Gulf Resources provides update on estimated 3rd and 4th Quarter Bromine and Crude Salt Sales and Profits
SHOUGUANG, China, Sept. 29, 2020 (GLOBE NEWSWIRE) -- Gulf Resources, Inc. (Nasdaq: GURE) ("Gulf Resources", “we,” or the "Company"), a leading manufacturer of bromine, crude salt and specialty chemical products in China, today provides update on 3rd and 4th Quarter Bromine and Crude Salt Sales and Profits.
Gulf Resources has continued to ramp up production of bromine and crude salt in the third quarter. We currently estimate sales of bromine in terms of tonne will increase 60-65% over that of the second quarter. Each of the months has shown an increase, with the greatest increase occurring in September 2020.
At the present time, bromine is priced at approximately $4,441 per metric tonne, compared to $3,672 per metric tonne at the end of the second quarter, representing an increase of 20.9%.
Crude salt sales are expected to increase about 45% in the third quarter. Sales in the third quarter are estimated to be between 75,000 and 80,000 metric tonnes, compared to 53,532 in the second quarter.
While the company does not make projections, based on the expected sales level and current pricing, these businesses should operate at break-even closely. The company is very pleased with the continuing progress being made in its bromine and crude salt facilities.
The company expects that October 2020 will also be a good month in terms of bromine sales. November sales also expected to be strong, although it may be lower than October.
December is likely to be seasonally weaker as customers reduce purchases of raw materials in advance of the Chinese New Year. As a reference, in 2015 and 2016, the third quarter contributed approximately 29.3% of bromine tonnes sold compared to 18.5% in the fourth quarter. In these two years, bromine sales in tonnes were approximately 58.6% higher in the third quarter than in the fourth quarter.
In addition, crude salt production can be negatively impacted by cold weather. There is no way to predict the weather in December. In 2016, when the weather was mild, we sold more tonnes of crude salt than in any other quarter of the year. However, at this point in time, it is impossible to predict the weather for November and December.
Given our assumptions that weather could impact crude salt sales and that customers are likely to reduce bromine purchases prior to the Chinese New Year, the company still believes it may operate are break-even closely.
The company plans to report 2020 third quarter results around mid-November, 2020.
About Gulf Resources, Inc.
Gulf Resources, Inc. operates through three wholly-owned subsidiaries, Shouguang City Haoyuan Chemical Company Limited ("SCHC"), Shouguang Yuxin Chemical Industry Co., Limited ("SYCI"), and Daying County Haoyuan Chemical Company Limited (“DCHC”). The Company believes that it is one of the largest producers of bromine in China. Elemental Bromine is used to manufacture a wide variety of compounds utilized in industry and agriculture. Through SYCI, the Company manufactures chemical products utilized in a variety of applications, including oil and gas field explorations and papermaking chemical agents, and materials for human and animal antibiotics. DCHC was established to further explore and develop natural gas and brine resources (including bromine and crude salt) in China. For more information, visit www.gulfresourcesinc.com.
Certain statements in this news release contain forward-looking information about Gulf Resources and its subsidiaries business and products within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. The actual results may differ materially depending on a number of risk factors including, but not limited to, the general economic and business conditions in the PRC, the risks associated with the COVID-19 pandemic outbreak, future product development and production capabilities, shipments to end customers, market acceptance of new and existing products, additional competition from existing and new competitors for bromine and other oilfield and power production chemicals, changes in technology, the ability to make future bromine asset purchases, and various other factors beyond its control. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risks factors detailed in the Company's reports filed with the Securities and Exchange Commission. Gulf Resources undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.
CONTACT: Gulf Resources, Inc.
|Director of Investor Relations|
|Helen Xu (Haiyan Xu)|
© 2020 GlobeNewswire, Inc. All Rights Reserved.