Zhaojin intends to purchase 50 tons of gold resources

The profit for the first half of the year was reduced by 31.2% year-on-year to RMB 495 million (the same below), which was mainly attributable to the decrease in sales of gold bullion during the period and the increase in inventory. The company pointed out that in the second half of the year, it will focus on Zhaoyuan in the Mainland to carry out exploration work. The target is to increase the amount of newly added gold resources to more than 80 tons throughout the year. In addition, the group also intends to focus on existing mines and carry out resource integration in the surrounding areas. The planned annual acquisition of gold resources will amount to 50 tons.

According to the announcement, the company's first-half revenue fell 22% year-on-year to 1.95 billion yuan, of which gold business revenue fell 30.9% to 1.541 billion yuan, mainly due to lower gold ingot sales and increased inventories. Copper mining business recorded an increase of 51% to RMB409 million during the period. The company's inventory increased by 11% year-on-year to 2.363 billion yuan. Earnings fell 31.2% year-on-year to 496 million yuan; earnings per share were 0.17 yuan. The board of directors does not recommend the distribution of an interim dividend.

During the period, the Group also completed a 9.5% year-on-year increase in total gold volume to 12,520.3 kg (approximately 367,600 oz), its own gold production rose by 1.8% to 7,770.4 kg (approximately 248,800 ounces), and gold smelting processing increased by 25.1% to 4,749.9 kg (about 127,700 oz). As for the gold mineral products of its foreign-invested enterprises, the output reached 1,826.9 kg (approximately 58,736.2 oz), an increase of approximately 16.1% compared with the same period of last year.

Banks have more than doubled

The company's composite cost of gold rose by 4.3% to 121.96 yuan per gram, mainly due to higher raw material prices, depreciation, amortization, and labor costs. However, the gross profit margin increased by 4.53 percentage points year-on-year to approximately 56.84%, which was mainly due to the increase in the proportion of gold concentrate sales revenue to total revenue.

In addition, the company pointed out that it will increase its investment in safety and environmental protection in the second half of the year and plan to invest 100 million yuan, and invest 36 million yuan in safety and environmental protection in the first half of the year. The Dainigezhuang Gold Mine and Hedong Gold Mine will complete the national green mine. declare.

As of the end of June, the Group had a total of RMB 3.39 billion outstanding bank loans and other borrowings, an increase of approximately 103.2% over the same period of last year. Of which, 3.274 billion yuan will be repaid within one year, 91.93 million will be repaid within 2 to 5 years, and the remaining 17.77 million yuan will be repaid after 5 years. The company pointed out that the main reason for the increase during the period was to meet the growing demand for mineral resources, capital expenditures, and operating funds for operating activities.