TORONTO, ONTARIO–(Marketwired – June 26, 2017) –
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS AGENCIES
Century Global Commodities Corporation (TSX:CNT) (“Century” or the “Company”) is pleased to announce that it has filed its consolidated financial statements for the year ended March 31, 2017 and the related management discussion and analysis (“MD&A”) as well as the Annual Information Form (“AIF”). Copies of these documents may be obtained under Century’s SEDAR profile at www.sedar.com and will be posted on Century’s website at www.centuryglobal.ca.
The Company reported substantial working capital of $29.7 million, comprised of cash, bank deposits and an investment portfolio of $19.3 million (not tied to any funding commitment for any project development), a net receivable of $10.1 million, and accounts payable of $0.9 million as at March 31, 2017.
We continue to support our large portfolio of strong iron ore assets. Recovery was strong in the fiscal year, with iron ore spot prices remaining steadily at an average about US$87/t in March 2017. However, the iron ore price has since declined to about US$60/t on average in May and below US$60/t into June. We believe it is prudent to maintain our market observer position for our iron ore business while maintaining a small, lean mining team ready to advance our projects rapidly when the market recovers adequately.
In the meantime, we are diversifying into new international business areas where we can capitalize on management’s core competence, developed and accumulated over the past few years. This ensures that over time, our shareholders will benefit from both our iron ore and non-iron ore businesses.
As China’s economy moves from a fixed-asset investment development stage to a consumer orientation, it is creating the world’s largest and rapidly expanding middle-class population. As a result, the demand for high-quality and healthy food has been growing tremendously. This is still in the early stages and is expected to continue to grow for decades to come, at a rate well beyond the experience of the mineral commodity sector.
Building on our knowledge base as a market-driven mining company, we are capitalizing on our strengths, network and understanding of this unprecedented major emerging market opportunity. We have successfully established a foothold in Hong Kong and Macau. From there, we plan to grow the business over time into Mainland China’s massive new consumer market, an opportunity of global and historical scale.
Over the past year, Century Food established a professional marketing team and built marketing and distribution network in Hong Kong and Macau over a range of blue chip accounts with major supermarket chains (reaching about 250 stores), hotels, restaurants and an international airline.
On the supply side, in addition to last year’s exclusive distributorship agreement with Sunny Queen, a reputable Australian egg producer, we have expanded our product range successfully to premium and organic meat products from Australia and Europe. Our achievement in establishing a thriving marketing and distribution network covering some strong international brands has attracted additional international suppliers, bringing more product opportunities that will form the basis of continued growth.
| Period | Sales (C$) | |
| Fiscal year 2015-16 sales began: | ||
| Jan – Mar, 2016 | 87,165 | |
| Year ended Mar 31, 2016 | 87,165 | |
| Fiscal year 2016-17: | ||
| Apr – Jun, 2016 | 131,255 | |
| Jul – Sep, 2016 | 349,217 | |
| Oct – Dec, 2016 | 419,321 | |
| Jan – Mar, 2017 | 525,631 | |
| Full Year | 1,425,424 |
In parallel with the development of the Hong Kong food business, we established a start-up operation in Wuhan, in the province of Hubei in Central China, where economic growth has been stronger. We continue to study and test the local market there and formulate a strategy to grow the business, focusing on providing quality food products to consumers in the region.
Administrative expenses during the initial start-up years were higher, as expected when we were investing in setting up operational infrastructure and our team was going through the necessary learning curve. Our Hong Kong operation was successfully established, delivering a 25% gross margin contribution on growing sales revenues to the segment as we establish ourselves in China.
In addition, our Mining Database won the Canada China Business Council’s Silver Award for Professional, Scientific and Technical Services in December 2016. This is a significant recognition of our work and encouragement for our hard-working team.
We are pleased to see the rebound of our share price at the beginning of 2017. We hope that the market will, in due course, recognize our continued efforts to create value for the company: more than $29 million in cash and receivables at the end of the fourth quarter; our iron ore assets; the food business; and the potential of other initiatives we are undertaking.
About Century
Century Global Commodities Corporation (TSX:CNT) is building shareholder value through existing and entrepreneurial business units that meet continuing and growing demand from China, the largest market in human history.
Mining and Investment
Iron Ore
With WISCO and Minmetals, both Global Fortune 500 Chinese strategic partners, Century owns one of the largest iron ore mineral resource bases in the world, across five projects in Quebec and Newfoundland and Labrador. Joyce Lake, a direct shipping ore project in Newfoundland and Labrador is our most advanced project. It has completed feasibility and permitting studies and can be brought to production within approximately 30 months. We are maintaining our properties in preparation for a return to higher iron ore prices.
Base and Precious Metals investment
Century is monitoring investment and acquisition opportunities. When the right opportunity presents itself, our strong balance sheet will allow us to invest or acquire undervalued assets during the current down-cycle, positioning ourselves for gains when the market improves.
Food
Quality food products sourced from advanced countries are in great demand from the quickly-growing middle class in China. The emphasis is on the need for safe, high-quality food products. Century has established a professional marketing team and built a distribution system to serve Hong Kong and eventually throughout China. Initial successes include contracts with one of the largest egg producers in Australia and supply contracts with hotels, restaurants, grocery chains as well as an international airline.
Business Development
Century’s award-winning team has harnessed multidisciplinary expertise to build a proprietary bilingual Chinese/English mining investment evaluation and tracking system. The database tracks daily over 1,500 globally listed mining and mineral resource companies with a primary focus on their 3,000 gold and copper projects. We are now commercializing the technology for use by retail and institutional investors as well as mining professionals worldwide. Century Mining Database can be accessed via www.centurymining.cn.
Century’s website is www.centuryglobal.ca.
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
THIS PRESS RELEASE CONTAINS “FORWARD-LOOKING INFORMATION” WITHIN THE MEANING OF CANADIAN SECURITIES LEGISLATION. THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF CENTURY AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. FORWARD-LOOKING INFORMATION INCLUDES INFORMATION THAT RELATES TO, AMONG OTHER THINGS, CENTURY’S INTENTION TO EVALUATE PROSPECTIVE TRANSACTIONS ARISING FROM THE REVIEW BY CENTURY OF ITS STRATEGIC OPTIONS AND ITS AVAILABLE WORKING CAPITAL. FORWARD-LOOKING INFORMATION IS BASED ON, AMONG OTHER THINGS, OPINIONS, ASSUMPTIONS, ESTIMATES AND ANALYSES THAT, WHILE CONSIDERED REASONABLE BY CENTURY AT THE DATE THE FORWARD-LOOKING INFORMATION IS PROVIDED, ARE INHERENTLY SUBJECT TO SIGNIFICANT RISKS, UNCERTAINTIES, CONTINGENCIES AND OTHER FACTORS THAT MAY CAUSE ACTUAL RESULTS AND EVENTS TO BE MATERIALLY DIFFERENT FROM THOSE EXPRESSED OR IMPLIED BY THE FORWARD-LOOKING INFORMATION. THE RISKS, UNCERTAINTIES, CONTINGENCIES AND OTHER FACTORS THAT MAY CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED BY THE FORWARD-LOOKING INFORMATION MAY INCLUDE, BUT ARE NOT LIMITED TO, RISKS GENERALLY ASSOCIATED WITH CENTURY’S BUSINESS, AS DESCRIBED IN CENTURY’S ANNUAL INFORMATION FORM FOR THE YEAR ENDED MARCH 31, 2017. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE CENTURY MAY ELECT TO DO SO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.
Sandy Chim
President & CEO
416-977-3188, ext. 109
[email protected]
www.centuryglobal.ca
