PINGDINGSHAN, China, Aug. 28, 2014 (GLOBE NEWSWIRE) -- SinoCoking Coal and Coke Chemical Industries, Inc. (Nasdaq:SCOK) ("the Company" or "SinoCoking"), a vertically-integrated coal and coke processor, today said that its gross profit from sales of synthetic gas (syngas) produced at the Company's new clean coal facility in Pingdingshan will be from $10 to $15 million in 2015.
This estimate, said the company, is based upon sales of syngas at an average price of about $0.12 per cubic meter, with 24x7 production and gross margins of approximately 40 percent.
Syngas is a clean-burning fuel that can also be used to produce fertilizers, solvents and assorted synthetic materials. At full capacity, SinoCoking's new facility is expected to produce 25,000 cubic meters of syngas per hour, among the highest outputs in China.
The facility, due to open next month, is also one of the few in China that will capture the considerable volume of carbon dioxide gas (CO2) emitted during the production of syngas. This CO2 will be converted to ammonium bicarbonate, a common farm fertilizer, and sold to various outlets in China, said the company.
"We are proud and excited to be so close to completing this new clean energy facility," said SinoCoking Chairman and CEO Mr. Jianhua Lv. "With its opening, we will make the leap from being a producer of coal and coke products to one of China's top producers of clean-burning fuel.
"This transition, we expect, will both assist our nation in battling its widespread and crippling pollution problems, as well as bring considerably greater value to our shares."
Pending shareholder approval, SinoCoking will be renamed Clean Synthetic Technologies Corp., a name chosen to reflect the Company's new emphasis on the production of clean energy products.
SinoCoking and Coke Chemical Industries, Inc. (www.scokchina.com), a Florida corporation, is a vertically-integrated coal and coke processor that uses coal from both its own mines and that of third-party mines to produce basic and value-added coal products for steel manufacturers, power generators, and various industrial users. SinoCoking has been producing metallurgical coke since 2002, and acts as a key supplier to regional steel producers in central China. SinoCoking also produces and supplies thermal coal to its customers in central China. SinoCoking currently owns its assets and conducts its operations through its subsidiaries, Top Favour Limited and PingdingshanHongyuan Energy Science and Technology Development Co., Ltd., and its affiliated companies, Henan Province PingdingshanHongli Coal & Coke Co., Ltd., Baofeng Coking Factory, BaofengHongchang Coal Co., Ltd., BaofengHongguang Environment Protection Electricity Generating Co., Ltd., Zhonghong Energy Investment Company, Henan Hongyuan Coal Seam Gas Engineering Technology Co., Ltd., BaofengShuangri Coal Mining Co., Ltd., and BaofengXingsheng Coal Mining Co., Ltd.
For further information about SinoCoking, please refer to our periodic reports filed with the Securities and Exchange Commission.
Forward Looking Statements
This press release contains forward-looking statements, particularly as related to, among other things, the business plans of the Company, statements relating to goals, plans and projections regarding the Company's financial position and business strategy. The words or phrases "plans," "would be," "will allow," "intends to," "may result," "are expected to," "will continue," "anticipates," "expects," "estimate," "project," "indicate," "could," "potentially," "should," "believe," "think," "considers" or similar expressions are intended to identify "forward-looking statements." These forward-looking statements fall within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934 and are subject to the safe harbor created by these sections. Actual results could differ materially from those projected in the forward-looking statements as a result of a number of risks and uncertainties. Such forward-looking statements are based on current expectations, involve known and unknown risks, a reliance on third parties for information, transactions or orders that may be cancelled, and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties related to the fluctuation of local, regional, and global economic conditions, the performance of management and our employees, our ability to obtain financing, competition, general economic conditions and other factors that are detailed in our periodic reports and on documents we file from time to time with the Securities and Exchange Commission. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company cautions readers not to place undue reliance on such statements. The Company does not undertake, and the Company specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such statement. Actual results may differ materially from the Company's expectations and estimates. The Company provides no assurances that any potential acquisitions will actually be consummated, or if consummated that such acquisitions will be on terms and conditions anticipated on the date of this press release, and the Company makes no assurances with regard to any results of any such acquisitions.
|SinoCoking||Investor Relations Counsel:|
|Song Lv, Chief Financial Officer||Rick Eisenberg, Asia IR•PR.|
|+ 86-375-2882-999||(212) 496-6828|
Source:SinoCoking Coal and Coke Chemical Industries. Inc.