Terra Nostra Resources Corp. (OTCBB: TNRO) is a majority owner of two joint venture companies in China’s copper and stainless steel industries. The company today announced its financial results for the three months ended February 29, 2008, posting an increase based on the company’s “aggressive ramp” in its stainless steel business.
Terra Nostra reported revenues for the third quarter at $108.8 million, up from $41.3 million from the third quarter of 2007. Gross profit reached $11.4 million in 2008, as compared to a loss of $1.3 million in the third quarter of 2007.
“We made good progress executing on our growth strategy to become a premier producer of specialty stainless steel and cathode copper in China … Domestic demand remains robust. Our local sources of supply and our modern, efficient and strategically located plants give us a distinct advantage over imports and other in-country producers. Our performance to date demonstrates that we’ve built an efficient manufacturing model to maximize profitability as we achieve greater economies of scale and optimize capacity utilization,” Don Nicholson, president and acting CFO of Terra Nostra stated in the press release.
Nicholson said the company intends on increasing manufacturing efforts in both of its copper facilities. Terra Nostra also has a backlog of orders that will contribute to the ramp in stainless steel production.
“In the fourth quarter we will continue to deploy the capital raised in the second half of 2007, increasing production and diversifying our product mix. Now that both the Jinpeng and Dongying copper facilities are fully operational, we will begin to ramp downstream production of rod and wire used in the power and home appliance sectors. Based on orders in hand we are planning for a continued ramp in stainless steel production, including a larger portion of higher grade 310-S and hot rolled strip,” stated Nicholson.
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