China Natural Resources, Inc. (CHNR) reported a net loss of CNY 1.27 million (US$ 0.18 million) for the six months ended June 30 2025, a deterioration from the CNY 0.12 million loss recorded for the same period in 2024. The widening loss is driven almost entirely by a sharp decline in the fair‑value gain on financial instruments, which fell from CNY 3.86 million in H1 2024 to CNY 1.88 million in H1 2025.
The drop in fair‑value gain reflects a significant re‑valuation of the company’s outstanding warrants. In 2024 the warrants were valued at a premium that generated a CNY 3.86 million gain, whereas in 2025 market conditions and the company’s own hedging strategy reduced the premium to CNY 1.88 million, erasing roughly two‑thirds of the prior year’s benefit. This loss in unrealised gains directly increased the reported net loss, as the company had no revenue to offset the hit.
Cash and cash equivalents at June 30 2025 stood at US$ 0.10 million (approximately CNY 0.73 million), a steep decline from the CNY 3.08 million (US$ 0.43 million) reported at the end of December 2024. The cash squeeze is largely attributable to capital expenditures on exploration activities in Inner Mongolia and the ongoing, but delayed, acquisition of Williams Minerals, which has required the company to commit significant working capital to secure the transaction and to meet regulatory compliance requirements for Nasdaq listing. The company’s liquidity position remains fragile, with cash reserves barely covering a few weeks of operating expenses.
Chairman Mr. Wong Wah On Edward emphasized that the company is “continuing to prudently invest in our exploration activities as we work to extract further value from the Wulatehouqi Moruogu Tong Mine.” He added that the William Minerals acquisition remains a priority, but that “the condition precedent to closing has been delayed.” The statement signals a continued focus on long‑term asset development while acknowledging short‑term funding constraints and regulatory pressure to regain compliance with Nasdaq’s minimum bid price rule.
Market observers note that CHNR’s stock has been trading below the Nasdaq $1.00 minimum bid price, and the company has received a delisting extension until June 30 2025. Analyst sentiment is largely neutral, with concerns centered on the company’s persistent losses, lack of revenue, and the uncertainty surrounding the delayed acquisition. The earnings report, however, provides a clearer picture of the company’s cash burn rate and the scale of capital required to sustain its exploration pipeline.
For investors, the results underscore a continued reliance on capital raises and debt elimination rather than operational cash flow. The widening loss, shrinking cash balance, and regulatory compliance risk suggest that the company’s current business model remains in a pre‑revenue, high‑risk development phase. Unless the company can secure additional funding or generate revenue from its mining operations, the financial outlook remains uncertain, and the stock’s valuation will likely remain pressured by liquidity concerns and the looming delisting risk.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.