Friday, March 29, 2024
 
Columnist
Martin Hennecke
 
L'SEA RESOURCES
HKEx Stock Code : 00195 
 
Corporate Profile
Principally engaged in manufacturing and sales of insulation and heat resistance materials; trading of copper and silicone rubber; metal tin mining and sales of tin concentrates; and trading of metal resources.

Business Review - For the year ended December 31, 2012

In 2012, the European debt crisis and US fiscal cliff muted the international economy. The global economy's recovery has been slower than expected. Tin price raised at the beginning of the year, and dropped to a certain extent afterward. The price maintained below USD20,000 per tonne from May to September and resumed an upward trend in the fourth quarter with around USD23,500 per tonne at the end of the year. The volatility of tin price has adversely affected the valuation of Renison mine.

As the Group's major business, the total production volume of tin contained in concentrates of Renison underground mine in the year 2012 was 5,849 tonnes (2011: 5,012 tonnes), an increase of approximately 16.7% as compared to the year 2011. Renison mine contributed approximately HK$399.3 million to the Group's revenue for 2012 (2011: HK$342.8 million) with an increase of approximately 16.5%.

Loss attributable to the Company's shareholders for the year ended 31 December 2012 amounted to approximately HK$236.8 million (2011: HK$733.5 million), a decrease of approximately 67.7%. It was mainly due to the fact that no impairment losses on mining structure and mining rights was considered necessary in 2012.

Business Outlook - For the year ended December 31, 2012

From a macro view, the international economy of the year 2013 is expected to be slightly better than that of the last year. The European debt crisis and US fiscal cliff eased to different extent. In the PRC, positive fiscal policies and stable monetary policies will continue in 2013, as the PRC government is expected to maintain a steady and moderate economic growth.

International Tin Research Institute pointed that the consumption of tin may slow down, the increase of global tin production is much less and the production from new mines is lacking.

In the next three to five years, the global tin market is expected to be in shortage. In the future, it is expected to have new applications of tin in lead-free soldering, lithium ion battery, solar cells, fuel catalysts and so on. The tin price will then be expected to stay well. The Group still remains optimistic on the long-term prospect of the tin industry.

Source: L'sea Resources (00195) Annual Results Announcement
Chairman Chen Zhenliang Issued Capital (shares) 5,130M
Par Value HKD 0.005 Market Capitalisation (HKD) 1,513M
 
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