Welcome!

News Feed Item

China Gold International Reports Year-End 2013 Results and Provides 2014 Outlook

VANCOUVER, March 25, 2014 /PRNewswire/ - China Gold International Resources Corp. Ltd. (TSX: CGG; HKEx: 2099) (the "Company" or "China Gold International Resources") is pleased to report Year-End 2013 results and provide 2014 Outlook.

2013 Financial, Production and Operating Highlights

  • Revenues decreased by 9%, or US$29.8 million, from US$332.4 million for the year ended December 31, 2012, to US$302.6 million for the year ended December 31, 2013.
  • Revenues from the Chang Shan Hao Gold Mine (the "CSH Mine", the "CSH Gold Mine" or "CSH") accounted for 59%, or US$178.1 million (2012: US$223.8 million), of total revenue for the year. Decline in CSH's 2013 revenue was due to the substantial drop in gold prices and lower production level.
  • Revenue from the Jiama Copper-Gold Polymetallic Mine (the "Jiama Mine" or "Jiama") accounted for 41%, or US$124.5 million (2012: US$108.6 million), of total revenue for the year. This revenue growth of US$15.9 million was mainly attributed to increased production levels and improved recovery rates.
  • Cost of sales decreased by 3%, or US$6.8 million, from US$207.5 million for the year ended December 31, 2012 to US$200.7 million for the same period in 2013. The decrease in cost of sales is primarily attributable to the increase in recovery rates, in addition to operation optimization of the ore processing facilities at both mines.
  • Mine operating earnings for the Company decreased by 18%, or US$23 million, from US$124.9 million for the year ended December 31, 2012 to US$101.9 million for the year ended December 31, 2013.
  • Net income of the Company decreased by 22%, or US$16.4 million from US$73.5 million for the year ended December 31, 2012 to US$57.1 million for the year ended December 31, 2013.
  • Gold production from the CSH Mine mine slightly decreased by 5.8% from 139,443 ounces in 2012 to 131,418 ounces in 2013.  This decline is partially due to lower grades of ore mined and longer recovery periods caused by the growing height of the leaching heap.
  • The accumulative project-to-date gold recovery at CSH has been steadily increasing over the last few years: from 39% in 2010, to 46% in 2011, to 53% in 2012 and to 54% in 2013.
  • The total production cost of gold per ounce and cash production cost of gold per ounce for the year ended December 31, 2013 both decreased compared with the same period in 2012. The primary reason for this decline is lower waste rock expenditures in 2013.

CSH Mine

Year ended December 31,


2013

2012

Total production cost (US$) of gold per ounce

866

928

Cash production cost* (US$) of gold per ounce

707

825

* Non-IFRS measure



  • The company has successfully completed a new 30,000 tonne per day ("tpd") stand-alone crushing, heap leaching and ADR (Adsorption, Desorption and Refining) plant in addition to the existing 30,000 tpd facility. A new 80 kilometer long government-built 110 Kilovolt ("KV") power line was completed by end of November 2013. CSH Mine's processing capacity increased from 30,000 tpd to 60,000 tpd.
  • Copper production from the Jiama Mine increased by 10% from 25,820,417 pounds in 2012 to 28,323,626 pounds in 2013. This third full year of increasing production for the Jiama Mine is mainly due to higher volumes of ore mined and improved recovery rates.  
  • The cash production cost of copper per pound decreased during the current period due to higher recovery rates realized during the year. Total production cost of copper per pound also decreased during the current period due to a lower amortization of mining rights with an increased ore reserve base in Jiama Mine. The Company is closely monitoring production costs at the Jiama Mine and will continue to make efforts to reduce costs.

Year ended December 31,

Jiama Mine

2013

2012

Total production cost* (US$) of copper per pound

3.55

4.13

Total production cost* (US$) of copper per pound

after by-products credits***

2.30

2.58




Cash production cost** (US$) per pound of copper

2.90

3.04

Cash production cost**  (US$) of copper per pound

after by-products credits***

1.65

1.49

* Production costs include expenditures incurred at the mine sites for the activities related to production including mining, processing, mine site G&A and royalties etc.
** Non-IFRS measure
*** By-products credit refers to the sales of gold and silver during the corresponding period.

