The Asia Miner

SEP-OCT 2014

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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September/October 2014 | ASIA Miner | 27 China CHINA'S largest listed gold producer, Zijin Mining Group, says its proft in the frst half of 2014 was held back by lower metal prices and higher labour costs. It posted net proft of 1.11 billion yuan (US$178.7 million), which equated to a 1.3% rise, while revenue declined 7.7% to 24 billion yuan. The company said in a stock exchange fling: "Product costs have risen because of higher resources tax and labour costs." It stated that it had partly offset falling product margins by bolstering sales. China is a low-cost producer compared with its global peers but costs have steadily risen on the back of higher wages, increased en- vironmental requirements and tougher safety standards. To cope with falling bullion prices, some miners have increased output as a way to reduce per-unit production costs. Zijin recently reduced its 2014 fnancial year gold production guidance from 33 tonnes to 31 tonnes. At the same time it reaffrmed production guidance for other products - 160 tonnes of silver, 140,000 tonnes of copper, 160,000 tonnes of lead and zinc, and 2.75 million tonnes of iron concentrate powder. During a recent meeting with the China Development Bank in Bei- jing, Zijin's chairman Chen Jinghe said: "Zijin owns leading technology and management in the mining industry, insists on 'resources priority', pays great attention to work in safety and environmental protection and clearly defnes its strategic development direction which is integration of internationalization, large-scale projects and assets security. "Meanwhile, at the backdrop of current market downturn, Zijin's steady performance refects its comparatively good quality assets and strong competitiveness. There are a lot of potential opportunities for merger and acquisition, Zijin is aiming to complete the M&A and restructuring of large projects in the coming short period of time and gradually realize its goal of becoming a frst-class international mining group." Chinese gold production is expected to rise 7.4% in 2014 to reach 460 tonnes, according to research frm Antaike. China's total gold pro- duction in the frst quarter rose 7.3% from the corresponding period of 2013 to 96.5 tonnes, the China Gold Association said. It also said recently that gold demand had slumped 19.4% in the frst six months of 2014 from year ago but production rose strongly in the same period as miners ramped up output to protect proft margins. Gold demand from China has slackened this year as a 28% tumble in 2013 prices, the frst annual decline in 13 years, dented consumer confdence in the precious metal as an investment tool. Lower demand is also partly due to huge purchases last year as the drop in prices prompted many to bring forward their purchase. 紫金增加销量抵消利润下降的影响 中国最大的上市黄金生产企业 – 紫金矿业集团 称其2014年上半年利润受金属价格下跌和人工成 本上升影响增速减缓。公司公布净利润为11.1亿 元人民币(1.787亿美元),增长1.3%,营业收入 为240亿元,下降了7.7%。 公司在股票交易所的一份文件中表示:"产品价 "公司 表示已经通过增加销量部分抵消了产品利润下降 的影响。 是随着工资水平增长,环保要求提高和安全标准 更加严格,其成本逐渐提高。 2014年产金目标由33吨下调至31 吨。同时,公司重申了其他产品的产量计划 - 银 160吨,铜14万吨,铅锌16万吨,铁精粉275万 吨。 展银行的会谈中指出,"紫金在采矿领域拥有领 先的技术和管理水平,坚持'资源优先',高度 产证券化的战略发展方向。" "同时,在当前市场低迷的情况下,更彰显了紫 的市场形势蕴含着良好的并购机遇,紫金希望在 际一流矿业公司的目标。" 研究机构- 2014年中国黄金年产 量将增加7.4%,达到460吨。据中国黄金协会数据 显示,第一季度中国总黄金产量为96.5 2013 年同期增加7.3% 示,2014年上半年黄金需求下降了19.4%,但是矿 的产量迅速增加。 今年中国黄金需求有所减弱,导致黄金价格比 2013年下降了28% 13年来第一个消减年,削 黄金购买价格下跌引起许多人购买也是导致黄金 需求减少的部分原因。 An open pit at the Zijinshan mine owned by Zijin Mining Group. An aerial view of Zijin's Zijinshan copper and gold mine. Zijin lifts sales to offset lower margins

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