Welcome!

Cognitive Computing Authors: Elizabeth White, Yeshim Deniz, Olivier Huynh Van, Liz McMillan, Automic Blog

News Feed Item

China Gold International Reports 2014 Second Quarter and First Half Results and Revises 2014 Annual Production Outlook

The Company completes construction of the facilities for stage one of Phase II expansion at Jiama. The Company reduces total and cash production costs at both mines.

VANCOUVER, Aug. 14, 2014 /CNW/ - China Gold International Resources Corp. Ltd. (TSX: CGG; HKEx: 2099) (the "Company" or "China Gold International Resources") reports financial and operational results for the three months ("Q2", "quarter" or "second quarter 2014") and six months ("first half" or "six months 2014") ended June 30, 2014. The Company revises its 2014 annual production guidance.

Selected Production and Financial Highlights: Q2 2014 Compared to Q2 2013

  • Consolidated revenues of US$48.5 million for the second quarter of 2014 decreased by US$33.1 million, from US$81.6 million for the same period in 2013.
  • Revenues from the Chang Shan Hao Gold Mine (the "CSH Mine", the "CSH Gold Mine" or "CSH") of US$28.1 million (Q2, 2013: US$46.2 million) decreased by US$ 18.1 million due to a 35% decrease in gold sales volume and significantly lower gold prices.
  • Revenue from the Jiama Copper-Gold Polymetallic Mine (the "Jiama Mine" or "Jiama") of US$20.4 million (Q2, 2013: US$35.4 million) decreased by US$15 million due to a 27% decrease in copper sales  due to changes in market demand.  During the three month period, the Company was stockpiling the copper concentrate until market demand improves.
  • Net income of the Company of US$8.4 million for the three months ended June 30, 2014 decreased by US$11.1 million from US$19.5 million for the three months ended June 30, 2013. 
  • Gold production at the CSH Mine decreased to 24,571 ounces for the three months ended June 30, 2014, compared to 32,111 ounces for the three months ended June 30, 2013.  Despite the higher grade of ore, gold output decreased due to lower recovery rates which were a result of longer leaching time with an increased height of the leaching heap.  
  • The cash and total production costs of gold per ounce for the three months ended June 30, 2014 decreased compared with the same period in 2013 due to the lower processing and waste rock removal costs during the current quarter.

CSH Mine

Three months ended June 30,


2014

2013

Total production cost (US$) of gold per ounce

733

877




Total Cash production cost* (US$) of gold per ounce

446

734

* Non-IFRS measure



  • Copper production from the Jiama Mine amounted to 9.6 million pounds during the three months ended June 30, 2014 compared to 7.7 million pounds during the three months ended June 30, 2013.
  • Cash and total production cost of copper per pound decreased in Q2, 2014 compared with the same period in 2013 due to the increase in the grade of ores during the current period.

Jiama Mine

   Three months ended June 30,


2014

2013




Total production cost* (US$) of copper per pound

after by-products credits

1.78

2.11




Cash production cost**  (US$) of copper per pound

after by-products credits

1.09

1.55

*

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

Selected Financial Highlights: First Half 2014 Compared to First Half 2013

  • Consolidated revenues of US$85.2 million for the first half of 2014 increased by US$73.2 million, from US$158.4 million for the same period in 2013.
  • Revenues from the Chang Shan Hao Gold Mine of US$59.7 million (first half 2013: US$93.6 million) decreased by US$33.9 million due to a 27% decrease in gold sales volume and significantly lower gold prices.
  • Gold produced by the CSH Mine amounted to 51,689 ounces, compared to 64,274 ounces for the same period in 2013. The decrease is due to longer recovery periods as a result of the increased height of the leaching heap.
  • Revenue from the Jiama Copper-Gold Polymetallic Mine of US$25.5 million (first half 2013: US$64.7 million) decreased mostly due to a significant decrease in copper production during the first quarter of 2014, due to a seasonal electricity shortage experienced by the Jiama Mine.
  • Net income of the Company of US$9.7 million for the six months ended June 30, 2014, decreased by US$24.9 million from US$34.6 million for the six months ended June 30, 2013. 

Mr. Bing Liu, the CEO and Executive Director of the Company, commented, "We have achieved numerous milestones so far in 2014. We have completed the first stage of construction of the Jiama Mine's Phase II expansion on time.  We have successfully managed a US$500 million bond issue.  We are reducing costs at both of our mines. At the same time, our company and the rest of the industry are facing challenging market conditions. We believe our superior technical and operating experience and our ability to raise financing will help us weather this downturn in the industry and still deliver profits and growth to our shareholders".

Selected 2014 Operational Achievements

  • Phase II expansion at the Jiama Mine is progressing as planned. The first stage of Phase II expansion facilities construction, including ore storage silo, crusher, mills floatation circuits, thickeners, and power and water supply systems was completed in the second quarter of 2014. This increased the mill processing capacity from 6,000 tpd to 28,000 tpd. The pre-striping for open pits and ore transportation system for the first stage of the Phase II production facility will be completed in the second half of 2014. The new production facility is currently under testing. The output of copper concentrate from the first stage of the production facility is expected during the second half of 2014.
  • The Company continues its company-wide cost reduction strategy which has resulted in significant decreases in total and cash operating costs for both mines.

