BEIJING, Aug. 14, 2012 /PRNewswire-Asia-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, copper, and other nonferrous
metals in China, today announced
financial results for the second quarter and first six months ended
June 30, 2012.
Second Quarter Financial Summary
- Revenues were $7.6 million;
- Gross profit was $1.4 million, a
gross margin of 18.4%;
- Net loss attributable to China Shen
Zhou was $2.0 million, and net
loss per basic and diluted share of five
cents.
Ms. Xiaojing Yu, Chairperson and
Chief Executive Officer of China Shen
Zhou commented, "Despite the challenges we faced during the
second quarter, Shen Zhou Mining is still backed by high quality
fluorspar asset with its highly strategic value and broad
downstream applications. We believe our stock is deeply
undervalued. Meanwhile, the Chinese government's support of
fluorite as a key industrial raw material continues to raise
industry barriers of entry. Our large fluorite deposits,
established marketing channels and strategic partnerships with
downstream fluoride manufacturers position us well to lead the
Chinese fluorite industry and capture future opportunities."
Second Quarter Financial Results
Net sales were $7.6 million compared with $9.1 million in the second quarter of 2011. The
decrease in net sales was mainly due to decreased sales volume for
fluorite and zinc concentrate powder.
Fluorite powder sales volume decreased 21% year-over-year to
13,100 tons while sales volume for zinc concentrate powder
decreased by 62% year-over-year to 585 metric tons. Fluorite
revenues and nonferrous metal revenues decreased by 9% and 39%
respectively compared with the second quarter of 2011.
Gross profit was $1.4 million
compared with $4.3 million in the
second quarter of 2011. Gross margin was 18.4% during the
second quarter of 2012.
General and administrative ("G&A") expenses in the second
quarter of 2012 decreased to $2.9
million from $3.3 million in
the 2011 second quarter. G&A expense as a percentage of total
net sales was 37.9% compared with 36.3% in the second quarter of
2011, mainly due to the decrease in net revenues.
Operating loss for the 2012 second quarter was $4.1 million compared with operating income of
$1.0 million in the same period in
2011.
Net loss attributable to Chin Shen
Zhou was $2.0 million, or a
net loss of $0.05 per diluted and
basic share, compared with a net income of $0.1 million, or net income of $0.01 per diluted and basic share, in the second
quarter of 2011.
Six-Month Financial Results
Net revenues for the first six months ended June 30, 2012, were $9.1
million, compared with $11.0
million during the same period of 2011.
Gross profit for the first six months ended June 30, 2012 was $2.0
million, compared with $5.0
million during the same period of 2011. Gross profit
margin was 22.4%, compared with 45.5% one year ago.
Net loss attributable to China Shen
Zhou for the first six months ended June 30, 2012 was $5.1
million, compared to a net loss of $1.5 million for the same period in 2011. Basic
and diluted net loss per share was $0.15 and $0.05 for
the first six months ended June 30,
2012 and 2011, respectively.
