October 8, 2008
China Armco Metals, Inc. Retains HC International, Inc. To Implement Investor Relations Program
China Armco Metals, Inc., (OTCBB: CNAM) ("ARMCO,""CNAM" or "the Company"), a leading ore agency, distributor, and steel recycler in China, today announced it has retained HC International to lead a strategic financial communications program ("the IR program"). HC International will initiate a proactive and targeted investor relations campaign immediately. Matthew Hayden and Alan Sheinwald of HC International, and their team, will be advising the Company in all facets of public financial communications.
China Armco Metals, Inc. is engaged in the sale and distribution of metal ores and non-ferrous metals throughout the PRC and the recycling of scrap steel for the Chinese market. The Company maintains customers throughout China which include the fastest growing steel producing mills and foundries in tier 2 and tier 3 cities. Raw materials are supplied from global suppliers in India, Hong Kong, Nigeria, Brazil, Turkey, the Philippines and Libya. Armco's product line includes ferrous and non-ferrous; Iron Ore, Chrome Ore, Nickel Ore, Copper Ore, Magnese Ore and Steel Billet. Beginning in the second quarter 2009, Armco expects to begin operating its steel recycling and scrap metal supply, which is in the process of implementation. The recycling facility is expected to be capable of recycling one million metric tons of scrap metal per year, which would positioning the Company as one of the top 10 largest recyclers of scrap steel in China. ARMCO estimates the recycled steel market at 100 million metric tons per year.
"The team at HC International is well-respected and has a proven track record of representing successful China-based, U.S.-listed companies, including a U.S.-listed Chinese steel company which recently moved the New York Stock Exchange," said Mr. Kexuan Yao, Chairman of China Armco Metals, Inc. "After careful review, we selected HC International to ensure that the investment community is properly informed of our growth strategy and competitive advantages particularly as we expand into the profitable recycling segment in China upon completion of our recycling facility. In addition to their sector knowledge, we are confident HC will help us to improve our overall communication capabilities, which includes delivering our story and subsequent milestones to a larger, targeted base of investors."
"ARMCO is well positioned to capitalize on two key market opportunities in China's steel industry currently," opened Matthew Hayden, President of HC International. "ARMCO has been, and will continue, to capitalize on China's robust steel demand, which is currently estimated at approximately 500 million tons annually, by providing commodity distributor sourcing and servicing to several major steel producers in China. As overall steel prices begin to stabilize, ARMCO is intently focused on meeting a growing demand for recycled steel that combines cost and energy savings for plants with the additional benefit of a 'Green' footprint critical for producers to operate profitability in both the short and long term. Currently, China is only meeting 20% of the domestic demand for scrap steel which stands at approximately 70 million tons annually. With Armco's recent capital raise, we are confident they will leverage their new steel recycling and scrap metal supply facility when completed, reputation and customer base to generate meaningful future growth," Hayden concluded.
About HC International, Inc.
HC International is a focused and dedicated organization that acts as a premier information resource for institutional investors, hedge funds, buy and sell-side analysts, small to large brokerage firms and accredited investors. HC International helps their clients companies package their corporate information in a clear, concise and consistent manner while facilitating introductions to the right investor at the most opportune time. HC International maintains offices in the U.S. and China. For further information, please contact HC International directly, or visit the Company's Web site at http://www.hcinternational.net.
About China Armco Metals, Inc.
China Armco Metals, Inc. is engaged in the sale and distribution of metal ores and non-ferrous metals throughout the PRC and will become a recycler of scrap steel for the Chinese market upon completion of construction of its new scrap metal recycling plant in the second quarter of 2009. Management expects to see continued robust growth in both revenue and earnings for the remainder of 2008. For the full year of 2008, management anticipates that its net income will exceed $6 million. The Company maintains customers throughout China which include the fastest growing steel producing mills and foundries in tier 2 and tier 3 cities. Raw materials are supplied from global suppliers in India, Hong Kong, Nigeria, Brazil, Turkey, the Philippines and Libya. Armco's product lines include ferrous and non-ferrous; Iron Ore, Chrome Ore, Nickel Ore, Copper Ore, Magnese Ore and Steel Billet. The Company recently raised $7.4 million through a private equity placement in July and August of 2008. Substantially all of the net proceeds from the offering will be used to expand the Company's operations into scrap metal production through the construction of a metal recycling facility in China. Beginning in the second quarter 2009, Armco will begin operations on its metal recycling and scrap metal supply. The recycling facility is expected to have a recycling capacity of one million metric tons of scrap metal per year which will position the Company as one of the top 10 largest recyclers of scrap steel in China. The Company estimates the recycled metal market as 70 million metric tons. A portion of the recently raised capital will also be used to expand the Company's metal ore distribution operations.
Safe Harbor Statement
In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, China Armco Metals, Inc., is hereby providing cautionary statements identifying important factors that could cause our actual results to differ materially from those projected in forward-looking statements (as defined in such act). Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as "will likely result,""are expected to,""will continue,""is anticipated,""estimated,""intends,""plans,""believes" and "projects") may be forward-looking and may involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. These statements include, but are not limited to, our expected completion date for the metal recycling facility and its production capacity, guidance and expectations regarding demand for steel, revenues, net income and earnings. In addition, any such statements are qualified in their entirety by reference to, and are accompanied by, the following key factors that have a direct bearing on our results of operations: our ability to successfully complete construction of our proposed scrap metal recycling facility, our need for additional financing to construct the metal recycling facility we intend to build which we may not be able to obtain on acceptable terms, our ability to operate the proposed recycling facility profitably; and fluctuations in raw material prices may affect our operating results as we may not be able to pass on cost increases to customers.
We caution that the forward looking statements are subject to risks and uncertainties and the other factors described herein that could cause actual results to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. This press release is qualified in its entirety by the cautionary statements and risk factor disclosure contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-KSB for the year ended December 31, 2007 and Item 1.01 "Risk Factors" of our Current Report on Form 8-K filed on July 1, 2008.
Investor Relations Contact(s) Alan Sheinwald HC International, Inc. US +1 (914) 669-0222 [email protected]www.hcinternational.net
SOURCE: China Armco Metals, Inc.