||||
Net revenue | $ | 921 | $ | 619 | ||||
Cost of sales | 848 | 557 | ||||||
Gross profit | 73 | 62 | ||||||
Operating expenses: | ||||||||
Selling and distribution expenses | 13 | 4 | ||||||
General and administrative expenses | 1,078 | 1,392 | ||||||
Total operating expenses | 1,091 | 1,396 | ||||||
Net loss from operations | (1,018 | ) | (1,334 | ) | ||||
Other income (expense): | ||||||||
Interest expense | (86 | ) | (962 | ) | ||||
Other, net | 288 | 96 | ||||||
Total other income (loss) | 202 | (866 | ) | |||||
Loss from continuing operations before income taxes | (816 | ) | (2,200 | ) | ||||
Income tax expenses | - | - | ||||||
Loss from continuing operations | (816 | ) | (2,200 | ) | ||||
Discontinued operations : | ||||||||
Loss from operations of discontinued component, net of taxes | - | (158 | ) | |||||
Loss from discontinued operations | - | (158 | ) | |||||
Net loss | (816 | ) | (2,358 | ) | ||||
Less: Noncontrolling interests attributable to the noncontrolling interests | 5 | (22 | ) | |||||
Net loss - attributable to China Shen Zhou Mining & Resources, Inc. and Subsidiaries | (811 | ) | (2,380 | ) | ||||
Other comprehensive income: | ||||||||
Foreign currency translation adjustments | (20 | ) | 191 | |||||
Comprehensive loss | $ | (831 | ) | $ | (2,189 | ) | ||
Net loss per common share - basic and diluted | ||||||||
From continuing operations | (0.02 | ) | (0.10 | ) | ||||
From discontinued operations | - | (0.01 | ) | |||||
$ | (0.02 | ) | $ | (0.11 | ) | |||
Weighted average common shares outstanding | ||||||||
- Basic and Diluted | 27,762 | 22,215 |
CHINA SHEN ZHOU MINING & RESOURCES, INC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands, except share data)
For the Three Months Ended | ||||||||
March 31, | ||||||||
2010 | 2009 | |||||||
(Unaudited) | (Unaudited) | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (811 | ) | $ | (2,380 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
Loss from operations of discontinued component, net of income tax benefits | - | 158 | ||||||
Depreciation and amortization | 695 | 1,051 | ||||||
Fair value adjustment of warrants | - | 21 | ||||||
Accrual of coupon interests and accreted principal | - | 386 | ||||||
Amortization of deferred financing costs | - | 401 | ||||||
Amortization of debt issuance costs | - | 106 | ||||||
Noncontrolling interests | (5 | ) | (22 | ) | ||||
Forgiveness of payroll payables | (300 | ) | - | |||||
Changes in operating assets and liabilities: | ||||||||
(Increase) decrease in - | ||||||||
Accounts receivable | 30 | 195 | ||||||
Other deposits and prepayments | (226 | ) | (88 | ) | ||||
Prepayment for office rent | 50 | 10 | ||||||
Inventories | (1,717 | ) | 397 | |||||
Restricted assets | 7 | - | ||||||
Increase (decrease) in - | - | - | ||||||
Accounts payable | (142 | ) | (203 | ) | ||||
Other payables and accruals | 3,574 | 230 | ||||||
Taxes payable | 18 | (147 | ) | |||||
Net cash provided by operating activities from continuing operations | 1,173 | 115 | ||||||
Net cash provided by operating activities from discontinued operations | - | 66 | ||||||
Net cash provided by operating activities | 1,173 | 181 | ||||||
Cash flows from investing activities: | ||||||||
Purchases of property, machinery and mining assets | $ | (208 | ) | $ | (31 | ) | ||
Net cash used in investing activities from continuing operations | (208 | ) | (31 | ) | ||||
Net cash used in investing activities | (208 | ) | (31 | ) | ||||
Cash flows from financing activities: | ||||||||
Due to related parties | $ | (14 | ) | $ | (117 | ) | ||
Repayment at short-term bank loans | (731 | ) | - | |||||
Proceeds from short-term bank loans | 293 | - | ||||||
Net cash used in financing activities | (452 | ) | (117 | ) | ||||
Foreign currency translation adjustment | 23 | 52 | ||||||
Net decrease in cash and cash equivalents | 536 | 85 | ||||||
Cash and cash equivalents at the beginning of the period | 333 | 205 | ||||||
Cash and cash equivalents at the end of the period | $ | 869 | $ | 290 | ||||
Non-cash investing and financing activities | ||||||||
Shares issued to employees as share based compensation | $ | 753 | - | |||||
Supplemental disclosures of cash flow information: | ||||||||
Cash paid for interest expenses | $ | 74 | $ | 47 | ||||
Cash paid for income tax | $ | - | $ | - |