CITIC Dameng expects to turn losses into gains in H1 2017

‍‍CITIC Dameng (“the company”, stock code: 01091) announced that they expect to see profits attributable to owners of the company in H1 2017, comparing to the losses of HKD137 million attributable to owners of parent company in H1 2016.

According to the announcement, the increased market prices for manganese products mainly helped the company to turn losses into gains; besides, the sales of manganese products also increased. Therefore, it is expected that the gross profit rate and gross contribution of the company’s main products, electrolytic manganese metal and manganese briquettes, will increase substantially in H1 2017. In early 2017, Gabon project restarted operation and sales and is expected to generate operation profits in H1 2017 comparing to the losses in H1 2016.

However, the influence from the above-mentioned favorable factors is partially offset by the following events. On May 2017, the affiliated company, China Polymetallic Mining Limited (“CPM” stock code: 02133), issued a private placement of 20% of its shares. As a result, the company’s stake of CPM diluted from 29.81% to 24.84%, causing a non-cash flow loss of HKD70 million.