29 Jul 2009 14:18

Jiangxi Copper foresees net profit drop of up to 64 pct in H1

Shanghai. July 29. INTERFAX-CHINA - Jiangxi Copper Co. Ltd., China's largest copper smelter, announced on July 29 that it estimates its net profit will decrease by between 57 percent and 64 percent year-on-year in the first half of 2009.

As Jiangxi Copper recorded a net profit of RMB 3.08 billion ($450.86 million) in the first half of 2008, the company's net profit for the same period of 2009 would stand between RMB 1.11 billion ($162.48 million) and RMB 1.32 billion ($193.23 million).

The company attributed the decrease to plunging copper and copper product prices this year.

A Jiangxi Copper employee, who asked to remain anonymous, told Interfax that as copper prices on both the London Metal Exchange and Shanghai Futures Exchange are in an uptrend due to a stronger global economy, it is expected that the company's profitability will improve in the second half of the year.

The company's interim financial report is expected to be released on Aug. 25, 2009.

Jiangxi Copper has an annual copper production capacity of 900,000 tons. It plans to produce 800,000 tons this year.

The most-traded November copper contract on the SHFE closed at RMB 44,830 ($6,562.34) per ton on July 28, up 1.01 percent from the previous trading day, while the three-month copper contract on the LME closed at $5,570 per ton on July 27, up 0.72 percent.

Jiangxi Copper's share price stood at RMB 42.78 ($6.26) at 2.30 p.m. Beijing time on July 29 on the Shanghai Stock Exchange, down 8.14 percent from the previous trading day, and at HKD 16.80 ($2.17) at 12.30 p.m. on the Hong Kong Stock Exchange, down 5.83 percent.