BEIJING, Nov. 14, 2012 /PRNewswire-FirstCall/
-- China Shen Zhou Mining & Resources, Inc.
("China Shen Zhou" or the "Company")
(NYSE AMEX: SHZ), a Company engaged in the exploration,
development, mining and processing of fluorite, barite, zinc, lead,
copper, and other nonferrous metals in China, today announced financial results for
the third quarter and first nine months ended September 30, 2012.
Q3 2012 Financial Highlights
- Revenues increased 5.2% year-over-year to $7.4 million;
- Gross profit was $273,000;
- Net loss attributable to the Company was $1.5 million, or $0.04 per basic and diluted share.
Third Quarter Financial Results
Third quarter net sales increased 5.2% year-over-year to
approximately $7.4 million. The
increase in net sales was mainly due to greater sales volume for
fluorite powder and copper concentrate in the third quarter of
2012.
During the third quarter of 2012, sales volume of fluorite
powder reached approximately 15,800 metric tons, an increase of
approximately 7,600 metric tons from the same period of 2011.
Copper concentrate powder sales volume increased to 139 metal tons
from 13 metal tons in the same period of 2011.
Gross profit was $273,000 compared
with $2.9 million in the third
quarter of 2011. Decrease in gross profit was mainly due to lower
selling price of fluorite powder. The fluorite powder sales price
decreased 39% year-over-year to approximately $235 permetric ton in the third quarter of
2012.
Selling expenses were $57,000
compared with $24,000 in the third
quarter 2011. Selling expenses as a percentage of total net sales
was 0.8%, compared with 0.3% in the third quarter of 2011. The
higher selling expenses were mainly due to the company's increased
sales and marketing activities in an effort to win new
customers.
General and administrative ("G&A") expenses in the third
quarter were $2.7 million compared
with $2.1 million in the same period
of 2011. The increase in G&A expenses was due to the increased
administrative expense associated with the newly acquired entities
- Dongsheng Mining, Meilan Mining, and Qianshi Resources. G&A
expenses as a percentage of total net sales increased was 35.6%
compared with 28.6% in the third quarter of 2011.
Total operating expenses in the third quarter of 2012 were
$1.8 million compared with
$2.1 million in the third quarter of
2011. Total operating expenses as a percentage of total net sales
decreased to 24.4% from 29.0% in the third quarter of 2011.
Operating loss for the quarter was $1.55
million compared with an operating income of $805,000 in the third quarter of 2011
Net loss attributable to the Company was $1.5 million, or loss of $0.04 per basic and diluted share, compared with
a net income of $0.68 million, or
income of $0.02 per basic and diluted
share, in the 2011 third quarter.
Nine-Month Financial Results
Net revenues for the first nine months ended September 30, 2012 were approximately
$16.5 million compared with
$18.1 million during the same period
in 2011. The decrease was due to the decline in sales price for
fluorite powder. The fluorite powder sales price for the nine
months ended September 30, 2012 was
approximate $248 per metric ton, a
$91 per metric ton or 27% decrease
compared with the same period of 2011.
Gross profit for the first nine months ended September 30, 2012 was approximately $2.3 million compared with $7.9 million in the same period of 2011. Gross
profit from the fluorite segment was approximately $2,416,000 and $7,483,000 for the first nine months ended
September 30, 2012 and 2011,
respectively. The decrease in gross profit for the fluorite segment
was mainly due to the decline in sales price of fluorite powder.
Gross profit margin was approximately 14% for the nine months ended
September 30, 2012.
Net loss attributable to the Company for the first nine months
ended September 30, 2012 was
approximately $6.68 million compared
to a net loss of $0.80 million for
the same period in 2011. Net loss per basic and diluted share for
the first nine months ended September 30,
2012 was $0.18 as compared
with a net loss per basic and diluted share of $0.03 in the comparable period one year ago.
About China Shen Zhou Mining & Resources, Inc.
