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HONG KONG, Nov 26, 2010 - (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 miner and producer, announces its unaudited interim results for the six months ended 30 September 2010 (the "Period").
During the Period, Sino Prosper's revenue totalled HK$29.8 million, of which 93% was from the sale of gold (2009: 19.4%); and 7% from the sale of fuel oil and chemicals (2009: 80.6%). The Group's net loss attributable to shareholders was approximately HK$27.3 million (2009: approximately HK$6.1 million). The loss was mainly due to the loss on early redemption of a promissory note, and the finance costs on convertible bonds and the promissory note. The Board of Directors did not recommend the payment of an interim dividend for the six moths ended 30 September 2010 (2009: Nil).
During the Period, the Group has been transforming its business to focus on the mining and production of precious metals in China and has made significant progress in only 4 months since completion of the acquisition of its 70% stake in Ao Han Qi Xin Rui En Mining Industry Co., Ltd ("AoHanQi") in Inner Mongolia. Sino Prosper has completed the first stage expansion of the AoHanQi Mine and the construction of a 500 tonnes per day ("tpd") ore processing plant. Current financial performance does not reflect the potential impact of the operation of the new plant. The current output capacity of the mine has increased to 600 tonnes per day ("tpd"). Second stage expansion is now underway and the output capacity of the mine is expected to exceed 2,000 tpd upon completion of current expansion planned for 2011 1H. Current plans call for expansion of the processing plant to 2,000 tpd later in 2011.
In addition, Beijing Kewen Minerals Consulting Limited and Behre Dolbear Asia, Inc. were appointed as new technical consultants for Sino Prosper's various precious metals mining projects in the PRC. The appointment of the highly competent technical advisors demonstrates Sino Prosper's commitment to operating at a high technical standard.
In August 2010, Sino Prosper completed the acquisition of an additional 27% interest in Heilongjiang Zhongyi Weiye Economic & Trade Co., Ltd ("Zhongyi"), taking its ownership interest to 92% of Zhongyi and its 5 contiguous exploration licenses covering over 360 km2. The Group is focusing initially on three tenements: PaoShouYingDongShan, SanChaLu and XiNanCha. During this initial exploration work, the focus will be on developing resources based on the prevailing relevant PRC standards, with an aim to obtain mining permits as soon as possible.
During the Period, and consistent with the Group's strategy of focusing on the mining and production of precious metals in the PRC, Sino Prosper completed the disposal of its wholly-owned fuel oil servicing subsidiary - Sino Prosper Gas Limited in October 2010.
As at 30 September 2010, Sino Prosper was in a healthy financial position with cash and bank balances of approximately HK$400.9 million (as at 31 March 2010: HK$216.0 million). Its gearing ratio calculated as a ratio of net debt to total equity was Nil (as at 31 March 2010: Nil). The Group's net asset value as at 30 September 2010 increased by 59% to approximately HK$1,701.6 million (as at 31 March 2010: approximately HK$1,070.8 million), the growth was mainly attributable to the increase in exploration and evaluation assets and mining rights from acquisition of subsidiaries.
Mr Richard Sung, CEO of Sino Prosper, concluded, "We are very pleased with our progress over the last year. Sino Prosper made great efforts in accelerating the development of the AoHanQi and Zhongyi projects. We continue to seek opportunities to expand our production and resource base over the coming year. Given our high quality projects, expected low production and development costs, the demonstrated capabilities of our team and solid financial position, Sino Prosper is poised to become a significant participant in the Chinese precious metal mining industry."
Contact:
Sino Prosper State Gold Resources Holdings Limited
Mr Garry Stein
Director, Corporate Development
Tel: +852-2829-8911 / 852-6051-8659
E-mail: garrystein@sinoprosper.com
Quam IR
Ms Anita Wan
Tel: (852) 2217-2687
E-mail: anita.wan@quamgroup.com
Ms Sharon Au
Tel: +852-2217-2680
E-mail: sharon.au@quamgroup.com
Ms Venus Lam
Tel: +852-2217-2909
E-mail: venus.lam@quamgroup.com
Topic: Earnings
Source: Sino Prosper State Gold Resources
Sectors: Metals & Mining
https://www.acnnewswire.com
From the Asia Corporate News Network
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