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Century Global ends fiscal year with working capital of C$23.6 million

In its fiscal year-end results ending March 31, 2018, the company reported it had C$23.6mln, which included cash and bank deposits.
Century Global ends fiscal year with working capital of C$23.6 million
The company's food business is expanding in both Hong Kong and Macau

China-focused Century Global Commodities Corporation (TSE:CNT), which has a food and an iron ore business, reported a "substantial" working capital today in its fiscal 2018 results, ending March 31, 2018. 

The company said it had C$23.6mln, which included cash, bank deposits and an investment portfolio of C$12.9mln, which was not tied to any funding commitment for any project development.

On the iron ore business, the firm noted that in fiscal 2017-2018, monthly average iron ore prices ranged from US$69.97/t and US$69.70/t. They added that while monthly price averages appear flat over the 12-month period, they actually fluctuated significantly, hitting highs of about US$80/t and lows of about US$60/t.

"After coming off a recent spot price peak approaching US$80/t in mid-January 2018, iron ore has been trading around US$65/t during most of June 2018," it said. 

"We believe it is prudent to continue our market observer position, while maintaining a small, lean mining team ready to advance our iron ore projects rapidly when the market recovers adequately."

READ: Century Global Commodities unveils plan to spin out Century Metals Inc

Elsewhere, the results of a Fall 2017 exploration program on claims acquired from the Canadian government, confirmed the character of this early stage project, the firm said.

This is sufficient to warrant a further staged exploration program designed to identify, prioritise and test exploration targets on the three separate claim groups, it said.

In June, the company announced it is planning a spin-out transaction, where a portion of the shares of its wholly owned subsidiary, Century Metals, will be distributed pro-rata to shareholders of Century, by way of a dividend-in-kind.

This is expected to take place during the second quarter and is subject to approval of the listing of Century Metals' common shares on the TSX Venture Exchange.

On the food business side, Century said: "Century's professional food marketing team in Hong Kong continued to expand our quality food marketing and distribution network in both Hong Kong and Macau over a range of accounts with major supermarket chains, hotels, restaurants and major international airline food service providers."

The company said on the food supply side, it continued to grow its base by introducing new Australian and European meat brands to the local markets, increasing supermarket shelf space for its expanding product range.

In parallel with the development of the Hong Kong food distribution business the company said it is working with a local partner to operate two small pilot restaurant stores in Wuhan (population of over 10mln) and in Chongqing (population of over 30mln).

The loss for the 12 months to March 31 was C$4.10mln, versus a loss of C$6.12mln in 2017. 

Shares of Century Global were down 15.8% on Thursday at C$0.16. 

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