Wednesday, March 19, 2014

CAA Resources Doubles Revenue to $110.4 Million, Improves Earnings 90 Percent to $19.7 Million in 2013

CAA Resources Limited (HKSE: 2112), a Malaysia-based iron ore producer supplying leading steel manufacturers in China, today announced that, for the year ended December 31, 2013, the company reported net revenue of $110,372,000, a 103 percent improvement on net revenue of $54,323,000 achieved in 2012.

 

Total profit attributable to owners of the company for 2013 was $19,745,000, or $.015 per share, a 90 percent improvement on total profit attributable to owners of the company of $10,419,000, or $.009 per share, for 2012.

 

Sales volume, on dry basis, for 2013 was approximately 1,053 Kt, a 146 increase on sales volume of 429 Kt recorded in 2012.

 

The company's cash and cash equivalents at December 31, 2013 was $30,748,000, compared to $1,871,000 at December 31, 2012.

 

CAA's improvements in both revenue and earnings compared to 2012 was primarily the result of significant increases in demand for the company's iron ore products from major steel manufacturers in China, said Chairman and CEO Mr. Yang Li.

 

Mr. Li added that China's dependence on iron ore imports again reached record highs in 2013, increasing 10.2 percent to 820 million tons. "China remains in the mid-stage of its industrialization and urbanization program," said the CEO. "This rapid advancement continues to require annual increases in the nation's steel production, and as long as this trend prevails, CAA, with its high-Fe content iron ore -- an essential ingredient of high-quality steel -- will continue to benefit."

 

To review the company's complete annual results announcement, with financial tables, please go to: http://caa-resources.com/attachment/20140318211701001862465_en.pdf

 

Investors wishing to receive CAA's corporate communications as they become available may go to http://irdirect.net/2112/corporate_overview and register under Email Alerts.

 

Please visit http://companyspotlight.com/114557/caa-resources-ltd for expanded coverage and a current CAA investor kit.

 

About CAA Resources

CAA (http://caa-resources.com/) holds extraction rights to significant and high-quality iron ore reserves in Malaysia's Pahang State. The company's open pit mine is located in close proximity to coastal shipping facilities which in turn offer lower production costs and shorter sea transportation routes to China compared to other resource-endowed countries such as Australia, Brazil or India. The high quality of its reserves, low-cost production methods and efficient transportation combine to make CAA a highly competitive supplier, primarily to the China market.

 

CAA Resources generates positive net cash and has a strong balance sheet following a successful listing on the Hong Kong Stock Exchange in 2013. Its dual track growth strategy is to expand operations beyond its current footprint with the acquisition of new mining rights, and to enhance output from existing operations through further mechanization and enhancement of production technologies.

 

CAA is primarily focused on the exploration, mining, crushing, beneficiation and sale of iron ore products. Its main asset, the Ibam Mine, has combined measured and inferred mineral resource of 152 million tons at an average grade of 46.5% total iron ore as of December 31, 2012.

 

The company's principal customers are a variety of reputable Chinese steel mills with whom CAA Resources' management have longstanding and stable relations. According to United Nations Conference on Trade and Development, Chinese apparent iron ore accounted for 53% of the world total consumption. Starting from the second half of 2012, CAA also began selling iron ore products to customers in Malaysia.

 

Forward-Looking Statements

This press release is for information purposes only and contains certain forward-looking statements which, by their nature, involve risk and uncertainty because they relate to or depend upon future events and circumstances. There are a number of factors which could cause actual results and developments to differ materially from those expressed or implied by these forward looking statements, including a number of factors outside CAA Resources' control. All forward-looking statements are based upon information known to CAA Resources on the date of this announcement and no representation or warranty is given in relation to them, including as to their completeness or accuracy or the basis on which they were prepared. CAA Resources gives no undertaking to update forward-looking statements whether as a result of new information, future events or otherwise. Information contained in this announcement relating to CAA Resources should not be relied upon as an indicator of future performance.

 

For further information, please contact:

RLM Finsbury

Karen Yu
852-3166-9866
852-6129-7050
karen.yu@rlmfinsbury.com

Asia IR/PR

Investors:
Jimmy Caplan
+1-512-329-9505
jimmy@asia-irpr.com

Media:
Rick Eisenberg
+1-212-496-6828
eiscom@msn.com

 

 

SOURCE: CAA Resources LTD

 



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