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| Becomes a Pure Precious Metals Player in the PRC |
HONG KONG, June 29, 2011 - (ACN Newswire) - Sino Prosper State Gold Resources Holdings Limited ("Sino Prosper" or the "Company", together with its subsidiaries, the "Group", SEHK: 0766), a Chinese precious metals company, announces its audited consolidated results for the fiscal year ended 31 March 2011 (the "Year").
During the Year, Sino Prosper's revenue increased by 14% to approximately HK$47.7 million which was mainly attributable to the increase of revenue from the sales of gold and the generation of revenue from the sales of gold concentrate. The Group's net loss attributable to shareholders narrowed to approximately HK$44.0 million (2010: approximately HK$58.9 million), which was mainly due to the generation of net foreign exchange gain and a gain on disposal of subsidiaries. The Board of Directors did not recommend the payment of a final dividend for the year ended 31 March 2011 (2010: Nil).
Sino Prosper has been concentrating on its core gold mining business and achieved improvement during the Year. The Group recorded the revenue of approximately HK$47.7 million, of which 91.1% was from the sales of gold (2010: 43.3%); 5.0% from sales of gold concentrate (2010: Nil); and 3.9% from the sales of fuel oil and chemicals (2010: 56.7%).
During the Year, significant progresses of gold mining business were seen since the completion of the acquisition of 70% stake in Aohanqi Xinrui En Industry Co., Ltd in Inner Mongolia ("Aohanqi"). The ore processing plant achieved its full rated processing capacity of 500 tonnes per day ("tpd") in March 2011 and the Group plans to gradually undertake further expansion to achieve a processing capacity of 2,000tpd. Initial quantities of gold alloy and gold concentrates have been produced with some initial sales in only the final quarter of the fiscal year. In addition, the Group is planning to construct a new refinery with an expected annual output capacity in excess of one million ounces of 99.99% pure gold per annum. The Group has also completed the initial expansion work at the Aohanqi mine, which the current mining capacity has increased up to 600tpd. With the presently constructing vehicle shafts and expanded tunnel system expected to be finished in early 2012, the mine output capacity is expected to increase to approximately 2,500tpd.
Sino Prosper completed the acquisition of an additional 27% interest in Heilongjiang Zhongyi Weiye Economic & Trade Co., Ltd ("Zhongyi") in August 2010, taking its ownership interest to 92% of Zhongyi and its 5 contiguous exploration licenses covering over 360 km2. Initial exploration work will be focused on three tenements: PaoShouYingDongShan, SanChaLu and XiNanCha, where the main focus will be on developing resources based on the prevailing relevant PRC standard, in order to convert exploration license to mining license and allow for initial mine construction.
Mr Richard Sung, CEO of Sino Prosper, said: "During the Year, the Group experiences a phase of rapid expansion. We have been very active in improving our exploration and development programs, to enhance the processing and mining capacity. The expansion of Aohanqi mine and production facilities have dramatically expanded gold mining business, which is expected to lead the way in revenue contribution."
During the Year, in line 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 in October 2010, and ceased its business in the fuel oil and related supporting and consultation services.
In May 2010, Sino Prosper completed the placement of 2,888 million shares at HK$0.19 per share. The net proceeds amounted to approximately HK$529.0 million which were mainly applied to the areas that in accordance to previously disclosed. Subsequent to the current fiscal year end, Sino Prosper completed a further placement of HK$418.0 million on 3 May 2011.
As at 31 March 2011, Sino Prosper maintained a strong financial position with cash and bank balances of approximately HK$311.8 million (as at 31 March 2010: HK$216.0 million). These balances have been further enhanced by the addition of the next proceeds of the subsequent financing. The Group's 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 31 March 2011 increased by 55.05% to approximately HK$1,660.3 million (as at 31 March 2010: approximately HK$1,070.8 million), due to the Aohanqi acquisition and financing during the year ended 31 March 2011.
Sino Prosper continues to focus on its corporate development strategy through the acquisition of producing or near-producing assets aiming at increasing resources and production per share. Following the end of the current fiscal year, in April 2011, two significant agreements were signed. A Regional Cooperation Agreement was signed with The People's Government of the Aohan Banner, Inner Mongolia, the PRC ("Aohan Banner"), in which Sino Prosper has agreed to assist with the consolidation gold and copper resource assets in the region and development and exploration of gold, copper, jade and gem stone resources. Under this agreement, Sino Prosper will be given preferential treatment in a number of respects in AohanBanner. The second agreement relates to the potential acquisition of a company in Zhuolu County, Heibei Province, PRC that owns mines containing mineral reserves of approximately 422 tons of silver and 129,685 tons of manganese.
Mr Sung concluded, "The agreements outlined reflect our strategic commitment to diversify our precious metal assets into silver and strengthen our future resource and production levels per share. Given the continued investment demand and strong price for precious metals, coupled with our fast tracking projects development, low production cost and strong regional support, we expect to continue to progress in our quest to become a leading precious metal producer in the PRC."
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: +852-2217-2811
E-mail: anita.wan@quamgroup.com
Ms Sharon Au
Tel: +852-2217-2812
E-mail: sharon.au@quamgroup.com
Ms Venus Lam
Tel: +852-2217-281
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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