Key Takeaways:
- H1 revenue rose 58% to US$914.2 million from US$580.4 million a year earlier.
- Net profit more than doubled to US$512.1 million, up from US$202.3 million.
- Gold output fell 18% to 72,317 ounces while copper rose to 78.6 million pounds.
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China Gold International posts record H1 net profit of US$512 million
China Gold International Resources reported first-half net profit of US$512.1 million, up 153% from US$202.3 million a year earlier.
"We delivered the strongest second-quarter and first-half performance in the Company's history, solidly validating our strategy and dedication," Chenguang Hou, chairman and CEO, said.
Revenue rose 58% to US$914.2 million from US$580.4 million, while mine operating earnings reached US$620.1 million, up from US$277.1 million. Cash flow from operations climbed to US$555.2 million from US$334.8 million. Gold production fell 18% to 72,317 ounces, and copper output edged up to 78.6 million pounds (35,671 tonnes). Earnings per share came to 127.99 US cents.
The record first half reflects elevated gold and copper prices across the sector. Management last month approved a "Super Pit" development plan at the Jiama copper-gold mine in Tibet targeting processing capacity of about 160,000 tonnes per day, after a June resource update lifted measured mineral resources 523% and proven mineral reserves 1,170%.
In the second quarter alone, net profit reached US$275.8 million, up from US$116.3 million a year earlier, on revenue of US$461.0 million, a 50% increase. Mine operating earnings for the quarter were US$327.3 million, and cash flow from operations was US$286.5 million. Quarterly gold output fell 14% to 37,498 ounces, while copper production rose slightly to 41.1 million pounds.
The company operates the CSH gold mine in Inner Mongolia and the Jiama copper-gold polymetallic mine in Tibet. It is dual-listed on the Toronto Stock Exchange (CGG) and the Hong Kong Stock Exchange (2099). The company did not declare an interim dividend for the period.
Shares of China Gold International traded at C$34.21 on the TSX, down 4.7%, giving the company a market value of about C$13.6 billion.
The profit surge positions the miner to fund the Jiama expansion from internal cash flow, with the "Super Pit" plan expected to more than triple processing capacity. Investors will watch for construction timelines and updated production guidance in coming quarters.
This article is for informational purposes only and does not constitute investment advice.
