China Molybdenum Mining Sold More Than 800 Million Yuan
- Details
- Category: Molybdenum's News
- Published on 17 September 2014
- Written by jwy
- Hits: 320
China Mining Resources (00340) announced that the sale of 75.08% equity interest in Harbin Songjiang consideration of 90.096 million yuan (about HK $ 114 million), the material recorded revenue of HK $ 839 million. The net proceeds of the Disposal Group intends to increase the amount of its cash resources and is used to improve the financial position of the Group.
Group acquired a 75.08% equity interest in Harbin Songjiang in 2007. Currently, the Group and an independent third party owned Harbin Songjiang 75.08% and 24.92%.
Harbin in Heilongjiang Province, Harbin Songjiang base for business, mainly engaged in the mining and processing of molybdenum. In addition, holders of Harbin Songjiang mining rights for a number of Chinese mines and mining rights.
Group said that as the market price of molybdenum iron Mainland related products continued to decline, while rising production costs, resulting in the production of molybdenum Harbin Songjiang Group no longer produce profits very adverse circumstances, together with the molybdenum market in the coming year of uncertainty that the realization of its in Harbin Songjiang value of the equity share capital in order to reduce Harbin Songjiang business (the old account and molybdenum ore mine, to be more concerned about safety, as well as additional safety requirements imposed by the Chinese regulatory authorities, will increase the Group's cost of production of iron and molybdenum) the significant capital investment required to produce the financial pressures in the interests of the Group and its shareholders as a whole.
In addition, the Disposal Group's cash resources will also increase other investment projects, the expansion of other business operations with higher gross margins or better prospects.
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