Zijin Mining Recorded The Lowest Profit on Gold Price Drop

Zijin Mining Group Co

(Bloomberg) – Zijin Mining Group Co., China’s biggest gold miner by market worth, dispatched the smallest first-half earnings since 2006 after bullion and copper prices fallen and production charges increased.

Net earnings dropped 54% to 1.1 billion yuan ($179.7 million) for the six months completed June 30, from 2.4 billion yuan a year earlier, the Shanghang, Fujian province-based company said in a statement today, citing Chinese accounting measures. The company last month said interim profit would likely decline by between 45% and 55%. Sales expanded 24% to reach 26 billion yuan.

That’s the smallest first-half earnings since 2006, when the business described interim earnings of 662 million yuan, according to facts and figures amassed by Bloomberg. Gold fell 20% this year, going into a bear market in April, and headed for its first annual down turn since 2000.

“Gold prices are still expected to tendency lower after rebounding from excessive declines,” the business said, citing a powerful dollar and China’s economic slowdown. The company’s “full-year outcome may see a relatively large drop from last year.”

The company noted 332.1 million yuan in impairment deficiency in the first half after turns down in gold and other steel charges trimmed the worth of inventories, compared with 375 yuan a year previous. (According to today’s statement)

Zijin declined 1.1% to close at HK$1.84 in Hong Kong swapping, compared with a 1.2% increase in the standard Hang Seng catalogue. The stock has turned down 40% this year. Its Shanghai-traded portions fell 0.8% today.