China Gold International Resources Corp. Ltd. reported on the company’s financial and operational results for the three months and six months ended June 30. Revenue increased by 15% to US$163.2 million from US$142.1 million for the same period in 2018.
Mine operating earnings decreased by 80% to US$7.3 million from US$35.8 million for the same period in 2018.
Net profit after tax decreased from US$0.4 million for the 2018 period to a net loss after income taxes of US$23 million for the same period in 2019.
The company’s total production was 55,503 ounces (oz) of gold and 16,126 metric tons (approximately 35.6 million pounds) of copper.
Gold production from the CSH mine increased by 18% to 39,875 oz from 33,880 oz for the same period in 2018.
The total production cost of gold for the three months ended June 30, increased to US$1,329 per oz compared to US$1,097 for the three-month 2018 period. The increase in production cost is attributed to the difference between recoverable gold placed on pad, which increased by approximately 112% and gold production, which increased by 18% for the three months ended June 30, according to the company.
Higher volumes of gold production also contributed to an approximately 33% increase in amortization of mine development costs. The cash production cost of gold for the three months ended June 30 remained consistent compared with the same period in 2018.
Copper production from the Jiama Mine increased by 17% to 16,126 metric tons (approximately 35.6 million lb) from 13,738 mt (approximately 30.3 million lb) and gold produced was 15,628 oz compared to 20,497 oz for the same period in 2018.
In the second quarter of 2019, both total production cost of copper per pound after byproducts and cash production cost of copper per pound after byproduct increased as compared to the same period in 2018 due to lower grades of ores produced from the use of open-pit mine. The Jiama Mine is currently developing a new section of the underground mine, which is expected to have higher grade ore, with anticipated completion by the end of 2020.
Liangyou Jiang, CEO and executive director, said, “We delivered a quarter with really strong operating cash flow sufficient to cover the next 12 months. We are making considerable efforts to position ourselves and adapt to the current market conditions and the opportunities ahead of us.”
China Gold International Resources Corp. Ltd. is based in Vancouver, British Columbia, Canada, and operates the CSH Gold Mine in Inner Mongolia and the Jiama Copper-Polymetallic Mine in Tibet Autonomous Region of the People’s Republic of China.