Gulf Resources provides update on estimated 3rd and 4th Quarter Bromine and Crude Salt Sales and Profits
September 29 2020 - 8:30AM
Gulf Resources, Inc. (Nasdaq: GURE) ("Gulf Resources", “we,”
or the "Company"), a leading manufacturer of bromine, crude salt
and specialty chemical products in China, today provides update on
3rd and 4th Quarter Bromine and Crude Salt Sales and Profits.
Gulf Resources has continued to ramp up production of bromine
and crude salt in the third quarter. We currently estimate sales of
bromine in terms of tonne will increase 60-65% over that of the
second quarter. Each of the months has shown an increase, with the
greatest increase occurring in September 2020.
At the present time, bromine is priced at approximately $4,441
per metric tonne, compared to $3,672 per metric tonne at the end of
the second quarter, representing an increase of 20.9%.
Crude salt sales are expected to increase about 45% in the third
quarter. Sales in the third quarter are estimated to be between
75,000 and 80,000 metric tonnes, compared to 53,532 in the second
quarter.
While the company does not make projections, based on the
expected sales level and current pricing, these businesses should
operate at break-even closely. The company is very pleased with the
continuing progress being made in its bromine and crude salt
facilities.
The company expects that October 2020 will also be a good month
in terms of bromine sales. November sales also expected to be
strong, although it may be lower than October.
December is likely to be seasonally weaker as customers reduce
purchases of raw materials in advance of the Chinese New Year. As a
reference, in 2015 and 2016, the third quarter contributed
approximately 29.3% of bromine tonnes sold compared to 18.5% in the
fourth quarter. In these two years, bromine sales in tonnes were
approximately 58.6% higher in the third quarter than in the fourth
quarter.
In addition, crude salt production can be negatively impacted by
cold weather. There is no way to predict the weather in December.
In 2016, when the weather was mild, we sold more tonnes of crude
salt than in any other quarter of the year. However, at this point
in time, it is impossible to predict the weather for November and
December.
Given our assumptions that weather could impact crude salt sales
and that customers are likely to reduce bromine purchases prior to
the Chinese New Year, the company still believes it may operate are
break-even closely.
The company plans to report 2020 third quarter results around
mid-November, 2020.
About Gulf Resources, Inc.
Gulf Resources, Inc. operates through three wholly-owned
subsidiaries, Shouguang City Haoyuan Chemical Company Limited
("SCHC"), Shouguang Yuxin Chemical Industry Co., Limited ("SYCI"),
and Daying County Haoyuan Chemical Company Limited (“DCHC”). The
Company believes that it is one of the largest producers of bromine
in China. Elemental Bromine is used to manufacture a wide variety
of compounds utilized in industry and agriculture. Through SYCI,
the Company manufactures chemical products utilized in a variety of
applications, including oil and gas field explorations and
papermaking chemical agents, and materials for human and animal
antibiotics. DCHC was established to further explore and develop
natural gas and brine resources (including bromine and crude salt)
in China. For more information,
visit www.gulfresourcesinc.com.
Forward-Looking Statements
Certain statements in this news release contain forward-looking
information about Gulf Resources and its subsidiaries business and
products within the meaning of Rule 175 under the Securities Act of
1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and
are subject to the safe harbor created by those rules. The actual
results may differ materially depending on a number of risk factors
including, but not limited to, the general economic and business
conditions in the PRC, the risks associated with the COVID-19
pandemic outbreak, future product development and production
capabilities, shipments to end customers, market acceptance of new
and existing products, additional competition from existing and new
competitors for bromine and other oilfield and power production
chemicals, changes in technology, the ability to make future
bromine asset purchases, and various other factors beyond its
control. All forward-looking statements are expressly qualified in
their entirety by this Cautionary Statement and the risks factors
detailed in the Company's reports filed with the Securities and
Exchange Commission. Gulf Resources undertakes no duty to revise or
update any forward-looking statements to reflect events or
circumstances after the date of this release.CONTACT: Gulf
Resources, Inc.
Web: |
http://www.gulfresourcesinc.com |
|
Director of Investor
Relations |
|
Helen Xu (Haiyan Xu) |
|
beishengrong@vip.163.com |
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