Business
Gulf Resources provides update on estimated 3rd and 4th Quarter Bromine and Crude Salt Sales and Profits
SHOUGUANG, China, Sept. 29, 2020 (GLOBE NEWSWIRE) -- Gulf Resources, Inc. (Nasdaq: GURE) ("Gulf Resources", “we,” or the "Company"), a leading manufacturer of
About this update from Gulf Resources, Inc.
[{"type":"text","content":"SHOUGUANG, China, Sept. 29, 2020 (GLOBE NEWSWIRE) -- Gulf Resources, Inc. (Nasdaq: GURE) (\"Gulf Resources\", “we,” or the \"Company\"), a leading manufacturer of bromine, crude salt and specialty chemical products in China, today provides update on 3rd and 4th Quarter Bromine and Crude Salt Sales and Profits.\n Gulf Resources has continued to ramp up production of bromine and crude salt in the third quarter. We currently estimate sales of bromine in terms of tonne will increase 60-65% over that of the second quarter. Each of the months has shown an increase, with the greatest increase occurring in September 2020. At the present time, bromine is priced at approximately $4,441 per metric tonne, compared to $3,672 per metric tonne at the end of the second quarter, representing an increase of 20.9%. Crude salt sales are expected to increase about 45% in the third quarter. Sales in the third quarter are estimated to be between 75,000 and 80,000 metric tonnes, compared to 53,532 in the second quarter. While the company does not make projections, based on the expected sales level and current pricing, these businesses should operate at break-even closely. The company is very pleased with the continuing progress being made in its bromine and crude salt facilities. The company expects that October 2020 will also be a good month in terms of bromine sales. November sales also expected to be strong, although it may be lower than October. December is likely to be seasonally weaker as customers reduce purchases of raw materials in advance of the Chinese New Year. As a reference, in 2015 and 2016, the third quarter contributed approximately 29.3% of bromine tonnes sold compared to 18.5% in the fourth quarter. In these two years, bromine sales in tonnes were approximately 58.6% higher in the third quarter than in the fourth quarter. In addition, crude salt production can be negatively impacted by cold weather. There is no way to predict the weather in December. In 2016, when the weather was mild, we sold more tonnes of crude salt than in any other quarter of the year. However, at this point in time, it is impossible to predict the weather for November and December. Given our assumptions that weather could impact crude salt sales and that customers are likely to reduce bromine purchases prior to the Chinese New Year, the company still believes i...