China Shen Zhou 2006 net profit up 29% at 1.4 mln usd on non-ferrous sales

China Shen Zhou Mining & Resources Inc said 2006 net profit rose 29 pct to 1.4 mln usd on strong sales of non-ferrous products.

The company, which mines and processes zinc, lead, copper and other metals said 2006 revenue rose 218 pct to 22.4 mln usd.

"The year 2006 was a historic year for China Shen Zhou Mining. We entered the U.S. capital markets and executed two important acquisitions. Our business also experienced exceptional revenue, gross and net profit growth as we benefited greatly from the increases in nonferrous metal prices on top of our fixed prices for raw materials, which we previously locked in via a thirty-month futures contract," said Ms. Jessica Yu, CEO of China Shen Zhou Mining & Resources.

"While we are pleased that nonferrous market prices helped us realize revenue growth of over 200 percent and gross margin improvement to 59.9% from 39.1%, we are focused on a number of strategic initiatives that will position us for consistent, sustainable long-term growth. These initiatives include enhancing our processing capacity, increasing exploration activities and acquiring greater access to mineral resources."

China Shen Zhou Mining & Resources, Inc. conducts all of its business through its subsidiary, AFMG, which, in turn, conducts its business through its Subsidiaries.

The principal business of AFMG is the exploration, development, mining, and processing of fluorite, zinc, lead, copper, and other nonferrous metals in the PRC.

AFMG has two principal areas of interest in the PRC: (a) fluorite and zinc exploration in the Sumochaganaobao region of Inner Mongolia Province; and (b) copper/zinc exploration in the Yangye Huayuan region of Xinjiang Uygur Autonomous Region.