At March 31, 2013, Migao reported cash and restricted cash of $77.4 million and working capital of $188.6 million.
At the end of the period, the Company had $67.1 million of inventory, which included $21.0 million (42,783 tonnes) of potassium chloride inventory with an average delivered price of $491 per tonne. Also included in inventory were $15.7 million (64,070 tonnes) of finished goods inventory, and $30.4 million of other non-potassium chloride raw materials and goods in transit. During the quarter, the Company sold 39,828 tonnes of potassium nitrate, 84,245 tonnes of potassium sulphate, 57,449 tonnes of specialty compound fertilizer, and 10,186 tonnes of ammonium chloride.
It is anticipated that Sichuan Migao will produce at full annual production capacity of 80,000 tonnes of potassium nitrate for fiscal 2014. At full capacity, Guangdong Migao produces 160,000 tonnes of potassium sulphate and 192,000 tonnes of HCL. As a result of continued Hydrochloric Acid market weakness, it is anticipated that Guangdong Migao will be at approximately 50% of capacity for fiscal 2014. It is anticipated that Changchun Migao will be at 60% of its 80,000 tonnes per year of potassium sulphate capacity for fiscal 2014. It is anticipated that Liaoning Migao will be at 80% capacity for fiscal 2014. It is anticipated that the SQM-Migao joint venture will be at 90% of the total annual 40,000 tonnes of potassium nitrate production capacity for fiscal 2014. The Shanghai Migao facility is expected to produce at 40% - 65% capacity for fiscal 2014, and Zunyi Migao is also expected to produce at 40% - 65% capacity for fiscal 2014, with the production and deliveries being seasonal.
Balance Sheet Highlights($'000) March 31, 2013 March 31, 2012Current ratio 1.82:1 2.56:1Cash and restricted cash 77,363 68,924Working Capital 188,637 205,483Total Assets 544,234 479,163Total Liabilities 235,793 136,747Total Equity 308,441 342,416Long Term Bank Debt to Equity Ratio 0.01:1 0.02:1
"We continue to work through the challenges that face our Company and we are encouraged by the pickup in demand for our core fertilizers in the fourth quarter as customer inventory levels declined and seasonal application was much improved over the first nine months of the year," said Mr. Liu Guocai, CEO of Migao. "The ongoing hydrochloric acid situation is yet to be resolved however we have seen a slight improvement in pricing and demand for this product in some regions."
Migao will be hosting a conference call to discuss the quarterly results at 10:00am, Eastern Time, Friday June 28, 2013. The details are as follows:
Dial in number: 416-340-9432 or 1-877-440-9795
Taped replay (until July 12, 2013): 905-694-9451 or 1-800-408-3053
Taped replay access code: 1308682#
Migao Corporation, through its wholly owned subsidiaries, owns and operates fertilizer production plants in various strategic locations across China for the production and sale of specialty potash fertilizer (potassium nitrate, potassium sulphate, and specialty compound fertilizers) to China's agricultural market. Migao Corporation is subject to, and complies with strict government regulations that govern safety, quality and environmental protection. Please visit www.migaocorp.com for further information.