During the third quarter of 2012, China Shen Zhou's sales volume of fluorite powder reached approximately 15,800 metric tons, an increase of approximately 7,000 metric tons from the same period of 2011. Copper concentrate powder sales volume increased to 139 metal tons from 13 metal tons in the same period of 2011.
Gross profit was US$273,000 compared with $2.9 million in the third quarter of 2011. Decrease in gross profit was mainly due to lower selling price of fluorite powder. The fluorite powder sales price decreased 39% year-over-year to approximately $235 permetric ton in the third quarter of 2012.
In its nine month report, net revenues for the first nine months ended September 30, 2012, were approximately US$16.5 million compared with US$18.1 million during the same period in 2011. The decrease was due to the decline in sales price for fluorite powder. The fluorite powder sales price for the nine months ended September 30, 2012, was approximate US$248 per metric ton, a US$91 per metric ton or 27% decrease compared with the same period of 2011.
Gross profit for the first nine months ended September 30, 2012, was approximately US$2.3 million compared with US$7.9 million in the same period of 2011. Gross profit from the fluorite segment was approximately US$2,416,000 and US$7,483,000 for the first nine months ended September 30, 2012, and 2011, respectively. The decrease in gross profit for the fluorite segment was mainly due to the decline in sales price of fluorite powder. Gross profit margin was approximately 14% for the nine months ended September 30, 2012.