China Shen Zhou Mining & Resources, Inc., through its
subsidiaries, is engaged in the exploration, development, mining,
and processing of fluorite, barite 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)
fluorite and barite extraction and processing in the Wuchuan County
of Guizhou province (c) fluorite
and barite extraction and processing in the Yanhe County of Guizhou
province; (d)fluorite extraction and processing in Jingde County,
Anhui Province; (e) zinc/copper/lead processing in Wulatehouqi of
Inner Mongolia; and (f) zinc/copper exploration, mining and
processing in Xinjiang. For more information, please visit
http://www.chinaszmg.com/.
Safe Harbor Statement
This press release may include certain statements that are not
descriptions of historical facts, but are forward-looking
statements. Forward-looking statements can be identified by the use
of forward-looking terminology such as "will", "believes",
"expects" or similar expressions. These forward-looking statements
may also include statements about our proposed discussions related
to our business or growth strategy, which is subject to change.
Such information is based upon expectations of our management that
were reasonable when made but may prove to be incorrect. All of
such assumptions are inherently subject to uncertainties and
contingencies beyond our control and upon assumptions with respect
to future business decisions, which are subject to change. We do
not undertake to update the forward-looking statements contained in
this press release. For a description of the risks and
uncertainties that may cause actual results to differ from the
forward-looking statements contained in this press release, see our
most recent Annual Report filed with the Securities and Exchange
Commission (SEC) on Form 10-K, and our subsequent SEC filings.
Copies of filings made with the SEC are available through the SEC's
electronic data gathering analysis retrieval system (EDGAR) at
http://www.sec.gov .
Contact Information
Min Liu
Investor Relations
Grayling
Tel: +1-646-284-9413
min.liu@grayling.com
- Tables Follow -
|
CHINA SHEN ZHOU
MINING & RESOURCES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
(Amounts in thousands,
except share data)
|
|
|
September 30,
2012
|
|
December 31,
2011
|
|
|
(Unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
2,367
|
|
$
|
5,569
|
|
Notes receivable,
net
|
|
|
535
|
|
|
1,019
|
|
Accounts receivable,
net
|
|
|
1,168
|
|
|
3,332
|
|
Advances to
suppliers
|
|
|
672
|
|
|
1,833
|
|
Acquisition deposit
|
|
|
-
|
|
|
2,359
|
|
Other deposits
|
|
|
209
|
|
|
258
|
|
Due from related
parties
|
|
|
3,201
|
|
|
-
|
|
Inventories
|
|
|
10,611
|
|
|
7,479
|
|
Restricted assets
|
|
|
-
|
|
|
2,536
|
|
Deferred financing
costs
|
|
|
479
|
|
|
-
|
|
Total current
assets
|
|
|
19,242
|
|
|
24,385
|
|
|
|
|
|
|
|
|
Restricted assets
|
|
|
377
|
|
|
175
|
|
Prepayment for vehicle
rent
|
|
|
378
|
|
|
443
|
|
Property, machinery and mining
assets, net
|
|
|
81,331
|
|
|
60,313
|
|
Total assets
|
|
$
|
101,328
|
|
$
|
85,316
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
3,393
|
|
$
|
3,324
|
|
Short term loans
