Prosperity Minerals FY Pretax profit US$7.7m vs US$59.3m

Prosperity Minerals FY Pretax profit US$7.7m vs US$59.3m
Published: 09 July 2009

Prosperity Minerals Holdings Ltd said Thursday that for the year ended March 31, it made a pretax profit of $7.7 million compared with a profit of $59.3 million in the previous year.

MAIN FACTS:

-28% increase in revenue to $647.7 million (2008: $507.5 million)

-43% decrease in EBITDA to $44.3 million (2008: $77.7 million)

-54% decrease in operating profit to $21.6 million (2008: $47.1 million)

-73% decrease in adjusted profit before tax to $15.9 million (2008: $59.3 million) adjusted for one-off non-cash provision of $8.2 million

-Basic earnings per share of 4 cents (2008: 41.8 cents)

-Proposed final dividend of 1.7 cents per share (2008: interim dividend of 6 cents and final dividend of 12 cents)

-Iron Ore Trading team has worked hard to increase the tonnage of iron ore shipped and to deliver a good profit to the Company.

-China’s CNY4 trillion (equivalent to $585 million) stimulus package announced in November 2008 is already having a positive effect on the demand for both cement and steel.

-Prosperity is well positioned to take advantage of growth in both the cement and iron ore markets in China and, despite the ongoing difficult economic backdrop, the Board is looking forward to a year of further progress.