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| Improving Operations Allowed For Enhancement of Production Capacity |
HONG KONG, Nov 6, 2012 - (ACN Newswire) - Sino Prosper State Gold Resources Holdings Limited ("Sino Prosper" or the "Company", together with its subsidiaries, the "Group", Stock Code: 00766.hk), a Chinese precious metals company, announces its unaudited condensed consolidated results for six months ended 30 September 2012 (the "Period")
During the Period, Sino Prosper recorded a growth in revenue of 3.7% to approximately HK$34.1 million (2011: HK$32.9 million), which was mainly attributable to the increase in sales of gold concentrates and amalgam. The Group's net loss attributable to owners was approximately HK$33.1 million (2011: approximately HK$16.1 million). The increase was mainly due to the increase in total staff costs and cost of inventories recognized as expense. Basic and diluted loss per share were HK4.27 cents (2011: loss per share of HK2.11 cents). The Board of Directors did not recommend the payment of an interim dividend for the six months ended 30 September 2012 (six months ended 30 September 2011: Nil).
Gold mining has remained the core business of Sino Prosper. The Group recorded the revenue of approximately HK$34.1 million, of which 67.5% was from the sales of gold (2011: 82.5%); 32.2% from sales of gold concentrate and amalgam (2011: 16.3%); and 0.3% from the sales of sliver concentrates (2011: 1.2%).
During the Period, Aohan Qi Mine ("Aohan Qi"; 70% owned by Sino Prosper) has been focused on further upgrading the existing facilities of the mine to enhance production capacity and increase access to mineralized zones. Operations at the Aohan Qi Processing plant were fully restored at 500tpd in August.
Sino Prosper holds 92% interest in Heilongjiang Zhongyi Weiye Economic & Trade Co., Ltd ("Zhongyi Weiye") and its 5 contiguous exploration licenses covering over 360 km2. Further exploration is being carried out on top of the existing operation. Further test drilling will be conducted at the end of 2012, supplemented by surface trenching and sampling programs.
Mr Richard Sung, CEO of Sino Prosper said, "It is encouraging to have the processing capacity fully restored which was helped by the significant changes of the Aohan Qi Mine local project management team and completion of necessary mining construction. With the improving operations and aggressive mine expansion, the Group is optimistic about improved performance and project delivery going forward, while the Group keeps looking into potential acquisition targets, so as to increase the total mineral reserves and expand the revenue base."
For the proposed acquisition of a mining permit at Qing Jiao Gold Mine in Guizhou Province, it will be postponed to the end of 2012 as additional time is required for the Company to prepare the information to be presented in the Circular, including technical report for the Qing Jiao Gold Mine which was originally expected to be available before August 2012.
In addition to the existing exploration and production projects, Sino Prosper is planning to operate finance business. The Group obtained a Hong Kong money lenders license and the relevant operation has already commenced.
As at 30 September 2012, Sino Prosper maintained a strong financial position with cash and bank balances of approximately HK$435.6 million (as at 31 March 2012: HK$477.2 million). The Group's gearing ratio calculated as a ratio of net debt to total equity was Nil (as at 31 March 2012: Nil). The Group's net asset value as at 30 September 2012 was approximately HK$2,015.6 million (as at 31 March 2012: approximately HK$2,043.3 million). The decrease in the Group's net asset value was mainly due to the decrease in bank balances and cash by approximately HK$41.6 million arising from the purchase of property, plant and equipment, and net cash wheel in operating activities.
On 7 March 2012, Sino Prosper entered into a placing agreement with a placing agent in relation to a placing of up to 152,000,000 warrants to not less than six placees ("2012 Placing Agreement"). The completion of the 2012 Placing Agreement took place on 11 April 2012 with net proceeds of approximately HK$1.4 million which will be used for general working capital of the Group and any acquisitions of the Group in the future.
Mr Sung concluded, "The unresolved European debt crisis and economic slowdown worldwide leading to a pessimistic outlook on the global economy, while gold price keeps fluctuating. In view of the current market conditions, the Group will accelerate the pace of mine expansion and pursue acquisition targets in a prudent manner, while considering proper allocation and preservation of scarce capital resources with an aim to achieve long term success."
Contact:
Sino Prosper State Gold Resources Holdings Limited
Mr Jackie LEE
Financial Controller Tel: (852) 2829-8966
(852) 6972-9529 E-mail: jackielee@sinoprosper.com
Quam IR
Ms Anita WAN Tel: (852) 2217-2811 E-mail: anita.wan@quamgroup.com
Ms Sharon AU Tel: (852) 2217-2812 E-mail: sharon.au@quamgroup.com
Ms Venus LAM Tel: (852) 2217-2813 E-mail: venus.lam@quamgroup.com
Topic: Press release summary
Source: Sino Prosper State Gold Resources
Sectors: Daily Finance, Daily News
https://www.acnnewswire.com
From the Asia Corporate News Network
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