China Gold International Resources Corp. Ltd. (TSX:CGG – HKEx:2099) is a Canadian based, profitable and growing gold and copper producer. The company operates two producing mines in China: the CSH Gold Mine in Inner Mongolia Region, and the Jiama Copper-Polymetallic Mine in Tibet Region. CGG is the flagship and the only overseas listing vehicle of the largest gold producer in China and 39% shareholder, China National Gold (CNG).

Combined Gold Reserve / Resource
Category Gold Content
(M oz)
Proven / Probable Reserve 6.7
Measured / Indicated Resource* 8.1
Copper Reserve / Resource
Category Copper Content
(Billion lbs)
Proven / Probable Reserve 6.2
Measured / Indicated Resource* 10.3

* Inclusive of Mineral Reserves

Annual Gold Production: 139,443 oz. (to grow to ~260,000 oz. by 2015)
Annual Copper Production: 25,820,417 lbs. (to grow to ~176,000,000 lbs. by 2016)

 

Highlights

  • Strong support from controlling shareholder – CNG, the largest gold producer in China
  • Distinguished integrated PRC and international management with proven track record
  • Two producing mines and a pipeline of acquisition targets
  • Huge exploration potential providing significant resources and reserve upside
  • Clearly defined production growth profile, including Jiama Phase II and CSH expansion
  • International best practice in mine development and environmental protection
  • A regional benchmark in China
  • Strategy in place for organic and accretive growth  

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Support from Major Shareholder

CGG leverages the technology, engineering, operating, government relationships, financing capabilities and international project pipeline of China National Gold.

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Top 10 Shareholders

As of November 21, 2013

1. China National Gold (Beijing, China) -39%
2. Van Eck Associates (NYC, USA)
3. Norges Bank (Oslo, Norway)
4. Atlantis Inv. Mngmt. (Hong Kong, China)
5. Dimentional (Various cities, USA)
6. Blackrock Fund (San Francisco, USA)
7. Franklin Resources (San Francisco, USA)
8. Vanguard (Philadelphia, USA)
9. TDAM USA (Various cities, USA)
10. Canada Pension Plan (Toronto, Canada)

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Revenues, Mine Operating Earnings, Net Profit

Business in Vancouver named China Gold International as the fastest growing enterprise in British Columbia, Canada, by percentage growth in revenue between 2007 and 2011.

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Financial Performance

 

Year ended Dec 31, 2012

Year ended Dec 31, 2011

% change

Revenues (MM USD) $332.4 $311.3 7%
Gross Profit (MM USD) $124.9 $120.8 3%
Net Profit (MM USD) $73.5 $81.9 (10%)
Net Operating Cash Flow (MM USD) $90.8 $115.6 (21%)
Earning per share (US cents) 18 cents 20 cents (10%)
Cash Costs - CSH $825/oz Au $778/oz Au 6%
Cash Costs - *Jiama $1.49/lb Cu $1.68/lb Cu (11%)
Gold Produced CSH (oz) 139,443 133,541 4%
Copper produced Jiama (lbs) 25,820,417 21,663,193 20%

*Cash cost per pound of copper after by-product credits

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The CSH Gold Mine

One of the Largest Open Pit Gold Mines in China – Inner Mongolia

  • A conventional open-pit, heap-leach, gold-mining operation
  • Mining a large, bulk-tonnage, low-grade gold deposit
  • Principle product: Gold dore bars with silver by-product
  • Well-established basic infrastructure with excellent access to road and sufficient supplies of power, water and local labor force
  • Expansion Feasibility study completed in Q4, 2012 to increase mine processing capacity from 30,000tpd to 60,000tpd, thus shortening mine life to 11 years
  • Expansion construction is expected to be completed by the end of 2013
  • Production is expected to grow to 260,000 oz. per year by 2015

Click here for more about The CSH Gold Mine

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The Jiama Copper-Gold Polymetallic Mine

One of the Largest Cu-Mo-Au-Ag-Pb-Zn Mining Operations in China – Tibet

  • An open-pit and underground mining operation
  • Mining a large, skarn-type mineralization dominated porphyry copper polymetallic deposit with well-developed hornfels-type mineralization located in the Gangdise Copper Metallogeny Belt
  • Principle product: Copper with gold and silver by-product
  • Infill drilling program completed in 2012 to upgrade resources confidence and help further optimize mine design and reserves
  • Expected life of mine: 35 years
  • Completed Pre-Feasibility study is aimed to increase the processing capacity from 6,000 tpd to 50,000 tpd by 2016
  • Expansion  construction expected to be completed by 2015-2016
  • Production is expected to grow to 176,000,000 lbs. per year by 2016

Click here for more about The Jiama Copper-Gold Polymetallic Mine

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