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: +86-186-6537-8749
min.liu@grayling.com
Shiwei Yin
Grayling
Tel:
+1-646-284-9474
shiwei.yin@grayling.com
- Tables Follow -
CHINA SHEN ZHOU MINING & RESOURCES,
INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts
in thousands, except share data)
|
|
|
June
30,
2012
|
|
|
December 31,
2011
|
|
|
(Unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
1,245
|
|
|
$
|
5,569
|
Notes receivable, net
|
|
|
805
|
|
|
|
1,019
|
Accounts receivable, net
|
|
|
427
|
|
|
|
3,332
|
Advances to suppliers
|
|
|
1,375
|
|
|
|
1,833
|
Acquisition deposit
|
|
|
-
|
|
|
|
2,359
|
Other deposits
|
|
|
293
|
|
|
|
258
|
Inventories
|
|
|
10,667
|
|
|
|
7,479
|
Due from related parties
|
|
|
3,094
|
|
|
|
-
|
Restricted assets
|
|
|
1,583
|
|
|
|
2,536
|
Deferred financing costs
|
|
|
740
|
|
|
|
-
|
Total
current assets
|
|
|
20,229
|
|
|
|
24,385
|
|
|
|
|
|
|
|
|
Restricted assets
|
|
|
310
|
|
|
|
175
|
Prepayment for vehicle rent
|
|
|
400
|
|
|
|
443
|
Property, machinery and mining assets, net
|
|
|
82,899
|
|
|
|
60,313
|
Total
assets
|
|
$
|
103,838
|
|
|
$
|
85,316
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
2,197
|
|
|
$
|
3,324
|
Short term loans
|
|
|
10,532
|
|
|
|
11,996
|
Receipts in advance
|
|
|
5,305
|
|
|
|
1,528
|
Other payables and accruals
|
|
|
3,940
|
|
|
|
2,772
|
Government loan
|
|
|
1,631
|
|
|
|
-
|
Convertible preferred stock
|
|
|
3,333
|
|
|
|
-
|
Derivative liabilities
|
|
|
1,377
|
|
|
|
-
|
Due to related parties
|
|
|
239
|
|
|
|
250
|
Taxes payable
|
|
|
1,932
|
|
|
|
1,877
|
Total
current liabilities
|
|
|
30,486
|
|
|
|
21,747
|
|
|
|
|
|
|
|
|
Long term
loans
|
|
|
1,742
|
|
|
|
-
|
Total
liabilities
|
|
|
32,228
|
|
|
|
21,747
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Convertible preferred stock ($0.001 par value; 10,000
shares and 0 share authorized as of June 30, 2012 and December 31,
2011 respectively; 3,333 shares and 0 shares issued and outstanding
as of June 30, 2012 and December 31, 2011 respectively)
|
|
|
-
|
|
|
|
-
|
Common
stock ($0.001 par value; 50,000,000 shares authorized; 39,323,772
shares and 32,285,973 shares issued and outstanding as of June 30,
2012 and December 31, 2011 respectively)
|
|
|
39
|
|
|
|
32
|
Additional
paid-in capital
|
|
|
62,925
|
|
|
|
58,425
|
Statutory
reserves
|
|
|
1,732
|
|
|
|
1,732
|
Accumulated other comprehensive income
|
|
|
6,476
|
|
|
|
6,109
|
Accumulated deficit
|
|
|
(18,487)
|
|
|
|
(13,344)
|
Stockholders' equity - China Shen Zhou Mining &
Resources, Inc. and Subsidiaries
|
|
|
52,685
|
|
|
|
52,954
|
Noncontrolling interest
|
|
|
18,925
|
|
|
|
10,615
|
Total
stockholders' equity
|
|
|
71,610
|
|
|
|
63,569
|
Total
liabilities and stockholders' equity
|
|
$
|
103,838
|
|
|
$
|
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 Six Months Ended
|
|
|
June 30,
2012
|
|
|
June 30,
2011
|
|
|
June 30,
2012
|
|
|
June 30,
2011
|
Net
revenue
|
|
$
|
7,550
|
|
|
$
|
9,117
|
|
|
$
|
9,056
|
|
|
$
|
11,013
|
Cost of
sales
|
|
|
6,164
|
|
|
|
4,773
|
|
|
|
7,026
|
|
|
|
6,005
|
Gross
profit
|
|
|
1,386
|
|
|
|
4,344
|
|
|
|
2,030
|
|
|
|
5,008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and distribution expenses
|
|
|
20
|
|
|
|
24
|
|
|
|
44
|