2014 Revised Production and Operating Outlook for CSH and Jiama

  • On May 15, 2014, the Company reported expected 2014 annual gold production guidance to be 208,000 ounces. The Company revises this 2014 annual gold production guidance to 165,000 ounces. This is an 11% increase from the 2013 actual gold output of 148,326 ounces of gold. The revision of the forecast is due to the longer commissioning period of the expansion at CSH, caused by repair and reinforcement of the heap leach pad. In addition, the revision is in consideration of the longer gold recovery period due to the increased heap leach height which resulted in reduced gold production in the first half of 2014.  The company has sufficient funding and operational and technical expertise to successfully resolve those challenges.
  • In the first half of 2014 the Company had reported that its ongoing initiatives to increase production, productivity and efficiency at the Jiama Mine were expected to enable it to meet its previously mentioned 2014 production guidance of approximately 50 million pounds of copper. The Company revises its 2014 expected copper production guidance to 28.6 million pounds, which is a slight increase from the 2013 actual copper output of 28.3 million pounds. This revision is due to the reduced production in the first quarter of 2014, as Jiama experienced power supply shortages.  In addition, the revision is in consideration of expected lower recovery rate from the high oxide ore from the south pit during the second half of 2014, uncertainties relating to power supply shortage in the fourth quarter and duration of the commissioning period of the Phase II expansion. 
  • The Company will continue to leverage the technical and operating experience of the Company's controlling shareholder, China National Gold Group Corporation ("CNG"), to improve operations at its mines, increase production and minimize costs.
  • To fulfill its growth strategy, the Company is continually working with CNG and other interested parties to identify potential international mining opportunities, mainly outside of China, which can be readily and quickly brought into production with the possibility of further expansion through continued exploration.

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.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
As businesses adopt functionalities in cloud computing, it’s imperative that IT operations consistently ensure cloud systems work correctly – all of the time, and to their best capabilities. In his session at @BigDataExpo, Bernd Harzog, CEO and founder of OpsDataStore, will present an industry answer to the common question, “Are you running IT operations as efficiently and as cost effectively as you need to?” He will expound on the industry issues he frequently came up against as an analyst, and...
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking questions to analyze and troubleshoot your infrastructure, to provisioning storage with snapshots, recovery and replication, your wildest sci-fi dream has come true. In his session at @DevOpsSummit at 20th Cloud Expo, Dan Florea, Director of Product Management at Tintri, will provide a ChatOps demo where you can talk to your storage and manage it from anywhere, through Slack and similar services ...
SYS-CON Events announced today that HTBase will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. HTBase (Gartner 2016 Cool Vendor) delivers a Composable IT infrastructure solution architected for agility and increased efficiency. It turns compute, storage, and fabric into fluid pools of resources that are easily composed and re-composed to meet each application’s needs. With HTBase, companies can quickly prov...
SYS-CON Events announced today that Linux Academy, the foremost online Linux and cloud training platform and community, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Linux Academy was founded on the belief that providing high-quality, in-depth training should be available at an affordable price. Industry leaders in quality training, provided services, and student certification passes, its goal is to c...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), will provide an overview of various initiatives to certifiy the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldw...
SYS-CON Events announced today that Technologic Systems Inc., an embedded systems solutions company, will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Technologic Systems is an embedded systems company with headquarters in Fountain Hills, Arizona. They have been in business for 32 years, helping more than 8,000 OEM customers and building over a hundred COTS products that have never been discontinued. Technologic Systems’ pr...
SYS-CON Events announced today that Auditwerx will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Auditwerx specializes in SOC 1, SOC 2, and SOC 3 attestation services throughout the U.S. and Canada. As a division of Carr, Riggs & Ingram (CRI), one of the top 20 largest CPA firms nationally, you can expect the resources, skills, and experience of a much larger firm combined with the accessibility and attent...
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
SYS-CON Events announced today that Loom Systems will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
SYS-CON Events announced today that Infranics will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Since 2000, Infranics has developed SysMaster Suite, which is required for the stable and efficient management of ICT infrastructure. The ICT management solution developed and provided by Infranics continues to add intelligence to the ICT infrastructure through the IMC (Infra Management Cycle) based on mathemat...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
SYS-CON Events announced today that SD Times | BZ Media has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. BZ Media LLC is a high-tech media company that produces technical conferences and expositions, and publishes a magazine, newsletters and websites in the software development, SharePoint, mobile development and commercial UAV markets.
"I think that everyone recognizes that for IoT to really realize its full potential and value that it is about creating ecosystems and marketplaces and that no single vendor is able to support what is required," explained Esmeralda Swartz, VP, Marketing Enterprise and Cloud at Ericsson, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...