China: Prosperity Minerals sees increase in revenues and profits

China: Prosperity Minerals sees increase in revenues and profits
Published: 01 December 2011

Reporting its interim results for the six months to 30 September, Prosperity Minerals boosted its first-half revenues by 17% to US$507.8m while producing a pre-tax profit of US$8.4m (1H11: US$2.5m loss), the firm said.

Prosperity’s cement operations produced an attributable profit of US$8.7m, compared to a loss of US$0.6m in 1H11. The firm said that its 33 per cent-owned Anhui Chaodong Cement business produced and sold more cement and clinker as demand in its region was strong and average selling prices higher. The 16.1 per cent-owned TCC Liaoyang business produced an operating profit of US$0.2m, but it ended up contributing a loss of US$1.9m (1H11: US$0.04m) due to as loss on demand disposal of US$2.1m caused by a share issuance in August.

Prosperity said that while the firm increased the amount of iron ore shipped during the first half to 2.8Mt, from 2.7Mt in 1H11, its revenue increase was also due to higher average selling prices. Prosperity said that its real estate development projects business made a loss of US$3.5m, compared to a US$0.6m profit in 1H11.