Prosperity Minerals FY pretax profit US$59.3m vs US$45.9m

Prosperity Minerals FY pretax profit US$59.3m vs US$45.9m
Published: 07 July 2008

Prosperity Minerals Holdings said Monday that full year pretax profit was US$59.3m, compared to US$45.9m the previous year.

The company said demand for both cement and iron ore in the PRC has remained strong in 2008. The PRC’s GDP grew by 10.6% pa in the first quarter and is expected to maintain strong growth throughout the year.

For Prosperity, operating issues include the effective management of rising product manufacturing costs (including energy), transportation and product pricing. However, it has ensured good results in the first few months of the new fiscal year.

The first new clinker production line and two cement grinding facilities at Chao Hu are expected to be commissioned by the end of 2008, bringing the total designed saleable capacity of ACC to 4.8 million tonnes pa. In May 2008, Prosperity invested in a 40% indirect interest in a cement grinding facility in Guangzhou City which will enable Prosperity to open up new target markets while creating synergy with the Company’s existing facilities at YDM.

In May and June 2008, Prosperity invested in a 30% interest in two new cement and clinker production facilities in Yunnan Province with a total designed saleable capacity of 4.5Mta. Together, these projects add 6.5Mta to the gross (including the equity interests of partners) total designed saleable capacity under Prosperity’s control or influence.