Core Viewpoint - Gulf Resources, Inc. is experiencing significant fluctuations in its bromine segment due to changes in pricing and sales volume, impacting overall performance and profitability [1][2]. Pricing Trends - The price of bromine saw a dramatic increase during the COVID-19 pandemic, rising from RMB 28,017 per tonne in Q3 2020 to a peak of RMB 69,500 in October 2021. However, prices have since declined to RMB 17,323 in Q3 2024, with a recent recovery to RMB 22,400 as of November 17, 2024 [2][3][7]. Sales Volume and Utilization - Bromine sales have significantly decreased from 2,655 tonnes in Q3 2022 to only 655.8 tonnes in Q3 2024, leading to a drop in utilization rates from 34% in 2022 to 8% in 2024 [5][6]. - The reduction in sales volume has resulted in a 105.9% increase in the cost per tonne, rising from $2,773 to $5,709, primarily due to fixed costs being spread over a smaller production volume [6][9]. Financial Performance - The financial results reflect the impact of declining sales and prices, with revenues dropping from $19.8 million in Q3 2022 to only $1.57 million in Q3 2024, indicating a 92.1% decrease [9]. - The company reported a loss of $4.03 million in Q3 2024, compared to a loss of $2.14 million in Q3 2023, highlighting the ongoing challenges in the bromine segment [9]. Strategic Response - In response to declining prices and sales, the company has opted to limit sales to protect its mineral assets, anticipating a future price rebound [4][8].
Gulf Resources Provides Detailed Overview of the Economics of its Bromine Segment