CAA Resources Limited (Stock Code: 2112.HK) is a rapidly growing iron ore product company mining and selling high-quality mineral products to leading steel manufacturers in the People’s Republic of China.
Based in Pahang, Malaysia, CAA Resources combines its low-cost open-pit operation technology, key relationships with mining industry personnel in the PRC, and highly experienced management to capture the vast opportunities arising from the explosive growth of the iron ore market in China. Our close proximity to the PRC as compared to iron ore suppliers in Australia, India, South Africa and Brazil also gives CAA Resources a competitive edge over these companies.
CAA Resources’ premier mine is Project Ibam, among the most fertile and iron-rich mines in Malaysia with a certified Total Probable Reserve of 105 Megatons (Mt) and an average of 44.8 percent total iron (Fe) content – far higher than the 30 percent average total iron content prevalent in Chinese iron ores. Project Ibam, which accounted for 44 percent of CAA Resources’ revenue in 2013, is expected to increase its annual iron ore production by 160 percent within two years and be active for at least 27 years.
Spurred by the significant increase in our iron ore production and spiraling iron ore prices in China, our 2013 revenue soared 103 percent to USD 110,372,000, as compared to USD 54,323,000 in 2012. Profit for the year for 2013 was USD 19,745,000, a 90 percent improvement from USD 10,404,000 recorded for 2012. We expect that in 2014, CAA would continue to benefit from the growth of the Chinese economy as well as the strong Chinese demand for iron ore products.
For the year ended 31 December 2013, the Group achieved revenue of USD 110,372,000, a 103 percent improvement from USD 54,323,000 recorded for 2012. This increase was mainly due to the rising demand for the Group’s iron ore products from its China customers.
CAA sold 1,053 ,000 tons of iron ore products on dry basis in 2013 as compared to 429,000 tons in 2012, representing a 146 percent increase. Products sold had an average iron ore grade of 56.6 percent and average selling price of USD103 per ton on dry basis.
Benefiting from this higher sales volume, CAA’s 2013 profit for the year reached USD 19,745,000, a 90 percent improvement from the USD 10,404,000 achieved in 2012.
In 2014, CAA should continue to benefit from the growth of the Chinese economy as well as the strong Chinese demand in iron ore products. With the completion of the expansion plans at the Ibam Mine, the company should be optimally prepared to meet this expected increase in demand. CAA also plans to acquire a series of iron-rich mines in Malaysia, adding further to its sustainable growth.