CGG:CC - China Gold International Resources Reports 2023 Third Quarter Results

(TheNewswire)

Va ncou ve r, BC - TheNewswire - November 14 , 202 3 - 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 rt h e “ C o m p a n y ” ) report s financialand operational results for the three months (“ Q 3 ” or “ third quarter ”) and nine months(“ nine months ”) ended September 30,202 3 . This news releaseshould be read in conjunction with the Company’s FinancialStatements, Notes to the Financial Statements and Management’sDiscussion 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.

202 3 THIRD QUARTER PRODUCTION AND FINANCIAL HIGHLIGHTS

•        Revenue decreased by 7 6 % to US$ 62 . 3 million from US$2 55 .0 million for the same period in 2022.

•        Mine operating loss of US$14.3 million,decreased by US$90.0 million from mine operating earnings of US$75.7million for the same period in 2022.

•        Net loss of US$30.8 million, decreased by US$54. 2 million from net income of US$23.4 million for the sameperiod in 2022.

• Cash flow used inoperation of US$31.7 million, decreased by US$121.5 million from cashflow from operation of US$89.8 million for the same period in2022.

•        Total gold production decreased by 40 % to 33,110 ounces from 54,734 ounces for the same period in2022.

•        Total copper production was nil as allproduction was halted at the Jia m a M ine during Q3.Copper production was 46.9 million pounds (approximately 21,254 tonnes) for the same period in 2022.

202 3 NINE MONTHS PRODUCTION AND FINANCIALHIGHLIGHTS

•        Revenue decreased by 5 4 % to US$3 88 . 1 million from US$ 851 .0 million for the same period in 2022.

•        Mine operating earnings decreased by 72 % to US$ 82.3 million from US$ 298.9 million for the same period in2022.

•        Net loss of US$5.5 million , decreased by US$182. 4 million from net income of US$176.9 million for thesame period in 2022.

• Cash flow fromoperation decreased by 94 % to US$ 22 . 5 million from US$ 35 8. 2 million forthe same period in 2022.

•        Total gold production decreased by 32 % to 122,463 ounces from 178,844 ounces for the same period in 2022.

•        Total copper production decreased by 69% to 44.0 million pounds (approximately 19,967 tonnes) from 142.3 millionpounds (approximately 64,532 tonnes) for the same period in2022.

The decrease in production and profit was mainlyattributed to the suspension of operations of the Jiama Mine sinceMarch 27, 2023 due to the overflow at the Guolanggou tailings pond. Asa result of the suspension, the Company did not record any productsales from the Jiama Mine during Q2 & Q3 2023, with the exceptionof a minor amount of molybdenum.

The repair and reinforcement works at the GuolanggouTailings Dam have been fully completed, and the mine is ready toresume production upon receipt of the government's review andacceptance. The plan for underground backfilling has been submitted tothe Lhasa Municipal Emergency Management Bureau and is currently inthe pro cess ofreview and approval. Alternative tailings disposal plans are under thegovernment's review for compliance with relevant standards beforeimplementation.  The construction of the Phase III tailings dam atthe Jiama Mine is on schedule.

Operations at CSH Gold Mine remain stable. The open-pitoperations at the CSH gold mine are nearing the end of its mine life.With increased pit's depth, the stability of the open pit slopes isbecoming more and more prominent in determining the operations plan.Ensuring slope stability and avoiding systematic risks at this stageare the Company’s top priority to ensure safe and sustainableproduction. CSH Gold Mine plans to reduce the mining rate at the endof the third quarter and in the fourth quarter in order to enhance themanagement and maintenance of slopes. Ore stripping, as well as heapleach and processing plant processes, will continue to operate asusual during the mining volume adjustment period.

The Company’s Chairman and CEO, Mr. Junhu Tong,stated, “Due to the suspension of the production of the Jiama Mine,the Company’s performance for the thirdquarter of 2023 continues to show an expecteddecline. The Jiama Mine has basically met theconditions for resumption of production, and the company ismaintaining efficient communication with the government to strive for an early resumption of production. CSH Gold Minewill continue to maintain a stable production level while ensuringsafe production. We are vigorously advancing the mine development ofthe underground resources to create additional value and extend themine life of CSH Gold Mine. We will continue to operate our businesswith a high degree of responsibility. Thanks to our shareholders andstakeholders for their understanding and support.”

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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