Gulf Resources Announces The Receipt Of Governmental Notification To Temporarily Close Bromine Facilities
Portfolio Pulse from Benzinga Newsdesk
Gulf Resources, Inc. (GURE) has been instructed by the government of Shouguang City to temporarily close its bromine and crude salt facilities from December 25, 2023, to February 20, 2024. This closure is part of the government's efforts to reduce winter air pollution and improve brine resource efficiency. The closure will result in a temporary halt in production, with an additional 15 days of production in Q4 2023 compared to the previous year, but a loss of 19 days in Q1 2024. The company notes that bromine sales typically slow in winter due to the Chinese New Year holidays.
December 22, 2023 | 9:33 pm
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Gulf Resources will temporarily cease production at its bromine and crude salt facilities due to a government mandate, potentially affecting its revenue and stock price in the short term.
The temporary closure of Gulf Resources' facilities is a direct government mandate, which will halt production and likely lead to a decrease in revenue during the affected period. This news is highly relevant and important to GURE as it directly impacts their operations. The confidence in the negative impact is high due to the clear connection between production halts and revenue generation, although the exact financial impact may vary depending on the company's ability to mitigate these effects.
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