China Natural Resources, Inc. (CHNR) stock prices were up by a confidence-inspiring 9.79% at the end of the trading day on April 23rd, 2021, bringing the price per share up to USD$1.57.
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CHNR at the Onset of Pandemic
CHNR was one of the many businesses the world over that was heavily impacted by the onset of the Covid-19 pandemic. The company’s financials suffered as it scrambled to ensure the health and safety of its workforce while it complied with the dynamic government regulations and health policies.
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The pandemic also significantly hindered the company’s diversifying foray into healthcare and other synthetic resource sectors. With plummeting revenues, the company worked to adjust their expenses accordingly in a bid to stay afloat during such tumultuous times. The company cease the trading of its copper ore and strove to streamline the short-term leveraging of its working capital.
Financial Reports Before and During the Pandemic
Having adapted the way it did, CHNR reported earnings of USD$0.14 per share in 2020, an impressive feat given the obstacles of the pandemic and the reporting of a loss per share of USD$0.035 in 2019. Revenues for 2020, however, were down to USD$1.052 million from the USD$1.986 million reported for 2019. Gross profits for 2020 were also reported at a meagre USD$2,000, a massive decrease from the USD$33,000 reported in 2019.
Capital Generation via Offerings
In an effort to generate capital during the pandemic, the company announced a registered direct offering of 3,960,000 shares of its common stock. The shares were priced at USD$1.85 each with proceeds amounting to USD$7.3 million. Concurrently, CHNR issued warrants that were initially exercisable for the purchase of an addition 1,584,000 shares of its common stock. These were priced at USD$2.35 per share, and have a term spanning 36 months from the date the warrants were issued. Proceeds are expected to be allocated towards general corporate purposes to keep the suffering company afloat during the pandemic.
CHNR Invests in Feishang
CHNR continues to expand its footprint in the mining sector, having recently acquired an 8.7% stake in Feishang Anthracite Resources Ltd. Feishang focuses on the mining and sale of anthracite coal that it extracts from anthracite coal mines that it acquires, constructs and develops. This provides diversified access to new capital markets and, therefore, new opportunities for strategic investments for CHNR. To further consolidate such future opportunities, the company has expanded its workforce to include various highly qualified employees, including two new vice presidents.
Hopeful Outlook for CHNR
The company has put the worst behind it since the pandemic took hold of the world and is hopeful for a brighter 2021 and beyond. The company proved competence in the way it adapted to the pandemic while still facilitating future growth, which, in conjunction with the capital they have raised through their offerings, primes CHNR for promising growth. Investors are keen to see how the company continues to grow as global immunization efforts are underway, with confidence in the company’s ability to facilitate gains in shareholder value.