China’s largest gold miner posts gloomy H1 results

Zijin Mining Group Co., China’s largest gold producer by output, said Saturday that its net profits slumped 19.95 percent year-on-year in the first half of 2012 as the world’s economic weakness and shrinking demand weighed on global gold prices.

In a statement filed to the Shanghai Stock Exchange, the company said its net profit amounted to 2.38 billion yuan (375.9 million U.S. dollars) in the first six months of this years, compared with an increase of 18 percent, or 5.71 billion yuan in net profit last year.

Earnings per share fell 20.44 percent to 0.109 yuan from 0.137 yuan last year, according to the company dually listed in Shanghai and Hong Kong.

Sales revenues booked an increase of 32.43 percent in the first half of this year to reach 20.99 billion yuan, according to the statement.

Gold output rose 27.27 percent year-on-year to reach 1.38 million troy ounces.

Global gold prices retreated about 17 percent from the peak of 1,920 U.S. dollars a troy once to 1,97.41 U.S. dollars at the end of June.

The Fujian-based company expected gold price to rebound in the second half of this year since the global economy will continue to see volatility due to the lingering of the European debt crisis, the fragile recovery in the United States and the synchronized slowdown in the emerging markets.

Share price of Zijin dipped 0.25 percent to close at 3.95 yuan in Shanghai but lost 2.61 percent to 2.61 HK dollars (about 33.68 U.S. cents) in Hong Kong on Friday.

Xinhua