|
|
|
8,862
|
|
|
11,996
|
|
Receipts in advance
|
|
|
4,984
|
|
|
1,528
|
|
Other payables and
accruals
|
|
|
3,999
|
|
|
2,772
|
|
Government loan
|
|
|
1,709
|
|
|
-
|
|
Convertible preferred
stock
|
|
|
1,667
|
|
|
-
|
|
Derivative
liabilities
|
|
|
667
|
|
|
-
|
|
Due to related
parties
|
|
|
226
|
|
|
250
|
|
Taxes payable
|
|
|
2,021
|
|
|
1,877
|
|
Total current
liabilities
|
|
|
27,528
|
|
|
21,747
|
|
|
|
|
|
|
|
|
Long term
loan
|
|
|
1,899
|
|
|
-
|
|
Total
liabilities
|
|
|
29,427
|
|
|
21,747
|
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Convertible preferred
stock ($0.001 par value; 10,000 shares and
0 share authorized as of September 30, 2012 and
December 31,
2011, respectively; 1,666 shares and 0 shares issued
and
outstanding as of September 30, 2012 and December 31,
2011,
respectively)
|
|
|
-
|
|
|
-
|
|
Common stock ($0.001 par
value; 100,000,000 shares and
50,000,000 shares authorized as of September 30, 2012
and
December 31, 2011, respectively; 44,686,758 shares
and
32,285,973 shares issued and outstanding as of
September 30,
2012 and December 31, 2011, respectively)
|
|
|
45
|
|
|
32
|
|
Additional paid-in
capital
|
|
|
65,326
|
|
|
58,425
|
|
Statutory
reserves
|
|
|
1,732
|
|
|
1,732
|
|
Accumulated other
comprehensive income
|
|
|
6,489
|
|
|
6,109
|
|
Accumulated
deficit
|
|
|
(20,021)
|
|
|
(13,344)
|
|
Stockholders' equity -
China Shen Zhou Mining & Resources, Inc. and
Subsidiaries
|
|
|
53,571
|
|
|
52,954
|
|
Noncontrolling
interest
|
|
|
18,330
|
|
|
10,615
|
|
Total stockholders'
equity
|
|
|
71,901
|
|
|
63,569
|
|
Total liabilities and
stockholders' equity
|
|
$
|
101,328
|
|
$
|
85,316
|
|
CHINA SHEN ZHOU
MINING & RESOURCES, INC AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Amounts in thousands,
except per share data)
(Unaudited)
|
|
For the Three Months Ended
|
|
For the Nine
Months Ended
|
|
September 30,
2012
|
|
September 30,
2011
|
|
September 30,
2012
|
|
September 30,
2011
|
|
Net revenue
|
$
|
7,473
|
|
$
|
7,104
|
|
$
|
16,529
|
|
$
|
18,117
|
|
Cost of sales
|
|
7,200
|
|
|
4,242
|
|
|
14,226
|
|
|
10,247
|
|
Gross profit
|
|
273
|
|
|
2,862
|
|
|
2,303
|
|
|
7,870
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and distribution
expenses
|
|
57
|
|
|
24
|
|
|
101
|
|
|
84
|
|
General and
administrative expenses
|
|
2,650
|
|
|
2,055
|
|
|
8,374
|
|
|
7,558
|
|
Provision for doubtful
accounts
|
|
(1,086)
|
|
|
(22)
|
|
|
1,027
|
|
|
(99)
|
|
Impairment provision for
inventories
|
|
206
|
|
|
-
|
|
|
753
|
|
|
-
|
|
Total operating
expenses
|
|
1,827
|
|
|
2,057
|
|
|
10,255
|
|
|
7,543
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) from
operations
|
|
(1,554)
|
|
|
805
|
|
|
(7,952)
|
|
|
327
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(291)
|
|
|
(174)
|
|
|
(1,184)
|
|
|
(520)
|
|
Warrant
modification
|
|
(156)
|
|
|
-
|
|
|
(734)
|
|
|
-
|
|
Fair value change at
derivative liabilities
|
|
710
|
|
|
-
|
|
|
3,716
|
|
|
-
|
|
Amortization of warrants
attached to preferred stock
|
|
(349)
|
|
|
-
|
|
|
(724)
|
|
|
-
|
|
Amortization of deferred
financing cost for preferred stock
|
|
(261)
|
|