  • On December 20, 2013, in accordance with the schedule, the Phase II expansion NI 43-101 compliant feasibility study for Jiama has been successfully completed by the Changchun Gold Design Institute in conjunction with independent consulting firm Mining One and the Company's management. The results showed measured and indicated copper mineral resources increased to 1,486 million tonnes averaging 0.41% Cu from 1,053 million tonnes averaging 0.44% Cu; contained copper metal increased to 6.14 million tonnes from 4.64 million tonnes. The proved and probable copper mineral reserves increased to 441 million tonnes at a grade of 0.61% Cu from 363 million tonnes at 0.77% Cu. The feasibility study estimated that the project has an NPV (9%) of $1.3 billion and is expected to generate a nominal after tax cash flow of $5.8 billion.
  • By the end of December 2013, the Jiama Mine completed its 2013 drilling program for the total of 3,434 meters in the existing Tongqianshan open pit. Drilling results will be available in the first half of 2014. The major goals are to further define the main high grade ore body in the current open pit mining area and also to better understand the geological structural on controlling metallogenic regularity. Total exploration expenditures were approximately US$ 4.32 million.

Mr. Bing Liu, CEO of the Company, commented, "We are very pleased with the operational progress on both mines. Good production results were achieved for the sixth consecutive year at the CSH gold mine. The Jiama Copper Polymetallic Mine achieved its third full year of increasing production. We have seen significant cost reduction on both of our mines. We have delivered on our commitment to the shareholders and completed expansion construction at CSH ahead of the schedule. We finished Jiama's feasibility study on time. 

Last year presented many challenges to us, such as metal prices fluctuations.  Those challenges are not uncommon in the mining industry.  Our experienced management team and a solid portfolio of outstanding producing assets will help us withstand those challenges and deliver strong operational results to our shareholders".

2014 Production and Operating Outlook:

  • Organic growth, cost management and international expansion continue to be the Company's main goals for 2014. 
  • The Company will continue to leverage the technical and operating experience of the Company's controlling shareholder, China National Gold Group Corporation ("CNG"), to improve operations at its mines, increase production and minimize costs.
  • To fulfill its growth strategy, the Company is continually working with CNG and other interested parties to identify potential international mining opportunities, mainly outside of China, which can be readily and quickly brought into production with the possibility of further expansion through continued exploration.
  • The 2014 gold production for the Company is expected to be approximately 208,000 ounces.
  • The 2014 copper production for the Company was previously expected to be about 50 million pounds. As announced in the previous news release on February 27, 2014, the Company is not able to provide definitive 2014 production guidance for Jiama Mine as the mine is dealing with reduced power supply that has affected the central Tibet region during the winter months.  The Tibet Autonomous Region government and the Central Government of China are currently progressing a power supply development plan. The Company has implemented counteractive measures to mitigate the effect of power shortages, and anticipates that the Jiama Mine will be able to resume full production in April or May. The Company will need to confirm its 2014 guidance for the Jiama Mine in mid-2014. 
  • At CSH, the ramp-up of production and test runs on the newly build 30,000 tpd crusher and ADR plant are in progress. The Company expects the first gold output from the new 30,000 tpd facility in second quarter of 2014 and gold production is expected to reach about 260,000 ounces per annum by 2015.
  • Jiama's production capacity will grow in 2 stages. At the completion of stage one, scheduled for the second half of 2014, the new mill's capacity is expected to grow from 6,000 tpd to 28,000 tpd of ore. Stage two construction of an additional 22,000 tpd capacity is expected to be completed by the second half of 2015. This expansion will grow Jiama's processing capacity nearly 8 times from 6,000 tpd in 2013 to 50,000 tpd in 2015.  By 2016, copper production is expected to reach 176,000,000 pounds.

2013 Annual Results Investor and Media Presentation

Management will hold its 2013 Annual Results Investor and Media Presentation in Hong Kong on March 31st, 2014 at 10 a.m. (Hong Kong time). Year-End 2013 results and performance will be discussed and the question and answer period will be held.

Analysts, investors and media are encouraged to visit the following link on the company's website (http://www.chinagoldintl.com/investors/events/) for the details of this event.

For a detailed look at the financial statements and MD&A for the year ended December 31, 2013, please visit the Company's website at www.chinagoldintl.com, The Stock Exchange of Hong Kong Limited's website at www.hkex.com.hk or SEDAR at www.sedar.com.

About China Gold International Resources

China Gold International Resources Corp. Ltd. is based in Vancouver, BC, Canada and operates both profitable and growing mines, the CSH Gold Mine in Inner Mongolia, and the Jiama Copper-Polymetallic Mine in Tibet Autonomous Region of the People's Republic of China. The Company's objective is to continue to build shareholder value by growing production at its current mining operations, expanding its resource base, and aggressively acquiring and developing new projects internationally. The Company is listed on the Toronto Stock Exchange (TSX: CGG) and the Main Board of The Stock Exchange of Hong Kong Limited (HKEx: 2099).

