Prosperity Minerals Holdings the cement manufacturing and iron ore trading group which operates in China (PRC), has announced its results for the six months ended 30 September 2006. Cement manufacturing generated total segment results (operating profit prior to administrative expenses) of US$10.2m.
Total cement and clinker sales were 2.8Mt at Yingde Dragon Mountain Cement Company Limited (Prosperity acquired 100% of Yingde Dragon Mountain Cement Company Limited on 13 April 2006) and 2.5Mt at Prosperity Conch Cement Company Limited (a 25% owned joint venture). These results were achieved despite the unusually severe weather in the period, while cement prices increased in September by 4.7%
Prosperity notes that cement manufacturing is trading well in the second half to date, with both volumes and prices ahead. The Board expects the Company’s results for the full year to be in line with current market expectations
Chairman and CEO, David Wong commented:
“These are Prosperity’s first results since it was listed on AIM in May of this year and during this period the Company has generated significant profits. Cement manufacturing has performed creditably despite bad weather. Iron ore trading, whilst experiencing difficult trading conditions, has contributed to profit albeit at a lower level than anticipated. This is testimony to the underlying strength and quality of the business and its people.
I am pleased to announce an interim dividend of 6 cents per share and confirm that myself and the other founding shareholder, who together hold 40.9% of the issued share capital, will waive their entitlement. This will result in a saving to Prosperity of $3.2 million. We continue to develop and invest in the Company and the outlook for our markets in the PRC is excellent. I look forward to the future with great confidence”.