Did you know?
You can earn activity points by filling your profile with information about yourself (what city you live in, your favorite team, blogs etc.)
Terra Nostra Chairman of the Board Reports to Shareholders
Jun 27, 08 10:06AM
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 provide all shareholders with this report from Terra Nostra’s Chairman, Mr. Sun Liu James Po, as presented at the Company’s Annual General Meeting held June 23, 2008.
Report to Shareholders
This has been an extraordinary year for Terra Nostra, where we achieved a number of our key objectives and have made considerable progress on others. With these accomplishments, we believe the road map to realize the full potential of our Company and the means to achieve it are well established.
The most significant event for the Company during this past year was the December 2007 completion of a $24,925,000 round of financing through convertible debentures. The proceeds from this financing were primarily used to complete Terra Nostra’s capital contribution of $27,234,000 into our copper joint-venture. This, together with the $13,566,000 capital contribution into our stainless steel joint-venture, completed in June 2006, fully secured the Company’s rights under the joint-venture agreements and Chinese joint-venture law. This has created a strong foundation for taking the Company to the next level of growth, creating a world-class operation and maximizing value for all shareholders.
The challenge now lies in the opportunity itself – the Company has 170,000 MT of copper production capacity, and 230,000 MT of stainless steel production capacity, and a clear plan to bring both operations to their optimal production levels. We believe our plan will continue on course to meet the extraordinary demand for these essential metals created by the unabated transformation and urban migration in China.
Moving forward, Terra Nostra is pursuing an aggressive multi-facetted growth strategy to become a fully integrated one-stop supplier for a significant share of China’s market for high end specialty stainless steel products, as well as international standard refined copper products;
Continued ramp-up of both copper and stainless steel facilities to optimal levels of production
Expand downstream copper production to include new value-add products, as well as upgrade the existing wire / tube production lines.
Expand stainless steel downstream operations to enable the production of higher-value / higher-margin products such as seamless and welded pipes, rods, and wide cold-rolled strip.
Seek out acquisition and expansion opportunities of both copper and stainless steel production with wider geographic distribution to better meet local needs.
Strengthen the supply chain, both by expanding the scrap collection network and obtaining ownership of producing or advanced development stage mines, together with primary ore processors.
Attract additional experienced management to bring further depth and expertise to the operations.
Actively develop relationships with possible strategic partners in the copper and stainless industries.
Finally, I would like to express my sincere gratitude and appreciation to our joint-venture partner, Mr. Zhang Ke, and all of the Terra Nostra and joint venture company employees, customers, suppliers and shareholders. Without their support, our success is not possible. We remain committed to increasing our revenues and earnings, producing the highest quality product, and exceeding our customer expectations – all of which are key components to building shareholder value.
Sun Liu James Po
Chairman and Chief Executive Officer
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 total 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.