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| Aggressive Mine Expansion Paving the Way for Full Production |
HONG KONG, June 29, 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 audited consolidated results for the fiscal year ended 31 March 2012 (the "Year").
During the Year, Sino Prosper recorded a growth in revenue of 5.5% to approximately HK$50.3 million (2011: HK$47.7 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$46.8 million (2011: approximately HK$44.0 million). The increase was mainly due to the increase in staff costs and depreciation of property, plant and equipment. Basic and diluted loss per share were HK6.08 cents (2011: loss per share of HK7.00 cents). The Board of Directors did not recommend the payment of a final dividend for the year ended 31 March 2012 (2011: Nil).
Gold mining has remained the core business and revenue driver of Sino Prosper. The Group recorded the revenue of approximately HK$50.3 million, of which 82.7% was from the sales of gold (2011: 91.1%); 16.4% from sales of gold concentrate and amalgam (2011: 5.0%); and 0.9% from the sales of sliver concentrates (2011: Nil). The Group did not record any turnover from the sales of fuel oil and chemicals (2011: 3.9%).
During the Year, Aohan Qi Mine ("Aohan Qi"; 70% owned by Sino Prosper) has generated revenue of approximately RMB8.7 million. Aohan Qi has been focused on expansion and facility upgrades. Construction of the new dry tailings facility and other upgrades to the Aohan Qi processing facility are essentially complete. Sino Prosper is on track for restoration of full 500tpd operations at the Aohan Qi Processing plant in the coming months. In the Aohan Qi mine, construction of four new vertical access shafts have been nearly completed, while over 7,000 metres ("m") of new underground tunnels have been constructed for a current total of about 11,000m of existing underground tunnels.
A Regional Cooperation Agreement was signed with The People's Government of the Aohan Banner, Inner Mongolia, the PRC in April 2011. With Sino Prosper's successful investment and development in Aohan Qi, it has been invited by the local government to examine potential mining opportunities in the region.
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. Systematic geological, geochemical and geophysical programs have been carried out in the Zhongyi Weiye project. Further test drilling will be conducted in 2012, supplemented by surface trenching and sampling programs.
On 19 December 2011, Sino Prosper entered into an acquisition agreement with Mr Leung Ngai Man, the chairman of the Company and an executive director and a substantial shareholder, to acquire an asset including a mining permit at Qing Jiao Gold Mine in Guizhou Province. The Circular in relations to the project is expected to be dispatched in about September 2012.
A Hebei Province Framework Agreement was signed in April 2011, given the due diligence results did not meet the expectations, the Group decided not to proceed with this project.
As at 31 March 2012, Sino Prosper maintained a strong financial position with cash and bank balances of approximately HK$477.2 million (as at 31 March 2011: HK$311.8 million). The Group's gearing ratio calculated as a ratio of net debt to total equity was Nil (as at 31 March 2011: Nil). The Group's net asset value as at 31 March 2012 was approximately HK$2,043.3 million (as at 31 March 2011: approximately HK$1,660.3 million). The significant increase in the Group's net asset value was mainly attributable to the increase in bank balances and cash by HK$400 million generated from the placing of shares of the Company.
For the year ended 31 March 2012, the Company repurchased for cancellation 101,970,000 shares for an aggregate consideration of approximately HK$16.6 million.
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 places at a placing price of HK$0.01 per Warrant, with gross proceeds amounted to approximately HK$1.6 million. Assuming exercise in full of the subscription rights attaching to the Warrants at the subscription price of HK$0.72 per new Share, an additional amount of HK$109.4 million will be raised at maximum.
Mr Richard Sung, CEO of Sino Prosper said, "This was a year of expansion for Sino Prosper. The Group has moved a big step forward to achieving full production and processing capacity. At the same time, the Group has actively looked into potential acquisition targets, including the proposed acquisition of the Guizhou Qing Jiao gold mine, so as to increase the total mineral reserves."
Mr Sung concluded, "During the Year, the European debt crisis has brought to the financial world much uncertainties and the gold price experienced fluctuations. However, we believe the gold price is still well-supported by a number of strong fundamentals in long run, for instance, its investment value as a hedge against uncertainties. Sino Prosper will leverage on this favourable trend and continue improving its operations, increasing its reserves through exploration and acquisition and striving to bring optimal value to our shareholders."
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) 2217-2813 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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