BRIEF: China Gold International’s records record profit in first quarter

China Gold International Resources Corp. Ltd. (2099.HK) announced on Friday its revenue rose 66% year-on-year to a record $453 million in the first quarter, while its net profit surged 175% to an all-time high of $236 million, marking the company’s first quarterly profit above $200 million.

During the period, China Gold’s total gold production fell 22% year-on-year to 34,820 ounces. But soaring gold prices lifted the average realized gold price for its Chang Shan Hao mine from $2,886 per ounce to $4,832.

Total copper production edged up slightly to 37.5 million pounds, while the average realized copper price at the company’s Jiama mine rose from $2.54 per pound to $4.54. Mine operating earnings increased 149% year-on-year to $293 million, while the ratio of sales costs to revenue fell from 57% to 35%.

Management said the strong results were driven mainly by high metal prices, which supported strong revenue and profit growth. Higher by-product revenue from the Jiama mine, along with lower financing costs, also contributed.

The company’s stock opened higher on Friday but later turned lower and traded at HK$164.2 by the midday break, down 0.24%.

By Lee Shih Ta

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