Key Developments: Kingold Jewelry Inc (KGJI.W)
1.27USD
23 May 2013
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Latest Key Developments (Source: Significant Developments)
Kingold Jewelry Inc Signs $40.2 Million Gold Leasing Agreement With China Construction Bank
Kingold Jewelry Inc announced that the Company has signed a Gold Leasing Agreement (Agreement) with China Construction Bank's (CCB) Wuhan Jiang'An branch. The Agreement is similar to a revolving credit line, with CCB providing Kingold a reusable credit line of up to RMB250 million (approximately US$40.2 million ); however, draw downs under the facility (and repayment thereunder) will be made in gold rather than currency. Gold loans under the facility will bear interest at a rate of approximately 6% p.a., with interest based on the actual weight of gold loaned under the facility (in grams), the price of gold (yuan/gram), in addition to the rate and number of days the gold was loaned under the facility. The initial line of credit is available until October 26 , 2013. Because the market price of gold may fluctuate during the term of the Agreement, Kingold and CCB have agreed to a cap of 95% on the credit line based on the actual value of gold loans outstanding at any time under the credit facility. Full Article
Kingold Jewelry Inc Announces Sale Of Common Stock
Kingold Jewelry Inc announced that the Company has entered into a Subscription Agreement with three individuals providing for the sale of 7,000,000 shares of common stock at a price of $1.80 per share for gross proceeds of $12,600,000. The Company also issued to the investors, on a pro rata basis, warrants to purchase up to an additional 2,800,000 shares of common stock at an exercise price of $1.80, which warrant is not cashless exercise but is exercisable at any time in whole or in part for twelve months following the date of the Agreement. The Company intends to use the proceeds from this transaction to purchase additional raw materials for products, working capital and other general corporate purposes. Full Article
Kingold Jewelry, Inc. Announces Share Repurchase Plan
Kingold Jewelry, Inc. announced that Kingold's board of directors has authorized the repurchase of up to $10 million of issued and outstanding shares of Kingold's common stock in the open market or in privately negotiated transactions at any time and from time to time during the twelve-month period ending July 12, 2013. Kingold currently has approximately 53.4 million common shares outstanding. Full Article
Kingold Jewelry Inc Signs Agreement With Shenzhen-Based Wholesaler To Process Gold Jewelry Products
Kingold Jewelry Inc announced that it has entered into a gold-processing agreement with Shenzhen TongXin Jewelry Ltd. (Shenzhen TongXin). Pursuant to the agreement, Kingold will exclusively process a variety of 24-karat gold jewelry products (rings, necklaces, bracelets) for Shenzhen TongXin beginning June 1, 2012 until May 31, 2013. Kingold expects to process at least 104 kilograms, or approximately 3668 ounces, of jewelry products per month until the expiration date of the agreement. Kingold's revenue from this agreement will be derived from its sales price of goods sold upon delivery to Shenzhen Tongxin along with its service fees. Full Article
Kingold Jewelry, Inc. Reaffirms FY 2011 Guidance
Kingold Jewelry, Inc. announced that based on the Company's performance during the first nine months of 2011 and management's current outlook for the remainder of fiscal 2011, the Company has reassured fiscal 2011 revenue guidance to a range of between $800 million and $850 million and net income guidance between $32 million and $34 million. Full Article
Wuhan Rural Commercial Bank Selects Kingold Jewelry, Inc.
Kingold Jewelry, Inc. announced that it has entered into an agreement with Wuhan Rural Commercial Bank (Bank) for the distribution of Kingold's investment-related products such as gold coins, bars and ornaments. It is anticipated that Kingold's investment-related products will be available for purchase by customers throughout the Bank's network of 230 branches across Wuhan, one of the largest cities in China with a population of approximately 9 million inhabitants. Full Article
Kingold Jewelry, Inc. Raises FY 2011 Guidance
Kingold Jewelry, Inc. raised its fiscal 2011 guidance for revenue to be between $800 million and $850 million, up from prior guidance of between $720 million and $780 million. The Company also has raised its fiscal 2011 net income guidance to a range of between $32 million and $34 million, up from prior guidance of between of $30 million and $32 million. The Company's new guidance assumes, among other things, relatively stable gold prices for the remainder of the year, no additional capital raises in 2011, and meaningful contribution from its new line of investment-oriented gold products in the second half of 2011. Full Article
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