FAST NEWS: Shandong Gold’s profit soars on record gold prices

The Latest: Shandong Gold Mining Co. Ltd. (1787.HK) said on Monday it expects to report a non-GAAP adjusted net profit of 1.88 billion yuan ($266 million) to 2.28 billion yuan for the first three quarters of this year, up 46.68% to 77.93% from the same period of 2023.

Looking Up: The company said it benefited from improvements in its strategic leadership, production organization, production layout optimization, and technical management and innovation to boost its production and resource utilization. Rising gold prices and the acquisition of Shanjin International also contributed to the profit increase.

Take Note: The company’s adjusted net profit rose by 60.35% to 1.41 billion million in the first half of the year, meaning its growth rate may have slowed in the third quarter if its profit comes in at the lower end of its latest forecast range.

Digging Deeper: Based in Jinan, capital of East China’s Shandong province, Shandong Gold mainly engages in gold mining, processing and sales, and was listed on the Hong Kong Stock Exchange in 2018. Rising gold prices and a string of large mergers in the last two years have not only boosted the company’s revenue, but also helped it return from the red to the black, including an 86.8% rise in its net profit last year to 2.33 billion yuan. In the first three quarters of this year, gold prices rose by nearly 30% to record highs, helping its earnings to continue rising.

Market Reaction: Shares of Shandong Gold fell on Tuesday, closing down 1.1% at HK$16.7 by the midday break. The stock now trades near the upper end of its 52-week range.

Translation by A. Au

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