China Armco Metals
China Armco Metals is engaged in China in the sale and distribution of metal ore and non-ferrous metals to the metal refinery industry in China
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China Armco shares up 17% on iron ore distribution deal with Brazilian steel giant Mineracao Usiminas
China Armco Metals (AMEX:CNAM), a metal ore distributor in China, said Thursday it has inked a deal to distribute iron ore produced by Brazilian company Mineracao Usiminas S.A. Financial terms of the agreement were undisclosed.
Though, California-based China Armco said today it has already delivered its first shipment of 0.15 million metric tons of iron ore from Mineracao.
That shipment,worth $19.8 million, represents nearly 23% of China Armco's revenues in 2009.
"...This strategic relationship offers us a strong opportunity to secure our metal distribution position in China while maximizing profitability," said China Armco's CEO Kexuan Yao.
According to China Armco, Mineracao intends to deliver 3 million metric tons of iron ore to China in 2011, as well as potentially another 20 million metric tons in 2012. Mineracao, which accounts for 28% of the Brazil's total steel output, according to China Armco's press release today, has an annual production capacity of 9.5 million metric tons of steel.
Besides metal ore distribution, China Armco is also in the metal recycling business with the recent launch of its metal recycling facility. The facility is capable of recycling up to about one million metric tons of scrap metal per year.
Since the announcement, China Armco's shares rallied 17% to trade at $2.75 as of 3:54 pm EST.
Other China Armco Metals news
- China Armco Lowers 2010 Revenue and Profit Guidance Due to Blackouts
2010-09-10 - China Armco Metals takes 19.9% stake in iron ore junior Apollo Minerals
2010-06-09 - China Armco Metals reports strong Q2 results
2009-08-17
