Absaroka Capital Management LLC issued a follow up report on China Shen Zhou Mining & Resources Inc. (AMEX: SHZ), pointing out what it said were material misstatements or errors in the company’s Securities and Exchange Commission fiilings. The report, written as a letter to shareholders, also said that an analysis of the company’s financial statements using a forensic auditing tool raised additional concerns.
China Shen Zhou Mining issued a rebuttal March 10 to the original report. It disclosed in a subsequent SEC filing that its chief financial officer had resigned, making him the fourth CFO to leave that position in three years. Despite the negative reports, China Shen Zhou Mining’s shares have been rallying, along with shares of other Chinese minerals producers.