|
-
|
|
|
(531)
|
|
|
-
|
|
Preferred stock
dividends
|
|
(39)
|
|
|
-
|
|
|
(100)
|
|
|
-
|
|
Other, net
|
|
(15)
|
|
|
(79)
|
|
|
(150)
|
|
|
(6)
|
|
Total other income
(loss)
|
|
(401)
|
|
|
(253)
|
|
|
293
|
|
|
(526)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations before income taxes
|
|
(1,955)
|
|
|
552
|
|
|
(7,659)
|
|
|
(199)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefits
(expenses)
|
|
(175)
|
|
|
36
|
|
|
(353)
|
|
|
(244)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
|
(2,130)
|
|
|
588
|
|
|
(8,012)
|
|
|
(443)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations of
discontinued component, net of taxes
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(7)
|
|
Loss on disposal of
discontinued subsidiary, net of taxes
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(82)
|
|
Loss from discontinued
operations
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(89)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
(2,130)
|
|
|
588
|
|
|
(8,012)
|
|
|
(532)
|
|
Add (less):
Noncontrolling interests attributable to the
noncontrolling interests
|
|
596
|
|
|
93
|
|
|
1,335
|
|
|
(268)
|
|
Net income (loss) -
attributable to China Shen Zhou Mining & Resources, Inc. and
Subsidiaries
|
|
(1,534)
|
|
|
681
|
|
|
(6,677)
|
|
|
(800)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
13
|
|
|
534
|
|
|
380
|
|
|
1,306
|
|
Comprehensive income
(loss)
|
$
|
(1,521)
|
|
$
|
1,215
|
|
$
|
(6,297)
|
|
$
|
506
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
common share - basic and diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
From continuing
operations
|
$
|
(0.04)
|
|
$
|
0.02
|
|
$
|
(0.18)
|
|
$
|
(0.03)
|
|
From discontinued
operations
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(0.00)
|
|
$
|
(0.04)
|
|
$
|
0.02
|
|
$
|
(0.18)
|
|
$
|
(0.03)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
|
41,396
|
|
|
32,270
|
|
|
37,103
|
|
|
31,060
|
|
CHINA SHEN ZHOU
MINING & RESOURCES, INC AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Amounts in thousands,
except share data)
(Unaudited)
|
|
|
For the Nine
Months Ended
|
|
|
September 30,
2012
|
|
|
September 30,
2011
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net loss before
non-controlling interest
|
|
$
|
(8,012)
|
|
|
$
|
(532)
|
|
Adjustments to reconcile
net loss to net cash used in operating activities:
|
|
|
|
|
|
|
|
|
Loss from operations of
discontinued component, net of income tax benefits
|
|
|
-
|
|
|
|
7
|
|
Loss on sale of
discontinued operations, net of income taxes
|
|
|
-
|
|
|
|
82
|
|
Provision for doubtful
accounts
|
|
|
1,027
|
|
|
|
(99)
|
|
Impairment provision for
inventories
|
|
|
753
|
|
|
|
-
|
|
Warrant
modification
|
|
|
734
|
|
|
|
-
|
|
Amortization of warrants
attached to preferred stock
|
|
|
724
|
|
|
|
-
|
|
Amortization of deferred
financing costs for preferred stock
|
|
|
531
|
|
|
|
-
|
|
Fair value change at
derivative liabilities
|
|
|
(3,716)
|
|
|
|
-
|
|
Depreciation and
amortization
|
|
|
5,408
|
|
|
|
2,838
|
|
Stock-based
compensation
|
|
|
234
|
|
|
|
972
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
