SOURCE: CAA Resources

CAA Resources

April 09, 2014 07:30 ET

CAA Resources Q1 Revenue up 519% to USD 51.4 Million

HONG KONG, CHINA--(Marketwired - Apr 9, 2014) - CAA Resources Limited (HKSE: 2112), a Malaysia-based iron ore producer supplying leading steel manufacturers in China, today announced that, for the three months ended March 31, 2014, the company achieved revenues of USD 51.4 million, a 519% increase on revenue of USD 8.3 million in the first quarter of 2013.

The company had sales volumes of iron ore products of 484,000 tons (on dry basis) in Q1 2014, an increase of 656% on the sales volume of 64,000 tons (on dry basis) achieved in the same period in 2013.

As is traditional with Hong Kong-exchange listed companies, earnings data will be announced with the company's six-month report.

"We are very proud of our first quarter results," said CAA Chairman Mr. Yang Li. "Despite a challenging market environment, CAA was successful in leveraging its lower-cost, superior-quality and environmentally-friendly products to our expanding steel mill customer base in the Peoples Republic of China. In addition, our close proximity to the PRC compared to our more distant competitors also enabled us to accelerate our competitive advantage with pricing.

"Looking ahead, we intend to focus on enhancing operating capacity through existing project expansion as well as potential acquisitions. We also plan to continue our development of value-added products in order to meet increasingly discerning Chinese demand. Accomplishing these objectives will help us to drive future sales and profitability."

Investors wishing to receive CAA's corporate communications as they become available may go to http://irdirect.net/2112/corporate_overview and register under Email Alerts.

Investors seeking expanded coverage of CAA may also go to http://companyspotlight.com/114557/caa-resources-ltd.

About CAA Resources

CAA (www.caa-resources.com) holds extraction rights to significant and high-quality iron ore reserves in Malaysia's Pahang State. The company's open pit mine is located in close proximity to coastal shipping facilities which in turn offer lower production costs and shorter sea transportation routes to China compared to other resource-endowed countries such as Australia, Brazil or India. The high quality of its reserves, low-cost production methods and efficient transportation combine to make CAA a highly competitive supplier, primarily to the China market.

In the year ended December 31, 2013, CAA Resources' revenue grew 103% to USD 110.4 million and earnings increased 90% to USD 19.7 million, while sales volume increased 145% to 1,053,000 tons.

Forward-Looking Statements

This press release is for information purposes only and contains certain forward-looking statements which, by their nature, involve risk and uncertainty because they relate to or depend upon future events and circumstances. There are a number of factors which could cause actual results and developments to differ materially from those expressed or implied by these forward looking statements, including a number of factors outside CAA Resources' control. All forward-looking statements are based upon information known to CAA Resources on the date of this announcement and no representation or warranty is given in relation to them, including as to their completeness or accuracy or the basis on which they were prepared. CAA Resources gives no undertaking to update forward-looking statements whether as a result of new information, future events or otherwise. Information contained in this announcement relating to CAA Resources should not be relied upon as an indicator of future performance.

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