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Zijin Mining Group Last Year Recorded 10% Increase in Net Profit

Zijin Mining Group released performance public notice for 2014 in mid March. Last year the company fulfilled 58.76 billion yuan of business income, up by 18.6% on Y-o-Y basis, net profit belonging to parent company was 2.345 billion yuan, up by 10.34% on Y-o-Y basis. Zijin Mining Group indicated that in the future it would continue globalized M&A focusing on gold and copper.

Last weekend Zijin Mining Group published performance notice for 2014. Last year the company fulfilled 58.76 billion yuan of operating income, up by 18.6% on Y-o-Y basis, net profit belonging to parent company was 2.345 billion yuan, up by 10.34% on Y-o-Y basis. Zijin Mining Group indicated that in the future it would continue globalized M&A focusing on gold and copper.

In 2014 market prices of mineral products experienced continual and considerable decline, most world famous gold manufacturers continued to sustain loss. Against such background, net profit level of Zijin Mining Group still retained world second place, only next to Newmont Mining Corporation.

It has been learned that the impact of price factor on Zijin Mining Group’s profit is about 1.4 billion yuan. Zijin Mining Group’s performance bucked the trend to record growth, which mainly benefited from the company’s management and technological innovation, resulting in increased production and sales, significant loss reduction by smelting enterprises, and effective control over cost.

In the aspect of overseas projects, last year the company’s overseas project Norton Gold Fields recorded new highest output for the second consecutive year, cash cost dropped from 960 AUD/ounce in 2013 to 888 AUD /ounce in 2014. Annual gold output of Sino- Tajikistan Zeravshan Company rose by 31.35% on Y-o-Y basis to become a core enterprise of gold production and key financial pillar in Tajikistan.

In the aspect of newly constructed projects, last year a number of domestic and overseas key construction projects of Zijin Mining Group including Inner Mongolia Sanguikou, Xinjiang Wulagen lead and zinc mine, Russia Tuva zinc multi-metal mine, Kyrgyzstan Zuoan gold mine and Tajikistan Jilau Gold Mine finished construction and started production. Furthermore, last year Zijin Mining Group also intensified efforts in external investment.

Zijin Mining Group considered that globalization strategy is an unavoidable path for company development. Currently the mining industry remained sluggish, global mining companies one after another sold assets, which provided opportunity for company M&A. The company disclosed that, destinations of globalized M&A mainly focused on surrounding countries and key ore concentrated regions worldwide. Mineral targets are mainly fixed at large mature projects at advanced development stage, which should have at least 100 tonnes of gold resources, and one million tonnes of copper resources.