Zijin Group's Profit Increased 68% in First Half of 2018
2018/08/28 7468

Zijin Group has benefited from robust sales and price hikes in both copper and zinc and increased its first-half-year profit of 2018 by 2.526 billion RMB, representing an approximately 68% year-on-year rise; during the same period, the Group’s revenue reached 49.814 billion RMB, a 32.75% increase compared to a year ago, and the net operating cash flow amounted to 4.981 billion RMB, an increase of 1.675 billion RMB year-on-year.

By August 24, the Group was listed No. 1 in terms of revenue and No. 2 in terms of profit among all the publicly listed gold-mining companies around the globe.

Specifically, the Group has seen its mined copper’s sales volume up 25.6% while the price upped 13.4% YOY; meanwhile, the Group has also seen its mined zinc’s sales volume up 5.7% while the price upped 21.9% compared to a year ago. Because of that solid performance in the market, the group achieved an 870-million-RMB-worth margin in mined copper and a 1.17-billion-RMB-worth margin in mined zinc.

The latest estimates indicated that, by the end of June 2018, Zijin has a total asset of 90.989 billion RMB, which represents a 1.6% increase from the start of this year.

Dedicated to creating a global tech-leading, high-performance mining company, Zijin has taken a great effort to improve its progress both internally and externally. According to the Group’s Half-Year Report Ended on June 30, 2018, which was publicly released last Friday on August 24, Zijin has taken those key measures as following to achieve the robust profit for the first half of 2018.

Firstly, Zijin continued to deepen reform, introduced innovation in management to release growth potentials. During the reporting period, the Group ensured legal compliance in corporate governance, the reform in business-based management system was deepened to stimulate the dynamics of business segments. Moreover, the talent development scheme was enhanced, especially with focus on global competition trends. Also, the level of modern technology application has increase.

Secondly, Zijin has taken advantage of the price hikes in copper and zinc during the reporting period, and achieved a good performance in profit making.

Thirdly, Zijin’s overseas projects have consistently released their production potentials. Since the launch of its production in Kolwezi Cooper Mine in the Democratic Republic of the Congo in the second half of 2017, both copper production and sales have increased significantly; the Kamoa Copper project in DR Congo has had a strategic investment from CITIC Metal to speed up its copper mine development, among others. By the end of June 2018, the mined gold, copper and zinc from Zijin’s overseas projects reached 8.18 tons, 25,700 tons and 55,600 tons respectively, accounting for 48.43%, 21.50% and 37.47% of the Group’s total. Currently, Zijin is working aggressively to bid for several merger and acquisition projects overseas.

Fourthly, Zijin has paid a high importance to safety and environmental protection, and continued practicing its corporate social responsibility. During the reporting period, the Group has taken strict occupational safety measures in mines both at home and overseas. It has put a high-standard Green Mines development plan in place, rebuilding trees and fighting environmental pollution, with Zijinshan Gold & Copper Mine, Ashele Copper Mine and Wuhou Zijin publicly reported on media for their environmental rehabilitation progress.   

Fifthly, Zijin has continued its progress in mine exploration, and the volume of its metal reserves has increased significantly. During the reporting period, the Group has invested 99 million RMB into mine exploration, which resulted in a to-be-verified increase in gold, copper and lead-zinc deposits by 13.48 tons, 2.6875 million tons, and 53,200 tons respectively, exceeding the Group’s earlier target for the increase in metal deposits.

Finally, Zijin has continued to improve its technological innovation system, and take a great effort in key technology research and development as well as in engineering construction and design projects.