Lihua Plans to Begin Production of Copper Anode in April

Apr 12, 2012 (Close-Up Media via COMTEX) -- Lihua International, a Chinese developer, designer, and manufacturer of alternatives to pure copper products, announced that it is on track to commence production of copper anode on its two new smelters by the end of April.

According to a release, the construction team is currently completing the connection of the recycling system to the smelters and the dedicated power grid. Each of these smelters will add 25,000 to 30,000 tons of copper anode capacity on an annualized basis, giving Lihua a total of 85,000 to 95,000 tons of copper anode capacity per year and a total of 135,000 to 145,000 tons of refined copper production capacity per year.

"Despite the recent weakness in Lihua's share price, there have been no developments within the Company that would warrant this level of volatility. On the contrary, our business has never been stronger," said Jianhua Zhu, Lihua's Chairman and Chief Executive Officer. "Demand from our primary copper anode customers continues to grow, and the volume demand from our largest customer alone already exceeds our post-expansion production capacity. Several weeks ago, we reported record results for 2011 and guided for year-over-year growth of more than 20 percent in both gross profit and non-GAAP net income in 2012. We remain confident in Lihua's growth prospects and the fundamental strength of our business. With a number of catalysts that we expect will begin having a positive effect on our business in the near future, as well as continued support from our loyal investors, we believe that our Company's valuation can become more aligned with and better reflect the strength of our business." Lihua reiterated its financial guidance for full-year 2012 gross profit to be between $93 million and $96 million, and non-GAAP net income between $61 million and $64 million, representing year-over-year growth of 23-27 percent and 22-28 percent, respectively. The company expects that 2012 growth will be largely the result of continued strong demand in China for recycled copper and copper alternative products in the overall copper consumption market including the household appliance, consumer white goods and infrastructure markets, as well as the increase in production capacity. In addition, the company will distribute its second special dividend of $0.03 per share on April 13, to shareholders of record as of March 31.

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