Zhen Ding Resources Inc. Releases Q1 2024 10-Q Report

Zhen Ding Resources Inc., a company primarily involved in the processing of metal ore and selling ore concentrates of gold, silver, lead, zinc, and copper, has released its Form 10-Q report for the first quarter of 2024. The report highlights the company's financial performance and operational challenges, as well as its future plans to resume and expand its mining activities in China.

Financial Highlights

• Net Loss: The company reported a net loss of $139,572 for the three months ended March 31, 2024, a slight decrease from the net loss of $140,202 for the same period in 2023. This change was primarily due to a decrease in interest expenses.
• Basic and Diluted Loss Per Common Share: The basic and diluted loss per common share remained at $0.00 for both the three months ended March 31, 2024, and March 31, 2023.
• General and Administrative Expense: There was an increase in general and administrative expenses to $14,797 for the three months ended March 31, 2024, compared to $12,364 for the same period in 2023.
• Interest Expense: Interest expenses decreased slightly to $124,775 for the three months ended March 31, 2024, from $127,838 in the same period of the previous year.

Business Highlights

• Corporate Background: Zhen Ding Resources Inc. operates primarily through its joint venture, Zhen Ding JV, which is involved in the processing of metal ore and selling ore concentrates of gold, silver, lead, zinc, and copper. The company is focused on seeking business partnership opportunities in the exploration and extraction of precious and base metals, primarily in China.
• Operational Challenges: The company has faced operational challenges due to the idling of its mineral processing plant since 2015, attributed to a downturn in demand and market prices for its concentrates. This was compounded by an economic recession in China and a global commodities market downturn.
• Recent Activities: Efforts have been made to secure investment to expand Xinzhou Gold’s mining permit, which would allow the resumption of ore extraction and refinery activities. However, financing has not yet been secured, and previous permit applications were rejected due to environmental concerns.
• Future Outlook: The company plans to seek an investment of approximately $4.5 million to restart its mineral processing plant and extend Xinzhou Gold’s mining permit. This would involve upgrading facilities, expanding permitted mining areas, and resuming exploration and extraction activities.
• Geographical Performance: The company's operations are concentrated in China, specifically in the Anhui province, where it collaborates with Xinzhou Gold for ore supply. The performance is heavily reliant on the ability to secure permits and financing to access higher-grade ore veins.
• Sales Units: Currently, there are no sales or purchases of raw materials due to the halted operations. The company relies solely on Xinzhou Gold for its supply of ores.
• Financing and Restructuring Efforts: In response to robust gold prices during 2022 and 2023, management is exploring proposals from prospective investors for smaller drilling operations and joint venture projects.
• Plan of Operation: The company aims to re-establish its mineral extraction and refining operations by securing necessary financing. It also seeks to diversify its business through strategic transactions to optimize shareholder value.

SEC Filing: Zhen Ding Resources Inc. Releases Q1 2024 [ OTC:RBTK ] - 10-Q - May. 09, 2024