Cautionary Note About Forward-Looking Statements

Certain information regarding China Gold International Resources contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although China Gold International Resources believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. China Gold International Resources cautions that actual performance will be affected by a number of factors, most of which are beyond its control, and that future events and results may vary substantially from what China Gold International Resources currently foresees. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration results, continued availability of capital and financing and general economic, market or business conditions. The forward-looking statements are expressly qualified in their entirety by this cautionary statement. The information contained herein is stated as of the current date and subject to change after that date.

SOURCE China Gold International Resources Corp. Ltd.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Continuous Delivery makes it possible to exploit findings of cognitive psychology and neuroscience to increase the productivity and happiness of our teams. In his session at 22nd Cloud Expo | DXWorld Expo, Daniel Jones, CTO of EngineerBetter, will answer: How can we improve willpower and decrease technical debt? Is the present bias real? How can we turn it to our advantage? Can you increase a team’s effective IQ? How do DevOps & Product Teams increase empathy, and what impact does empath...
"I focus on what we are calling CAST Highlight, which is our SaaS application portfolio analysis tool. It is an extremely lightweight tool that can integrate with pretty much any build process right now," explained Andrew Siegmund, Application Migration Specialist for CAST, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Evatronix will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Evatronix SA offers comprehensive solutions in the design and implementation of electronic systems, in CAD / CAM deployment, and also is a designer and manufacturer of advanced 3D scanners for professional applications.
SYS-CON Events announced today that Synametrics Technologies will exhibit at SYS-CON's 22nd International Cloud Expo®, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Synametrics Technologies is a privately held company based in Plainsboro, New Jersey that has been providing solutions for the developer community since 1997. Based on the success of its initial product offerings such as WinSQL, Xeams, SynaMan and Syncrify, Synametrics continues to create and hone inn...
As many know, the first generation of Cloud Management Platform (CMP) solutions were designed for managing virtual infrastructure (IaaS) and traditional applications. But that's no longer enough to satisfy evolving and complex business requirements. In his session at 21st Cloud Expo, Scott Davis, Embotics CTO, explored how next-generation CMPs ensure organizations can manage cloud-native and microservice-based application architectures, while also facilitating agile DevOps methodology. He expla...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
DevOps promotes continuous improvement through a culture of collaboration. But in real terms, how do you: Integrate activities across diverse teams and services? Make objective decisions with system-wide visibility? Use feedback loops to enable learning and improvement? With technology insights and real-world examples, in his general session at @DevOpsSummit, at 21st Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, explored how leading organizations use data-driven DevOps to close th...
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software. They hope to capture value from emerging technologies such as IoT, SDN, and AI. Ultimately, irrespective of the vertical, it is about deriving value from independent software applications participating in an ecosystem as one comprehensive solution. In his session at @ThingsExpo, Kausik Sridhar, founder and CTO of Pulzze Systems, discussed how given the magnitude of today's application ...
Modern software design has fundamentally changed how we manage applications, causing many to turn to containers as the new virtual machine for resource management. As container adoption grows beyond stateless applications to stateful workloads, the need for persistent storage is foundational - something customers routinely cite as a top pain point. In his session at @DevOpsSummit at 21st Cloud Expo, Bill Borsari, Head of Systems Engineering at Datera, explored how organizations can reap the bene...
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...
You know you need the cloud, but you're hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You're looking at private cloud solutions based on hyperconverged infrastructure, but you're concerned with the limits inherent in those technologies. What do you do?
Sanjeev Sharma Joins June 5-7, 2018 @DevOpsSummit at @Cloud Expo New York Faculty. Sanjeev Sharma is an internationally known DevOps and Cloud Transformation thought leader, technology executive, and author. Sanjeev's industry experience includes tenures as CTO, Technical Sales leader, and Cloud Architect leader. As an IBM Distinguished Engineer, Sanjeev is recognized at the highest levels of IBM's core of technical leaders.
Recently, WebRTC has a lot of eyes from market. The use cases of WebRTC are expanding - video chat, online education, online health care etc. Not only for human-to-human communication, but also IoT use cases such as machine to human use cases can be seen recently. One of the typical use-case is remote camera monitoring. With WebRTC, people can have interoperability and flexibility for deploying monitoring service. However, the benefit of WebRTC for IoT is not only its convenience and interopera...
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, discussed the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, application p...
Mobile device usage has increased exponentially during the past several years, as consumers rely on handhelds for everything from news and weather to banking and purchases. What can we expect in the next few years? The way in which we interact with our devices will fundamentally change, as businesses leverage Artificial Intelligence. We already see this taking shape as businesses leverage AI for cost savings and customer responsiveness. This trend will continue, as AI is used for more sophistica...