(Increase) decrease
in
|
|
|
|
|
|
|
|
|
Notes
receivable
|
|
|
491
|
|
|
|
(992)
|
|
Accounts
receivable
|
|
|
2,599
|
|
|
|
(771)
|
|
Advances to
suppliers
|
|
|
1,509
|
|
|
|
(1,840)
|
|
Other
receivable
|
|
|
(624)
|
|
|
|
-
|
|
Other
deposits
|
|
|
195
|
|
|
|
(1,313)
|
|
Prepayment for vehicle
rent
|
|
|
68
|
|
|
|
-
|
|
Prepayment for office
rent
|
|
|
-
|
|
|
|
82
|
|
Due from related
parties
|
|
|
(3,187)
|
|
|
|
-
|
|
Inventories
|
|
|
(3,398)
|
|
|
|
(578)
|
|
Restricted
assets
|
|
|
2,435
|
|
|
|
(103)
|
|
Increase (decrease)
in
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
(558)
|
|
|
|
(867)
|
|
Receipts in
advance
|
|
|
2,576
|
|
|
|
2,666
|
|
Other payables and
accruals
|
|
|
(4,581)
|
|
|
|
(2,848)
|
|
Taxes payable
|
|
|
(1,016)
|
|
|
|
184
|
|
Net cash used in
operating activities from continuing operations
|
|
|
(5,808)
|
|
|
|
(3,112)
|
|
Net cash used in
operating activities from discontinued operations
|
|
|
-
|
|
|
|
(37)
|
|
Net cash used in operating
activities
|
|
|
(5,808)
|
|
|
|
(3,149)
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Purchases of property,
machinery and mining assets
|
|
|
(2,482)
|
|
|
|
(3,368)
|
|
Acquisition of
subsidiaries, net of cash and cash equivalents acquired
|
|
|
-
|
|
|
|
(3,642)
|
|
Net cash used in investing
activities
|
|
|
(2,482)
|
|
|
|
(7,010)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Due to related
parties
|
|
|
(262)
|
|
|
|
(737)
|
|
Government loan
|
|
|
78
|
|
|
|
-
|
|
Proceeds from issuance of
common stock
|
|
|
-
|
|
|
|
20,000
|
|
Issuance costs of common
stock
|
|
|
-
|
|
|
|
(1,516)
|
|
Proceeds from convertible
preferred stock
|
|
|
5,000
|
|
|
|
-
|
|
Proceeds from
warrants
|
|
|
214
|
|
|
|
-
|
|
Issuance costs of convertible
preferred stock
|
|
|
(495)
|
|
|
|
-
|
|
Repayment of short-term
loans
|
|
|
(15,667)
|
|
|
|
(7,599)
|
|
Proceeds from short-term loans
and long-term loans
|
|
|
16,142
|
|
|
|
6,521
|
|
Net cash provided by financing
activities
|
|
|
5,010
|
|
|
|
16,669
|
|
Foreign currency
translation adjustment
|
|
|
78
|
|
|
|
367
|
|
|
|
|
|
|
|
|
|
Net (decrease) increase
in cash and cash equivalents
|
|
|
(3,202)
|
|
|
|
6,877
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at the beginning of the period
|
|
|
5,569
|
|
|
|
1,545
|
|
Cash and cash
equivalents at the end of the period
|
|
$
|
2,367
|
|
|
$
|
8,422
|
|
|
|
|
|
|
|
|
|
Non-cash investing
and financing activities
|
|
|
|
|
|
|
|
|
Shares issued to Acquire
Xinyi Fluorite
|
|
$
|
-
|
|
|
$
|
9,467
|
|
Additional shares issued
to Acquire Xinyi Fluorite
|
|
$
|
1
|
|
|
$
|
-
|
|
Shares issued as
acquisition consideration for Dongsheng Mining, Meilan Mining and
Qianshi Resources
|
|
$
|
5,676
|
|
|
$
|
-
|
|
Shares issued as the
installment shares to redeem a third of the convertible preferred
stock
|
|
$
|
3,334
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
Supplemental disclosures
of cash flow information:
|
|
|
|
|
|
|
|
|
Cash paid for interest
expenses
|
|
$
|
1,169
|
|
|
$
|
424
|
|
Cash paid for income
tax
|
|
$
|
849
|
|
|
$
|
54
|
SOURCE China Shen Zhou Mining & Resources, Inc.