HONG KONG, Mar 28, 2020 - (ACN Newswire) - - Greentech Technology International Limited ("Greentech Technology" or the "Company", together with its subsidiaries the "Group"; stock code: 00195) is pleased to announce its audited annual results for the year ended 31 December 2019 ("reporting period").
During the reporting period, Greentech Technology saw a steady development in its tin mining and excavation business. Turnover and loss attributable to shareholders were HK$443,661,000 and HK$61,589,000 respectively. The loss was primarily attributable to an increase in the provision for rehabilitation in the sum of approximately AUD8 million, arising from the proposed closure of Mount Bischoff. Excluding this non-recurring item, gross profit and gross profit margin were HK$5,858,000 and 1.3%, respectively, representing year-on-year decreases of 59.7% and 2.1 percentage points respectively. The Board of Directors did not recommend payment of final dividend for the year ended 31 December 2019.
In 2019, the Group continued exploration work in the Renison underground mine to discover potential tin resources and reserves. Total production volume of tin metal of the Renison underground mine was 7,418 tonnes in 2019 (2018: 6,557 tonnes), representing a remarkable year-on-year increase of approximately 13%. YT Parksong Australia Holding Pty Limited ("YTPAH"), a non wholly-owned subsidiary of the Group which has 50% interest in the Renison underground mine, was entitled to 3,709 tonnes of tin metal (2018: 3,279 tonnes) available for sale. However, since market demand slumped when China-U.S. trade tension intensified, stagnant investment for Chinese electronic products and declined tin metal demand were witnessed, dragging international tin price. The annual average tin cash settlement price decreased by 7.5% year-on-year to USD18,643 per tonne. Turnover increased was due to an increase in production volume which was partly offset by a decrease in tin price during the year.
According to the Group's latest estimates of mineral resources, the contained tin within the Renison underground mine increased by 8% year-on-year to 285,100 tonnes. As at 10 December 2019, the measured, indicated and inferred mineral resources within the Renison underground mine was approximately 18,540,000 tonnes, with the grade of ore reaching 1.54%. Plentiful tin resources and high-grade ore excavated within the Renison underground mine created a solid foundation for the Group to further expand its production.
During the second half of 2019, there were discussions with external consultants and regulatory authorities relating to the closure plans of Mount Bischoff, which was placed into care and maintenance as the reserve had been depleted for a period of time. Currently, a proposed closure plan is expected to be submitted to the relevant regulatory or governmental authorities in Australia for approval in around mid-2020 the earliest.
During the reporting period, Greentech Technology continued to cement its close business partnership with Yunnan Tin Group Company Limited ("Yunnan Tin PRC"). The Group entered into an agreement with Yunnan Tin Australia TDK Resources Pty Ltd., a wholly-owned subsidiary of Yunnan Tin PRC on the renewal of tin supply contract through YTPAH, pursuant to which the Group will continue to provide tin to Yunnan Tin PRC until January 2022. Such arrangement will continuously contribute a stable and promising income to the Group.
Regarding the exploration work in the Renison underground mine in 2019, the Group discovered the Bell 50 region, where ongoing drilling confirmed that the high-grade Area 5 zone continues into the Bell 50 region. Going forward in 2020, the Group will target to excavate high-grade ore from the area and optimise the mining and excavating procdeures, with a view to expanding tin metal production.
Since the beginning of 2020, the coronavirus disease outbreak has posed negative impacts on the global economy, dragging the performance of the tin mining industry. Amidst growing market uncertainty, the Group will pay close attention to the potential impacts of the outbreak and promptly respond to the challenge, meanwhile adopting a prudent yet forward-looking development approach. The Group will refine mine management, optimise production efficiency of the three-stage crushing, screening and ore sorting plant and enhance efficiency, in hopes of consolidating its core competitiveness, thereby creating long-term value to the shareholders and investors.
About Greentech Technology International Limited
Greentech Technology is a non-ferrous resource company engaging in mining and sale of tin. The Group operates tin mining and excavation business in Tasmania, Australia, through joint venture YT Parksong Australia Holding Pty Limited (Greentech Technology and Yunnan Tin PRC hold 82% and 18% interests respectively). The Group and Yunnan Tin PRC jointly hold 50% interests in the Renison mine, the largest tin metal mine in Australia, Mount Bischoff open-cut tin project and Rentails tailings retreatment project, whilst the remaining 50% interests is hold by Metals X, a listed company in Australia. Yunnan Tin Australia TDK Resources Pty Ltd., a wholly-owned subsidiary of long-term partner Yunnan Tin PRC, has been the offtake purchaser of the tin concentrates produced by the Group since 2010.
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