Century Announces Filing of Third Quarter Financial Results, Management Discussion and Analysis
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THIS NEWS RELEASE IS NOT FOR DISTRIBUTION IN
THE UNITED STATES OR TO U.S. NEWS AGENCIES
For Immediate Release TSX: CNT
CENTURY ANNOUNCES FILING OF THIRD QUARTER FINANCIAL RESULTS,
MANAGEMENT DISCUSSION AND ANALYSIS
Toronto, Canada, February 12, 2019 – Century Global Commodities Corporation (“Century” or the “Company”)
is pleased to announce that it has filed its condensed consolidated interim financial statements for the third
fiscal quarter ended December 31, 2018 and the related management discussion and analysis (“MD&A”). Copies
of these documents are available under Century’s SEDAR profile at www.sedar.com and will be posted on
Century’s website at www.centuryglobal.ca.
As at December 31, 2018 the Company reported substantial working capital of C$20.5 million, comprised of cash,
bank deposits and an investment portfolio of C$9.7 million (not tied to any funding commitment for any project
development), accounts receivables and other current assets of C$12.8 million, and accounts payable of C$2.0
million.
During the third quarter of the fiscal year 2018 -2019, the iron ore market moved steadily higher and is trading
between mid- US$80/t to US$90/t (DMT, 62% Fe, CFR China) in early February, 2019 . Futures, with delivery
before the end of the March quarter 2019, are trading at high- US$80/t range. We believe it is prudent to
continue our market observer position, while maintaining a small, lean mining team ready to advance our iron
ore projects rapidly when the market recovers adequately.
On June 20, 2018, the Company announced the planning of spin -out transaction (the “Spin-out Transaction”)
whereby a portion of the shares of its wholly owned subsidiary, Century Metals Inc. (“Century Metals”), will be
distributed pro -rata to shareholders of Century, by way of a dividend -in-kind. In advance of the Spin -out
Transaction, Century Metals has completed a series of Special Warrant Private Placements. The initial
subscription for 4,531,999 Special Warrants for gross proceeds of approximately $271,920 was closed on July 9,
2018. The second tranche of an additiona l 1,263,000 Special Warrants for gross proceeds of $75,780 was also
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closed on September 7, 2018. Due to popular demand, the third tranche of a further 1,267,000 Special Warrants
for aggregate proceeds of $76,020 was closed on November 2, 2018 . In total, C entury Metals has issued
7,061,999 Special Warrants for aggregate proceeds of approximately $ 423,720. Certain subscribers of Special
Warrants have agreed to voluntary escrow their Special Warrant Shares upon conversion of the Special Warrants
with 25% of the Special Warrant Shares released to them upon the listing of the common shares of Century
Metals on the TSX Venture Exchange with an additional 25% becoming available every four months. Subject to
regulatory approvals of the listing of Century Metals common shares on the TSX Venture Exchange, the Spin-out
Transaction is expected to be completed during the fourth quarter of Century’s 2018-19 fiscal year.
The third quarter was another record-breaking quarter for the Company’s food segment, delivering nearly $1.65
million in sales (compared with $841,660 in the same quarter of 2017-18) representing close to 96% growth year
over year, 21% growth over last quarter, and delivering a gross margin of 29.6%. The Hong Kong food distribution
is now very well established and is currently the substantial contributor to the performance of the Food segment.
Not only did it make a positive contribution after direct costs in the quarter, it began to make a net profit after
all overhead allocations. As business volumes c ontinue to grow for the segment, we expect this operation to
deliver positive net income and cash flow.
About Century
Century Global Commodities Corporation (TSX:CNT) is building shareholder value through existing and
entrepreneurial business units that m eet continuing and growing demand from China, the largest market in
human history.
Iron Ore
With Baowu and Minmetals, both Global Fortune 500 companies, as Chinese strategic partners, Century owns
one of the largest iron ore mineral resource bases in the world, across five projects in Quebec and Newfoundland
and Labrador. Joyce Lake, a direct shipping iron ore (“DSO”) project in Newfoundland and Labrador, is our most
advanced project. It has completed feasibility and permitting studies and can be brought to production within
approximately 30 months. We are maintaining our properties ready for advancement after a return to sustained
higher iron ore prices.
Base and Precious Metals Investment
Century is monitoring investment and acquisition opportunities in the base and precious metals sector . When
the right opportunity presents itself, our strong balance sheet will allow us to invest or acquire cost-effective
assets during the low base and precious metal price cycle , positioning ourselves for gains when the market
improves.
Quality Food Services
Quality food products sourced from advanced countries are in great demand from the quickly -growing middle
class in Ch ina. The emphasis is on the need for safe, high -quality food products. Century has established a
professional marketing team and built a distribution system to serve Hong Kong and eventually all of China. With
a successful local partner, Century is now operating small pilot restaurant stores in China.
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For further information please contact:
Sandy Chim, President & CEO
Century Global Commodities Corporation
416-977-3188
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LEGISLATION. THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS
OF CENTURY AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE.
FORWARD-LOOKING INFO RMATION INCLUDES INF ORMATION THAT RELATE S TO, AMONG OTHER TH INGS, CENTURY’S
INTENTION TO EVALUATE PROSPECTIVE TRANSACTIONS ARISING FROM THE REVIEW BY CENTURY OF ITS STRATEGIC OPTIONS
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OR IMPLIED BY THE FO RWARD-LOOKING INFORM ATION MAY INCLUDE, B UT ARE NOT LIMITED T O, RISKS GENERALLY
ASSOCIATED WITH CENTURY’S BUSINESS, AS DESCRIBED IN CENTURY’S ANNUAL INFORMATION FORM FOR THE YEAR ENDED
MARCH 31, 2018. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD
NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE CENTURY MAY ELECT TO, IT DOES NOT UNDERTAKE TO
UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.