Zijin Mining's profits plunge 60%

Zijin Mining Group, China's largest listed gold producer, has announced that its net profits plunged nearly 60 percent during the first half despite higher metal prices.

The firm, which also mines copper, zinc and lead, said its net profits hit 538.35 million yuan (about 81.57 million U.S. dollars) during the first six months, down 59.86 percent year on year, according to a statement filed to the Shanghai Stock Exchange.

Revenues barely budged during the first half, reaching 38.89 billion yuan. Assets rose to 87.49 billion yuan at the end of June, up 4.27 percent year on year.

Prices of gold rose dramatically as the metal has been seen as safe haven, while base metal prices also rebounded during the first half. However, due to hedging losses and other costs, the firm's profits still slumped, the statement said.

Gold output dipped 11.63 percent year on year to 110,142 kg, and its sales accounted for over 60 percent of revenues. Copper output hit 273,701 tonnes, an increase of around 30 percent, and zinc production jumped 24.52 percent to 225,349 tonnes.

Source : XINHUA