TSX:
CGG
HKSE:
2099
last:
2.09 (+0.03)
last:
12.58 (+0.02)
vol:
612,626
vol:
243,600

China Gold International Reports 2017 Second Quarter and First Half Financial Results


VANCOUVER, August 11, 2017 - China Gold International Resources Corp. Ltd. (TSX: CGG; HKEx: 2099) (the “Company” or “China Gold International Resources”) reports on the Company’s financial and operational results for the three months (“Q2”, or “second quarter 2017”) and six months (“first half” or “six months 2017”) ended June 30, 2017.  This news release should be read in conjunction with the Company’s Financial Statements, Notes to the Financial Statements and Management’s Discussion and Analysis.

Selected Production and Financial Highlights: Q2 2017 Compared to Q2 2016

  • Revenue increased by 40% to US$97.9 million from US$69.9 million for the same period in 2016.
  • Mine operating earnings increased by 114% to US$25 million from US$11.7 million for the same period in 2016.         
  • Net profit after income taxes increased to US$20.6 million from a net loss of US$7.4 million for the same period in 2016.
  • Gold production from the CSH Mine decreased by 6% to 45,798 ounces from 48,867 ounces for the same period in 2016.  The decrease in gold production is mainly due to the lower recovery rates during the current period.
  • The total production cost of gold for the three months ended June 30, 2017 increased compared with the same period in 2016, due to higher depletion and depreciation costs.  The cash production cost of gold for the three months ended June 30, 2017 decreased by approximately 5% from US$695 per ounce for the three months ended June 30, 2016 to US$659 for the three months ended June 30, 2017 due to lower waste removal costs. 
CSH Mine Three months ended June 30,

  2017 2016

Total production cost(1) (US$ per ounce) 1,075 1,042
Cash production cost(1)(US$ per ounce) 659 695

(1)   Non-IFRS measure.
  • During the three months ended June 30, 2017, both cash production cost and total production cost of copper per pound decreased, mainly because of the higher ore grade mined during the period.
Jiama Mine Three months ended June 30,

  2017 2016

Total production cost(1) (US$) of copper per pound after by-products credits(2) 1.08 1.36
Cash production cost(3) (US$) of copper per pound after by-products credits(2) 0.73 0.94

(1)   Production costs include expenditures incurred at the mine sites for the activities related to production including mining, processing, mine site G&A and royalties etc.
(2)  By-products credit refers to the sales of gold and silver during the corresponding period.
(3)   Non-IFRS measure.
  • Copper production from the Jiama Mine increased by 38% to 6,918 tonnes (approximately 15.25 million pounds) from 5,014 tonnes (approximately 11.05 million pounds) for the same period in 2016.

Selected Production and Financial Highlights: First Half 2017 Compared to First Half 2016

  • Revenue increased by 33% to US$180 million from US$135.5 million for the same period in 2016.
  • Mine operating earnings increased by 128% to US$44.1 million from US$19.3 million for the same period in 2016.      
  • Net profit after income taxes increased to US$27.0 million from a net loss of US$10.9 million for the same period in 2016.
  • Gold production from the CSH Mine decreased by 6% to 80,338 ounces from 85,570 ounces for the same period in 2016.
  • Copper production from the Jiama Mine increased by 59% to 14,500 tonnes (approximately 31.97 million pounds) from 9,120 tonnes (approximately 20.11 million pounds) for the same period in 2016.

Mr. Bing Liu, the CEO and Executive Director of the Company, stated, “I am pleased to report that China Gold International saw a strong second quarter with increased revenue and reduced production costs.  The Series I of Jiama Mine’s Phase II expansion will achieve full capacity in the second half of the year which will increase copper production significantly.  As the CSH Mine enters into what is traditionally its peak production quarter, we are optimistic that we can utilize the prime operating conditions to increase gold production.  In addition, the Company continues to pursue growth opportunities and optimize its capital structure through strategic initiatives intended to build shareholder value.”

Analysts, investors, media and general public are encouraged to visit the Company’s website at www.chinagoldintl.com, The Stock Exchange of Hong Kong Limited’s website at www.hkex.com.hk or SEDAR at www.sedar.com to view the complete set of the financial statements and MD&A or contact the Company with any questions.

About China Gold International Resources

China Gold International Resources Corp. Ltd. is based in Vancouver, BC, Canada and operates both profitable and growing mines, the CSH Gold Mine in Inner Mongolia, and the Jiama Copper-Polymetallic Mine in Tibet Autonomous Region of the People’s Republic of China. The Company’s objective is to continue to build shareholder value by growing production at its current mining operations, expanding its resource base, and aggressively acquiring and developing new projects internationally. The Company is listed on the Toronto Stock Exchange (TSX: CGG) and the Main Board of The Stock Exchange of Hong Kong Limited (HKEx: 2099).

For further information on China Gold International Resources Corp. Ltd., please refer to its SEDAR profile at www.sedar.com or contact Tel:604-609-0598, Email: info@chinagoldintl.com, Website: www.chinagoldintl.com.

Cautionary Note About Forward-Looking Statements

Certain information regarding China Gold International Resources contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although China Gold International Resources believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. China Gold International Resources cautions that actual performance will be affected by a number of factors, most of which are beyond its control, and that future events and results may vary substantially from what China Gold International Resources currently foresees. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration results, continued availability of capital and financing and general economic, market or business conditions. The forward-looking statements are expressly qualified in their entirety by this cautionary statement. The information contained herein is stated as of the current date and subject to change after that date.