China Tracker - Details for U.S. China Mining Group (SGZHE)

 U.S. China Mining Group
Shares Outstanding (MRQ): 18.90 mill
New Shares / Dilution (TTM): 3.55 mill23.16% 
Cash (MRQ): 46.22 mill0.00%
Account Receivables (MRQ): 0.21 mill0.00%
Account Receivables (Q/Q): + 0.08 mill  
Long-Term Debt (MRQ): 4.55 mill0.00%
Revenue Growth (Q/Q): 60.47% 
Revenue Growth (Y/Y): 165.45%
Net Income Growth (Q/Q): 45.22% 
Net Income Growth (Y/Y): 489.85%
EPS Growth (Y/Y): 378.94%
Net Margin (Q/Q): 19.5% (21.6%)-2.10% 
Net Margin (Y/Y): 19.5% (8.8%)10.70% 
EPS | P/E (2 MRQ Projection): $1.000.00 
CFPS | P/CF (2 MRQ Projection): $1.810.00 
Price/Sales (2 MRQ Projection): 0.00
Price/Book (MRQ): 0.00 
Auditor: Goldman Parks Kurland Mohidin
 
 Forward Projections (Fiscal Year)
EPS | P/E (Estimates updated 2011-08-19): $0.680.00 
 Basic Facts and History (show more)
Reporting Type: U.S. Company (10-K Filings) 
Going Public: Reverse Merger on 2003-09-29 

 Business Outlook

Management is revising financial guidance for 2011 and now expects $75 to 80 million of revenues and $13 to $14 million in net income, exclusive of non-cash items and non-recurring expense items. The reason for the adjustment is due to 1) unanticipated new government fees and taxes levied to the industry, 2) additional repair expenses for existing mines which are above budget, and 3) lower growth expectations for our coal sorting business due to railway transportation shortages and increased expenses of outsourcing coal.

"While the second quarter has delivered several challenges, we believe these short term setbacks will have little impact on our ability to organically grow our coal production and brokerage business this year. We are well capitalized and intently focused on completing the Guizhou acquisition in the near term which will meaningfully increase both our coal reserves and production capacity, while capitalizing on higher market prices to drive incremental revenue and net income growth."

The Company continues to make progress on the acquisition target located in Guizhou province, which is estimated to have approximately 18 million tons of proven coal reserves and rights to produce 300,000 tons of coal per year. US China Mining made a $4.6 million refundable advance into an escrow account, which is fully refundable if the acquisition is not consummated. In order to satisfy a key component of the acquisition condition, the existing owner of the Guizhou mine recently reorganized the legal structure of the property to be suitable for acquisition while completing the necessary infrastructure upgrade to be compliant. Testing is underway and the local mining and safety authorities are going through the approval process. This safety and operating approval is the only outstanding item needed to complete the acquisition and the management is targeting a fall 2011 closing date.

(Source: PR Newswire, 2011-08-15)

Management reaffirmed its prior guidance of $95.7 million of revenues and $20.3 million of net income for the full year 2011. "We continue to look for attractive acquisition opportunities that will boost our production and reserves. The opportunity Guizhou provides is geographic diversification and thermal coal with high quality heat content. Our strong capital position positions us well to be disciplined in our acquisitions. We are currently conducting due diligence in China and abroad. We also remain confident in achieving our 2011 financial targets entirely through organic growth."

(Source: PR Newswire, 2011-05-16)

US China Mining Company owns 3 mines in two separate locations in Heilongjiang province which produces high grade thermal coal used to produce energy. The Company currently has approximately 20 million tons of reserves. Production will ramp throughout 2011 and management anticipates 830,000 tons will be mined and sold generating approximately $40 million in revenues. While the Xing An mine is currently approved for 600,000 tons of annual capacity, once the retrofit is completed management will submit requests to relevant provincial mining authorities to increase annual output approval to 900,000 tons.

The Company's coal brokerage and coal sorting are complementary in that they leverage a key asset, which is close proximity to railway access and an installed customer base of large Thermal Energy Power Plants, to increase total tons of coal sold. The brokerage business purchases coal from very small producers, consolidates and ships by railcar to the end customer. Management expects to generate over $33 million in revenues by selling 680,000 tons through coal brokerage. Sorting takes low grade coal from Inner Mongolia, processes and separates the impurities to create compliant coal, and then ships it by railcar to customers. The coal sorting business is expected to contribute $22.5 million in revenues for 2011, or approximately 25% of the total forecast, by processing 500,000 tons through this method.

"We have ramped production at the Xing An Mines and are now operating at full capacity, a move which in combination with sorting and brokerage will enable us to meet our 2011 forecast for $95.7 million in revenues and net income of $20.3 million. Our strong cash balance and positive cash flow provide enhanced flexibility when negotiating for acquisitions, especially with under-capitalized producers. We are currently in due diligence with assets both in China and abroad. Our 2011 goals including expanding both our coal reserves and production capabilities as enhance our position as an established operator."

(Source: PR Newswire, 2011-03-31)

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SGZHE
Coal
SCORE
6
READ: Score Cards Explained
SAFETY/RISK SCORE
HIGH RISK
DETAILS: Safety/Risk Model for SGZHE
Current Price:  n/a
F10k Day (2004-02-13): -100.00%$2.00
2009 Close: -100.00%$8.11
2010 Close: -100.00%$6.36
2011 Close: -100.00%$1.10
High (2012-02-02): -100.00%$1.20
Low (2012-02-21): -100.00%$0.13
Exchange: N/A
Market Capitalization: n/a
Total Shares: 18.90 mill
Float: n/a
Avg Volume: n/a
Last Quarter: 2010-12-31
Revenue (MRQ): 28.65 mill
Net Income (MRQ): 5.59 mill
Op. Cash Flow (MRQ): 10.35 mill
all financial data provided without warranty