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2099
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China Gold International Reports 2020 Third Quarter Financial Results

VANCOUVER, November 12, 2020- 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 (“Q3”, or “third quarter 2020”) and nine months (“nine months 2020”) ended September 30, 2020.  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: Q3 2020 Compared to Q3 2019

  • Revenue increased by 29% to US$240.5 million from US$186.4 million for the same period in 2019.
  • Mine operating earnings increased by 151% to US$66.1 million from US$26.3 million for the same period in 2019.            
  • Net income of US$47.6 million increased by US$47.9 million from a net loss of US$0.3 million for the same period in 2019.
  • Cash flow from operation increased by 60% to US$103.3 million from US$64.4 million for the same period in 2019.
  • Total gold production increased by 6% to 66,799 ounces from 63,113 ounces for the same period in 2019.
  • Total copper production increased by 20% to 48.6 million pounds (approximately 22,029 tonnes) from 40.4 million pounds (approximately 18,347 tonnes) for the same period in 2019.
  • Both total production cost of copper per pound after by-products and cash production cost of copper per pound after by-product at Jiama Mine decreased compared to the same period in 2019 due to higher mined tonnes, higher head grade, higher recovery rates, and increased by-products recovery of lead and zinc.
Jiama Mine Three months ended September 30,
  2020 2019
Total production cost(1) (US$) of copper per pound after by-products credits(2) 0.88 2.06
Cash production cost(3) (US$) of copper per pound after by-products credits(2) 0.26 1.43
(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, silver and other metals during the corresponding period.
(3)   Non-IFRS measure.
  • The total production cost of gold at CSH Mine for the three months ended September 30, 2020 increased to US$1,381 per ounce compared to US$1,289 for the three months ended September 30, 2019.  The cash production cost of gold for the three months ended September 30, 2020 increased to US$906 per ounce from US$820 for the same period in 2019.  Changes in total production cost and cash cost are mainly due to higher stripping ratio and waste removal costs. 
CSH Mine Three months ended September 30,
  2020 2019
Total production cost(1) (US$ per ounce) 1,381 1,289
Cash production cost(1)(US$ per ounce) 906 820

(1)  Non-IFRS measure.

Selected Production and Financial Highlights: Nine Months 2020 Compared to Nine Months 2019

  • Revenue increased by 21% to US$598.2 million from US$495.1 million for the same period in 2019.
  • Mine operating earnings increased by 145% to US$119.8 million from US$48.8 million for the same period in 2019.
  • Net income of US$57.5 million increased by US$85.3 million from a net loss of US$27.8 million for the same period in 2019.
  • Cash flow from operation increased by 36% to US$173.7 million from US$127.9 million for the same period in 2019.
  • Total gold production increased by 12% to 181,671 ounces from 162,640 ounces for the same period in 2019.
  • Total copper production increased by 20% to 130.8 million pounds (approximately 59,317 tonnes) from 108.7 million pounds (approximately 49,306 tonnes) for the same period in 2019.

Mr. Liangyou Jiang, the Chairman and CEO of the Company, stated, “The Company achieved excellent results in the past quarter.  The growth of our revenue and operating cash flow remained strong.  Our mine operating profit, profit before income tax, and net income all reached record highs.  These achievements were based on the full operation of the Jiama Mine Phase II expansion, continuous and stable operation of the CSH Mine in the long term as well as the efforts from all employees to ensure safe production during the COVID-19 pandemic.  Our total production of gold and copper in 2020 is expected to exceed our annual production guidance released at the beginning of the year.  The Company's management team and all staff will continue to make great efforts to increase efficiency and reduce cost.  All these work will lay a solid foundation for the Company’s future development and definitely deliver satisfactory return to shareholders with better development and more substantial benefits.”

The Company also announces the retirement of Mr. Lisheng Zhang as Vice President and expresses its gratitude to Mr. Zhang for his valuable contribution to the Company.

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 Autonomous Region, 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 the Company, please refer to its SEDAR profile at www.sedar.com or: Telephone: 604-609-0598, [email protected], 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.