On March 24th Zijin Mining reported its 2016 annual results. For 2016, Zijin’s revenue hit RMB 78.85 billion yuan, up 6.12% compared to same period last year. Net profit was RMB 1.84 billion yuan, 11.12% higher than the previous year. Earnings per share was RMB 0.09 yuan. As of the end of 2016, the total assets of Zijin were RMB 89.22 billion yuan, up 6.32% as at 31 December 2015.
In 2016, all mines of Zijin produced 42.55 tonnes of gold (about 1.37 Moz), up 14.5% year-on-year (“YOY”); produced 154,958 tonnes of copper, up 3.09% YOY; and produced 250,013 tonnes of zinc, up 26.17% YOY. During this period, Zijin’s gold production ranks the first among China’s listed gold companies, and its copper production and zinc production also ranks top in China. Meanwhile, Zijin maintained relatively high profits.
In 2016, Zijin's overseas mines produced 18.32 tonnes of gold, accounting for 43% in Zijin's total gold production; and produced 73,700 tonnes of zinc, accounting for 29.49% in total zinc production. Porgera, as Zijin’s major contributor in gold production and profits, produced 7.47 tonnes of gold on Zijin's share.
In the past year, Zijin had achieved some progress in mines construction and resources exploration. Zijinshan gold and copper mine’s flotation mill with 25,000 tonnes nameplate capacity put into production, marking the start of Zijinshan’s copper development. Duobaoshan and its peripheral copper mine’s large scale construction officially launched. Wulagen zinc mine and Tuva polymetallic mine’s capacity has ramped up largely, and their preparation work of technology updated and expansion has started. Kolwezi copper mine’s construction went well with commissioning in 2017.
It is also worth mentioning that the Kamoa copper mine, still with great potential finding additional resources, boosts its copper resources to 33.34 Mt, equaling to one third total copper resources of China. Based on Zijin's interests in this project, the cost of achieving copper resources was 200 yuan per tonne, while the average cost of global M&A copper projects during 2014-2015 was 150 dollars per tonne. Till now, Zijin’s overseas gold, copper, and zinc resources accounting for 52.43%, 62.29% and 9.73% respectively in Zijin’s total resources.