China Gold International Reports Strong 2013 Second Quarter and First Half Results and Reconfirms 2013 Annual Outlook
Revenues and Net Income Grow. Copper Production Significantly Increases. CSH Mine Completes the Construction of New Additional 30,000 tonne-per-day Crushing and Processing Facilities.
VANCOUVER, Aug. 14, 2013 /PRNewswire/ - China Gold International Resources Corp. Ltd. (TSX: CGG; HKEx: 2099) (the "Company" or "China Gold International Resources") is pleased to report financial and operational results for the three month ("Q2", "quarter" or "second quarter 2013") and six months ("first half" or "six month 2013") ended June 30, 2013. The company reconfirms its 2013 outlook.
Selected Production and Financial Highlights: Q2 2013 Compared to Q2 2012
- Consolidated revenues of US$81.6 million for the second quarter of 2013 increased by US$5.1 million, from US$76.5 million for the same period in 2012, primarily due to the Jiama Mine's significantly improved copper production and sales.
- Net income of the Company of US$19.5 million for the three months ended June 30, 2013 increased by US$6.9 million from US$12.6 million for the three months ended June 30, 2012.
- Gold production at the CSH Mine decreased by 10% to 32,111 ounces for the three months ended June 30, 2013, from 35,848 ounces for the three months ended June 30, 2012.
- The cash and total production costs of gold per ounce for the three months ended June 30, 2013 decreased compared with the same period in 2012.
|CSH Mine||Three months ended June 30,|
|Gold produced (ounces)||32,111||35,848|
|Total production cost (US$) of gold per ounce||877||858|
|Cash production cost* (US$) of gold per ounce||734||753|
|* Non-IFRS measure|
- Copper production from the Jiama Mine significantly increased by 31% to 3,493 tonnes (approximately 7.7 million pounds) during the three months ended June 30, 2013 from 2,663 tonnes (approximately 5.9 million pounds) during the three months ended June 30, 2012.
- Cash and total production cost of copper per tonne and per pound decreased in Q2, 2013 compared with the same period in 2012.
|Jiama Mine||Three months ended June 30,|
|Copper produced (tonnes)||3,493||2,663|
|Copper produced (pounds)||7,700,575||5,871,653|
Total production cost* (US$) of copper per pound
after by-products credits***
Cash production cost** (US$) of copper per pound
after by-products credits***
* 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.
|** Non-IFRS measure|
|*** By-products credit refers to the sales of gold and silver during the corresponding period.|
Selected Financial Highlights: First Half 2013 Compared to First Half 2012
- Consolidated revenues of US$158.4 million for the first half of 2013 increased by US$4.3 million, from US$154.1 million for the same time period in 2012. The consolidated revenue increase is primarily due to Jiama Mine's significant increase in copper production and sales, offsetting the decline in gold sales experienced by the CSH Mine during the first six month period in 2013.
- Net income of the Company of US$34.6 million for the six months ended June 30, 2013, increased by US$8.5 million from US$26.1 million for the six months ended June 30, 2012.
Mr. Xin Song, the CEO and Executive Director of the Company, commented, "We are pleased with our second quarter and first half 2013 financial and operational performance. These strong results reflect the high quality of our assets and increased efforts in controlling costs, increasing capacity and output and improving grade and recovery. Our solid balance sheets, quality assets and company-wide spending reductions will help us withstand volatile metals prices. It is the goal of all members of our team at China Gold International Resources to keep delivering solid performance results to our shareholders."
Selected 2013 Operational Achievements and Future Outlook
- At CSH Mine, the Company completed the construction of its additional new 30,000 tpd stand-alone crushing and ADR (Absorption, Desorption and Refining) plant systems in addition to the existing 30,000 tpd facilities. The heap leaching system construction is progressing according to the schedule as well. Full CSH Mine's expansion construction is expected to be completed in the fourth quarter of 2013.
- CSH Mine is expected to produce 145,000 ounces of gold in 2013.
- Jiama Mine is expected to produce 26.5 million pounds of copper from in 2013.
- The Company expects to complete the Jiama Mine's Phase II Independent Feasibility Study and to release an updated NI 43-101 compliant report in the fourth quarter of 2013.
- Jiama Mine's production capacity expansion will be implemented in two stages. Stage one, planned for completion during the fourth quarter of 2013, includes completion of a new 20,000 tpd mill. Stage two construction for an additional 20,000 tpd capacity is expected to be completed in 2014. By 2015, Jiama Mine is expected to reach its planned full capacity of 40,000 tpd of ore.
- To fulfill its growth strategy, the Company is continually working with its controlling shareholder, China National Gold Group Corporation ("CNG") and other parties to identify potential international mining acquisition opportunities.
Analysts, investors, media and general public are encouraged to visit the Company's website, sedar.com or hkexnews.hk 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 a detailed look at the financial statements and MD&A for the quarter ended March 31, 2013, please 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.
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.
SOURCE China Gold International Resources Corp. Ltd.