CGG:CC - China Gold International Resources Reports 2022 Second Quarter and First Half Results
(TheNewswire)
VA NCOU VE R – TheNewswire - August 15 , 202 2 - C h i n a G o l d I n t e rn a ti o na l R es o u r c es C o rp . L t d . ( T S X :C G G ) ; ( H KE x : 2099 ) (“ C h i n a G o ld I n t e r na t i ona l R es o u r c e s ” o r t h e “ C o m p a n y ” ) is p l eas ed t o report financial and operational results for the threemonths (“ Q2 ” or “ secondquarter ”) and six months (“ first half ” or“ six months ”) ended June 30, 2022. This news release should be read inconjunction with the Company’s Financial Statements, Notes to theFinancial Statements and Management’s Discussion and Analysis(“ MD&A ”).
For detailed information, please read the Company’sFinancial Statements and MD&A which are available on SEDAR’swebsite at www.sedar.com, The Stock Exchange of Hong Kong Limited’swebsite at www.hkex.com.hk, the Company's website atwww.chinagoldintl.com, or call the Company at +1-604-609-0598 andemail to info@chinagoldintl.com.
2022 Q2 PRODUCTIONAND FINANCIAL HIGHLIGHTS
• Revenue decreased by 4% to US$292.0million from US$304.9 million for the same period in 202 1 .
• Mine operating earnings decreased by 7 % to US$ 117.7 million from US$125.9 million forthe same period in 202 1 .
• Net income decreased by 19 % or US$19.0 million to US$81.7million from US$100.7 million for the same period in 202 1, of which foreign exchange lossresulted in a decrease of US$16.5 million.
• Cash flow from operation increased by 1 % to US$107.6 millionfrom US$106.2 million for the same period in 202 1 .
• Total gold production decreased by 8 % to 65,527 ounces from 71,225 ounces forthe same period in 202 1 .Among them, the gold output of CSH Gold Mine increased by 4%year-on-year. Due to the adjustment of mining plan, the by-productgold output of Jiama Mine decreased.
• Total copper production decreased by1 1 % to 47.1 million pounds ( 21,356 tonnes) from 52.6 million pounds(23,875 tonnes) for the same period in 2021 due to the adjustment ofthe mining plan of Jiama Mine with increase in the utilization rate oflow-grade ores.
2022 FIRST HALFPRODUCTION AND OPERATION HIGHLIGHTS
• Revenue increased by 3 % to US$596 million from US$577million for the same period in 202 1 .
• Mine operating earnings increased by 6 % to US$ 223.2 million from US$ 209.7 million for the same period in202 1 .
• Net income decreased by 3% or US$4.2million to US$153.5 million from US$157.7 million for the same periodin 202 1, mainly due to aforeign exchange loss of US$16.5 million.
• Cash flow from operation decreased by 3 % to US$268.4 millionfrom US$276.4 million for the same period in 202 1 .
• Total gold production slightly decreasedby 1 % to 124,110 ounces from 124,746 ounces forthe same period in 202 1 .
• Total copper production decreased by 6 % to 95.4 million pounds ( 43,279 tonnes) from 101.6 millionpounds (46,066 tonnes) for the same period in 202 1 . This was mainlydue to the adjustment of mining plan at Jiama Mine with increasedmining rate of low-grade ores during the period of high copper price.The company maintains the ability to improve run-of-mine ore grade torespond to market conditions and to mitigate market risks.
• The Company continues to focus itsefforts on optimizing the operation at both mines, stabilizing theJiama Mine’s production and potentially extending the mine life ofCSH Mine.
• The Company has not experienced anysignificant impact on its operations by the COVID-19 pandemic. Both ofthe Company’s mines have been able to operate and sell productswithout significant interruption during the six months ended June 30,2022. The Company continues to closely monitor the health of itsemployees and supply chains to be able to respond to any potentialdisruptions, should any arise. The Company is also managing its cashreserves to be able to withstand any financial ramifications ofpotential disruptions.
The Company’s Chairman and CEO, Mr. Liangyou Jiang,stated, “In the first half of 2022, China Gold InternationalResources continued its good momentum of operation. The gold output ofCSH Gold Mine increased by 13% compared with the same period of lastyear, and the cash production cost decreased by 14%; At Jiama Mine,the mining plan was adjusted to take advantage of high copper pricesby appropriately increasing the mining rate of low-grade ores. Therecovery rates of all metals have seen a steady improvement. In thesecond half of this year, the Company will continue to focus onoperation optimization and risk prevention and control to ensure therealization of the goals set at the beginning of the year.”
About China GoldInternational Resources
China Gold International Resources is a gold and basemetal mining company incorporated in BC, Canada and operates twomines, the CSH Gold Mine in Inner Mongolia, China and the JiamaCopper-Gold Polymetallic Mine in Tibet, China. The Company’sobjective is to build shareholder value through growing production atits current mining operations, expanding its resource base, andacquiring and developing new projects internationally. The Company islisted on the Toronto Stock Exchange (TSX: CGG) and the Main Board ofThe Stock Exchange of Hong Kong Limited (HKEx: 2099).
For further information on the Company, please refer toSEDAR’s website at www.sedar.com, The Stock Exchange of Hong KongLimited’s website at www.hkex.com.hk, the Company's website atwww.chinagoldintl.com, or call the Company at +1-604-609-0598 andemail to info@chinagoldintl.com.
Cautionary NoteAbout Forward-Looking Statements
Certain information regarding ChinaGold International Resources contained herein may constituteforward-looking statements within the meaning of applicable securitieslaws. Forward-looking statements may include estimates, plans,expectations, opinions, forecasts, projections, guidance or otherstatements that are not statements of fact. Although China GoldInternational Resources believes that the expectations reflected insuch forward-looking statements are reasonable, it can give noassurance that such expectations will prove to have been correct.China Gold International Resources cautions that actual performancewill be affected by a number of factors, most of which are beyond itscontrol, and that future events and results may vary substantiallyfrom what China Gold International Resources currently foresees.Factors that could cause actual results to differ materially fromthose in forward-looking statements include market prices,exploitation and exploration results, continued availability ofcapital and financing and general economic, market or businessconditions. The forward-looking statements are expressly qualified intheir entirety by this cautionary statement. The information containedherein is stated as of the current date and subject to change afterthat date.
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