Chinese potash producer Migao preparing to increase capacity by 20 per cent

The Canadian Press ~ The News
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TORONTO — Migao Corp. (TSX:MGO) reports its annual profit rose to $38.3 million for the 12 months ended March 31, a new year-end for the China-based potash fertilizer producer.

The annual profit amounted to 79 cents per diluted share, while revenue for the period increased to $269.1 million.

Migao didn’t compare the figures with the year-earlier results, citing the change of year-end from Sept. 30 to March 31.

“We are very proud of our performance during the continued challenging times during fiscal 2010. It wasn’t until late in calendar 2009 that we saw the signs of a recovering marketplace,” said Liu Guocai, Migao’s president and CEO.

For the three-month period ended March 31, Migao reported sales of $75.5 million compared to $67.0 million in the previous quarter ended Dec. 31, 2009.

“We have reactivated our construction activities in China to add approximately 20 per cent more production capacity of our core products. These construction products will be completed by the end of calendar 2010 and begin producing revenue in early calendar 2011.”

The company is building a potassium sulphate facility near Shanghai and potassium nitrate facility, through a 50/50 joint venture with Chile’s SQM, at the Sichuan Migao property.

“In addition, we added a 100,000 tonne per year specialty compounding facility which contributed revenue in our recent fourth quarter,” Guocai said.

In the six-month period ended March 31, 2009, the company earned $24.6 million or 55 cents per diluted share.

In the 12 months ended Sept 30, 2008, Migao’s net income was $27.3 million or 63 cents per diluted share, with $187 million of revenue.

Organizations: TSX

Geographic location: TORONTO, China, Shanghai Chile

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