|
|
|
60
|
General and administrative expenses
|
|
|
2,862
|
|
|
|
3,313
|
|
|
|
5,724
|
|
|
|
5,503
|
Provision for doubtful accounts
|
|
|
2,044
|
|
|
|
13
|
|
|
|
2,113
|
|
|
|
(77)
|
Impairment provision for inventories
|
|
|
547
|
|
|
|
-
|
|
|
|
547
|
|
|
|
-
|
Total operating expenses
|
|
|
5,473
|
|
|
|
3,350
|
|
|
|
8,428
|
|
|
|
5,486
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) from operations
|
|
|
(4,087)
|
|
|
|
994
|
|
|
|
(6,398)
|
|
|
|
(478)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
(431)
|
|
|
|
(201)
|
|
|
|
(893)
|
|
|
|
(346)
|
Warrant modification
|
|
|
-
|
|
|
|
-
|
|
|
|
(578)
|
|
|
|
-
|
Fair value change at derivative liabilities
|
|
|
3,035
|
|
|
|
-
|
|
|
|
3,006
|
|
|
|
-
|
Amortization of Warrants attached to preferred
stock
|
|
|
(346)
|
|
|
|
-
|
|
|
|
(375)
|
|
|
|
-
|
Amortization of deferred financing cost for preferred
stock
|
|
|
(253)
|
|
|
|
-
|
|
|
|
(270)
|
|
|
|
-
|
Other, net
|
|
|
(110)
|
|
|
|
115
|
|
|
|
(135)
|
|
|
|
73
|
Total other income (loss)
|
|
|
1,895
|
|
|
|
(86)
|
|
|
|
755
|
|
|
|
(273)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) from continuing operations before income taxes
|
|
|
(2,192)
|
|
|
|
908
|
|
|
|
(5,643)
|
|
|
|
(751)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expenses
|
|
|
(178)
|
|
|
|
(280)
|
|
|
|
(178)
|
|
|
|
(280)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) from continuing operations
|
|
|
(2,370)
|
|
|
|
628
|
|
|
|
(5,821)
|
|
|
|
(1,031)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations of discontinued component, net
of taxes
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(7)
|
Loss on disposal of discontinued subsidiary, net of
taxes
|
|
|
-
|
|
|
|
(82)
|
|
|
|
-
|
|
|
|
(82)
|
Loss from discontinued operations
|
|
|
-
|
|
|
|
(82)
|
|
|
|
-
|
|
|
|
(89)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
(2,370)
|
|
|
|
546
|
|
|
|
(5,821)
|
|
|
|
(1,120)
|
Add
(less): Noncontrolling interests attributable to the noncontrolling
interests
|
|
|
460
|
|
|
|
(418)
|
|
|
|
739
|
|
|
|
(361)
|
Less:
Preferred stock dividends
|
|
|
(56)
|
|
|
|
-
|
|
|
|
(61)
|
|
|
|
-
|
Net income
(loss) - attributable to China Shen Zhou Mining & Resources,
Inc. and Subsidiaries
|
|
|
(1,966)
|
|
|
|
128
|
|
|
|
(5,143)
|
|
|
|
(1,481)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
currency translation adjustments
|
|
|
(20)
|
|
|
|
615
|
|
|
|
367
|
|
|
|
772
|
Comprehensive income (loss)
|
|
$
|
(1,986)
|
|
|
$
|
743
|
|
|
$
|
(4,776)
|
|
|
$
|
(709)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) per common share – basic and diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From continuing operations
|
|
$
|
(0.05)
|
|
|
$
|
0.01
|
|
|
$
|
(0.15)
|
|
|
$
|
(0.05)
|
From discontinued operations
|
|
|
-
|
|
|
|
(0.00)
|
|
|
|
-
|
|
|
|
(0.00)
|
|
|
$
|
(0.05)
|
|
|
$
|
0.01
|
|
|
$
|
(0.15)
|
|
|
$
|
(0.05)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted
|
|
|
36,974
|
|
|
|
30,836
|
|
|
|
34,932
|
|
|
|
30,448
|
CHINA SHEN ZHOU MINING & RESOURCES, INC
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(Amounts
in thousands, except share data)
(Unaudited)
|
|
|
For the Six Months Ended
|
|
|
June
30,
2012
|
|
|
June
30,
2011
|
Cash flows
