Gulf Resources, trading under the ticker GURE, has announced a notable financial setback for its bromine division in 2024. The segment recorded a net loss of $8.2 million, despite generating revenues of approximately $5.5 million. The drop in financial performance is attributed to a steep decline in bromine prices and reduced sales volume.
The average bromine price plummeted to RMB 17,561 in 2024, marking a decrease of 27.1% compared to 2023 and a substantial 67.3% fall from 2022 figures. In response to these challenging market dynamics, Gulf Resources intentionally curtailed its bromine sales, leading to a significant 71.7% reduction in sales volume over the year.
This strategic reduction in sales volume inadvertently caused the cost per tonne to escalate by 83.4%. This increase was due to fixed costs and overheads being spread over a smaller production output, further exacerbating the financial strain on the division.
