Author: Paul Ploumis
09 Oct 2014 Last updated at 05:42:51 GMT
JAKARTA (Scrap Monster): During the announcement of the company regarding the half year results on Wednesday, pin pointed on the pressures faced by the company, mainly due to the oversupply in the Chinese market as well as due to the creeping growth of the Chinese economy.
In the half year assessment of last year, the revenue of China Nickel Resources, decreased to 79 percent, to 201 million HK dollars, but at the same time the company’s investment rose to 170 percent, as a result of restructuring of convertible as well as senior bonds. The4 company then decided on undertaking plans to control the pressures for liquidity.
The company stated that, the price as well as the demand for steel remained low at that period of time. And the nickel export ban issued by Indonesia also led to a halt in the ore trading business of the company and it anticipated the effect of this phenomenon on the result for a year long. The company had expectation in the relaxation of mining rules in Indonesia, but had no hope in the disposal of nickel export ban in any time sooner.
The company stated that, there was a delay in the announcement of the result as it required more information for the company’s auditors. This additional information includes, mainly the legal opinions regarding disputes, cash flow projections as well as the litigation of the company. The company stated that, it is agonizing about the liquidity condition of the company.