Gulf Resources, Inc. (NASDAQ:GURE) Q3 2023 Earnings Call Transcript

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Helen Xu: [Foreign Language]. So firstly, Tom, because, after the typhoons in 2018 and 2019, we want to, we have to evaluate the surrounding area and our main area to think so how to do this. Then we see, other companies, how they do it, until they finish, then we can learn some knowledge from them and experience from them. And at this stage, we think it’s a very appropriate period time stage to do this since we had more knowledge and we learned a lot from others. Second question, because we think this cost was like normal operating expense, we did not think it’s very normal. So, rates happened in Q3. And when we just disclosed it in our 10-Q to our investors.

Unidentified Analyst : Thank you. That sounds like a reasonable explanation. I want to get a sense of what the $15 million expense was? And I think from one of the other gentleman’s question, I understood that the remaining nearly $35 million was going to be spent in Q4. Is that assumption correct?

Helen Xu: Yes. Probably. Yes.

Unidentified Analyst : Okay. My next set of questions are with regard to previous gentleman asked, if the management would consider a buyout at $15 or $20 a share. And I think, the CEO answered that they would not consider it. And I wanted to get a sense of why they would not even consider it. And the reason is, around 2017, there was around $209 million in the company’s books. And as of this release, there is only half of that around $104 million or so. And so, we have gone through a period where there has not been much return for shareholders. It has been — not much value has been created. Actually, a lot of value has been decimated in the last seven years or so. And so, I just want to get a sense from a shareholder’s perspective, why the management would not even consider a buyout at, $15 or $20 per share.

Helen Xu: Hi, Tom. I think because this question we did discussed in previous quarters. Firstly, company will have our bromine business segment, even though now it is now very good, but because bromine price is very low now. But once bromine price increase or come to back to its normal price, our business is very profitable in this bromine segment. Then our natural gas in Sichuan province also have a big potential, because the concentration of the bromine resources there is very low. Third, our Chemical business. Even though now Chemical business are not online yet, but we have very confidence in this segment as well. So already — and bromine resources are limited resources, like, very few productions in the world. So overall, we think our — we have quite confidence in our company. So that’s why we do not consider to sell it at a $15 or $20 currently.

Operator: We have reached the end of the question-and-answer session. And I will now turn the call back to Helen for any closing remarks.

Helen Xu: Hi, operator. I think, if there is no more question, we can close for the call today because it’s time limit, time out. And welcome. If any shareholders have questions, can feel free to e-mail me. And I will be happy to respond to the e-mail as well.

Operator: Thank you. This concludes today’s conference. Disconnect your line at this time. Thank you for your participation.

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