31 Mar 2010 07:40

Zijin Mining's net profit up 17.84 pct in 2009

Shanghai. March 31. INTERFAX-CHINA - Dual Hong Kong Stock Exchange and Shanghai Stock Exchange-listed Zijin Mining Group Co. Ltd., China's leading gold miner, announced on March 31 that its net profit in 2009 rose by 17.84 percent year-on-year to around RMB 3.54 billion ($518.73 million).

The company's sales revenue also jumped by 23.39 percent year-on-year to RMB 20.96 billion ($3.07 billion) in 2009. The company attributed the increases to surging gold prices, as the global economic downturn drove a large amount of funds to the gold market.

In 2009, gold prices on the international market rose from the lowest point of $801.5 per ounce in January to a historical high of $1,226.6 per ounce in December, according to the report.

Zijin Mining expects gold prices this year will continue at the current high level, due to expectations of global inflation and uncertainties over the global economy. Meanwhile, the company also anticipates that base metals prices will be at high levels, as the global economy recovers.

In 2009, Zijin Mining produced 75.37 tons of gold, up 31.5 percent year-on-year, 84,826 tons of refined copper, 136,346 tons of zinc, 125.4 tons of silver, and 1.42 million tons of iron ore.

At the end of 2009, Zijin Mining held 714.65 tons of gold resources.

On March 31, the company's share price stood at RMB 8.2 ($1.2) at 11:00 a.m. Beijing time in Shanghai, and at HKD 6.16 ($0.793) at 11:00 a.m. Beijing time in Hong Kong, down 0.73 percent and 1.6 percent respectively from the previous trading day.