from operating activities:
|
|
|
|
|
|
|
|
Net
loss
|
|
$
|
(5,143)
|
|
|
$
|
(1,481)
|
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
|
|
|
2,113
|
|
|
|
(78)
|
Impairment
provision for inventories
|
|
|
547
|
|
|
|
-
|
Warrant
modification
|
|
|
578
|
|
|
|
-
|
Deemed
dividend expense
|
|
|
61
|
|
|
|
-
|
Amortization of warrants attached to preferred
stock
|
|
|
375
|
|
|
|
-
|
Amortization of deferred financing costs for
preferred stock
|
|
|
270
|
|
|
|
-
|
Fair value
change at derivative liabilities
|
|
|
(3,006)
|
|
|
|
-
|
Depreciation and amortization
|
|
|
3,013
|
|
|
|
2,096
|
Stock-based compensation
|
|
|
-
|
|
|
|
972
|
Noncontrolling interests
|
|
|
(739)
|
|
|
|
361
|
Changes in
operating assets and liabilities:
|
|
|
|
|
|
|
|
(Increase)
decrease in
|
|
|
|
|
|
|
|
Notes
receivable
|
|
|
222
|
|
|
|
(774)
|
Accounts
receivable
|
|
|
3,312
|
|
|
|
(1,922)
|
Advances
to suppliers
|
|
|
813
|
|
|
|
(503)
|
Other
receivable
|
|
|
(1,699)
|
|
|
|
-
|
Other
deposits
|
|
|
124
|
|
|
|
(417)
|
Prepayment
for vehicle rent
|
|
|
45
|
|
|
|
-
|
Prepayment
for office rent
|
|
|
-
|
|
|
|
82
|
Due from
related parties
|
|
|
(3,080)
|
|
|
|
-
|
Inventories
|
|
|
(3,243)
|
|
|
|
(586)
|
Restricted
assets
|
|
|
921
|
|
|
|
(101)
|
Increase
(decrease) in
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
(1,756)
|
|
|
|
(886)
|
Receipts
in advance
|
|
|
2,896
|
|
|
|
56
|
Other
payables and accruals
|
|
|
(4,705)
|
|
|
|
(1,489)
|
Taxes
payable
|
|
|
(1,106)
|
|
|
|
656
|
Net cash
used in operating activities from continuing operations
|
|
|
(9,187)
|
|
|
|
(3,925)
|
Net cash
used in operating activities from discontinued
operations
|
|
|
-
|
|
|
|
(37)
|
Net cash used in operating activities
|
|
|
(9,187)
|
|
|
|
(3,962)
|
Cash flows
from investing activities:
|
|
|
|
|
|
|
|
Purchases
of property, machinery and mining assets
|
|
|
(1,592)
|
|
|
|
(2,179)
|
Acquisition of subsidiaries, net of cash and cash
equivalents acquired
|
|
|
-
|
|
|
|
(3,604)
|
Net cash used in investing activities
|
|
|
(1,592)
|
|
|
|
(5,783)
|
Cash flows
from financing activities:
|
|
|
|
|
|
|
|
Due to related parties
|
|
|
(249)
|
|
|
|
(646)
|
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
|
|
|
224
|
|
|
|
-
|
Issuance costs of convertible preferred
stock
|
|
|
(506)
|
|
|
|
-
|
Repayment of short-term loans
|
|
|
(14,016)
|
|
|
|
(7,396)
|
Proceeds from short-term loans and long-term
loans
|
|
|
15,995
|
|
|
|
6,452
|
Net cash provided by financing
activities
|
|
|
6,448
|
|
|
|
16,894
|
|
|
|
|
|
|
|
|
Foreign
currency translation adjustment
|
|
|
7
|
|
|
|
138
|
|
|
|
|
|
|
|
|
Net
(decrease) increase in cash and cash equivalents
|
|
|
(4,324)
|
|
|
|
7,287
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents at the beginning of the period
|
|
|
5,569
|
|
|
|
1,545
|
Cash and
cash equivalents at the end of the period
|
|
$
|
1,245
|
|
|
$
|
8,832
|
|
|
|
|
|
|
|
|
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
|
|
$
|
1,667
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
Supplemental disclosures of cash flow
information:
|
|
|
|
|
|
|
|
Cash paid
for interest expenses
|
|
$
|
873
|
|
|
$
|
262
|
Cash paid
for income tax
|
|
$
|
789
|
|
|
$
|
-
|
SOURCE China Shen Zhou Mining & Resources, Inc.