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Terra Nostra Anticipates Strong Demand and High Prices for Stainless Steel
Jul 01, 08 08:56PM
Terra Nostra Resources Corporation (OTCBB: TNRO) a majority owner of two joint venture companies in the copper and stainless steel industries in China, is pleased to report that, based upon recent industry analysis, it anticipates sustained strong domestic demand for stainless steel in China.
“Our focus on the production of stainless steel for domestic sale has positioned Terra Nostra to take full advantage of China’s continuing strong economy and long-term plans for economic transformation and urban migration, without becoming overly exposed to the global economic turmoil that we have seen in recent months,” said George Chua, Chief Operating Officer of Terra Nostra. “We expect domestic prices for stainless steel to remain strong for the remainder of the year.
“The fundamental demand for steel and stainless steel products, both within the Chinese market and internationally, will allow Terra Nostra and other Chinese producers to offset the rising costs for raw materials, such as stainless steel scrap, nickel, and electricity,” concluded Chua.
Currently, one-hundred percent of Terra Nostra’s stainless steel production is sold within China, and a significant portion in the local Shandong Province market. Shandong, an important industrial and economic center, is strategically located on the east coast of China, between Beijing and Shanghai and is home to over 95 million people.
About Terra Nostra Resources Corporation
Terra Nostra is a leading copper and stainless steel producer in China through its 51% majority interests in two joint venture companies in China. Shandong Terra Nostra Jinpeng Metallurgical Co., Ltd. has an existing and under construction production capacity of 170,000 MT of refined copper, together with value-added copper rod and wire capabilities. Shandong Quanxin Stainless Steel Co., Ltd. operates a modern stainless steel production facility with a 230,000 MT capacity casting mill, and a 150,000 MT rolling mill. The two joint venture companies, with total assets in excess of US$263 million and over 1,000 employees, are located in the highly industrialized coastal province of Shandong, midway between Beijing and Shanghai. Terra Nostra has entered into an agreement to increase its direct majority ownership in both joint ventures from 51% to 90%. More information on Terra Nostra can be found at http://www.tnr-corp.com.
Forward Looking Statements
Except for the historical information contained herein, the matters set forth in this press release, including statements with respect to expectations concerning (i) projects underway or under consideration, including production capacity and completion schedules; (ii) business and future potential of Terra Nostra Resources Corporation ("TNRO"); (iii) estimates or implications of future earnings, profits, EBITDA, and the sensitivity of earnings to metals prices; (iv) estimates of future metals production, sales and profitability; (v) estimates of future cash flows, and the sensitivity of cash flows to the other metals and ore costs as well as, but not limited to, fluctuations in fuel prices, scrap prices, and the availability of both, and statements related to these matters or which use words such as "may," "might," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," and the negative of these terms and other comparable terminology are all forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Further risks, uncertainties and other factors, which affect the forward- looking statements included herein, and could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements include, but are not limited to, raising additional funds for working capital, obtaining final approval for tax holidays, metals price volatility, competition for projects, reserve acquisition costs, currency fluctuations, international economic uncertainty, sovereign risk, force majeure, changes in tax law or concession law, project scheduling delays, labor disputes, increased production costs and variances in ore grade, scrap grade or recovery rates from those assumed in production plans, political and operational risks in the countries in which TNRO may operate and governmental regulation and judicial outcomes, and other risks detailed from time to time in TNRO’s filings with the Securities and Exchange Commission, including its Quarterly Report on Form 10-QSB for the period ended February 29, 2008. Copies of each filing may be obtained from TNRO or the SEC. Furthermore, metals operation, by their very nature, entail inherent cyclical, sectoral, and commodity risk and could expose an investor to the entire loss of all capital invested. TNRO does not undertake any obligation to publicly release any revisions to any forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.