March 27 (Bloomberg) -- Jiangxi Copper Co., China’s largest producer of the metal, recorded a 10 percent increase in second-half profit as higher copper production outweighed a drop in prices of the metal.
Net income was 2.5 billion yuan ($402 million) in the six months ended Dec. 31, compared with 2.27 billion yuan a year earlier. The result was derived by deducting six-month figures from full-year earnings released yesterday in a statement.
The company’s production capacity of copper concentrates rose 33 percent to 224,000 metric tons after mine expansions in 2010 and 2011 helped to boost earnings, BOCOM International Ltd. analyst Benjamin Pei said in a note dated March 8. Average prices of the metal in London fell 5.3 percent in the second half of last year from a year earlier.
Jiangxi Copper fell 0.7 percent to close at HK$16.92 in Hong Kong yesterday, before the earnings announcement. The benchmark Hang Seng Index climbed 0.3 percent.
Full-year profit fell to 5.17 billion yuan, according to the statement. The earnings beat the 5.16 billion yuan mean estimate of 18 analysts compiled by Bloomberg.
Copper consumption in China will jump 8 percent to a record 8.833 million metric tons this year, boosting global demand and creating a 6,000-ton deficit, compared with a surplus of 216,000 tons in 2012, according to Goldman Sachs Group Inc. The momentum of demand growth is strong with China’s urbanization process, Jiangxi Copper’s Chairman Li Baomin said March 5 in Beijing.
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