Zijin’s Third-Quarter Profit Falls 44% on Lower Gold PriceMichelle Yun
Zijin Mining Group Co., China’s biggest gold miner by market value, said third-quarter profit fell 44 percent after bullion prices declined.
Net income was 691.3 million yuan ($114 million), compared with 1.23 billion yuan a year earlier, the Shanghang, Fujian province-based company said yesterday in a Shanghai stock exchange filing, citing Chinese accounting standards. Sales decreased 19 percent to 11.04 billion yuan.
“The full-year performance may have a relatively large slump from the last year,” the company said yesterday, citing lower product prices, inventory value and ore grade.
Gold tumbled into a bear market in April and is heading for its first annual drop in 13 years as some investors lost faith in its store of value. The metal’s slump has prompted producers including Newcrest Mining Ltd. and Barrick Gold Corp. to book impairments and study asset sales.
Zijin dropped 2.3 percent to 2.51 yuan in Shanghai and gained 1.1 percent to HK$1.80 in Hong Kong at the close. The stock has slumped 41 percent this year in Hong Kong trading.
The company also said in an announcement dated yesterday it sold 2.5 billion yuan of bonds on Oct. 22 and received the proceeds yesterday. The sale is part of a mandate to issue mid-term bonds of not more than 10 billion yuan.