VANCOUVER, Nov. 14, 2018 (GLOBE NEWSWIRE) — China Gold International Resources Corp. Ltd. (TSX: CGG; HKEx: 2099) (the “Company” or “China Gold International Resources”) reports on the Company’s financial and operational results for the three months (“Q3”, or “third quarter 2018”) and nine months (“nine months 2018”) ended September 30, 2018. This news release should be read in conjunction with the Company’s Financial Statements, Notes to the Financial Statements and Management’s Discussion and Analysis.
Selected Production and Financial Highlights: Q3 2018Compared to Q3 2017
- Revenue increased by 61% to US$158.8 million from US$98.5 million for the same period in 2017.
- Mine operating earnings increased by 30% to US$35.1 million from US$27.0 million for the same period in 2017.
- Net profit after income taxes decreased from US$17.4 million for the 2017 period to a loss of US$4.6 million in 2018, mainly driven by foreign exchange loss of US$11.0 million.
- Gold production from the CSH Mine decreased by 28% to 33,468 ounces from 46,621 ounces for the same period in 2017.
- The total production cost of gold for the three months ended September 30, 2018 increased to US$1,238 per ounce compared to US$1,041 for the three month 2017 period. The cash production cost of gold for the three months ended September 30, 2018 increased by approximately 23% to US$805, from US$657 per ounce for the same period in 2017, mainly due to an increase in waste stripping costs and significantly lower grade.
| CSH Mine | Three months ended September 30, | |
| 2018 | 2017 | |
| Total production cost(1) (US$ per ounce) | 1,238 | 1,041 |
| Cash production cost(1)(US$ per ounce) | 805 | 657 |
| (1) Non-IFRS measure. | ||
- Copper production from the Jiama Mine increased by 156% to 16,515 tonnes (approximately 36.4 million pounds) from 6,439 tonnes (approximately 14.2 million pounds) for the same period in 2017. Gold produced was 17,392 ounces compared to 12,200 ounces for the same period in 2017.
- In the third quarter of 2018, unit total production cost after by-products credits was higher compared to the same period in 2017 due to lower grades of ore produced from the use of the open-pit mine in Phase II and higher amortization cost. Unit cash production cost after by-products credits for the three month period in 2018 was approximately 10% higher due to lower grades of copper compared to the same 2017 period.
| Jiama Mine | Three months ended September 30, | |
| 2018 | 2017 | |
| Total production cost(1) (US$) of copper per pound after by-products credits(2) | 1.71 | 1.36 |
| Cash production cost(3) (US$) of copper per pound after by-products credits(2) | 1.11 | 0.99 |
| (1) Production costs include expenditures incurred at the mine sites for the activities related to production including mining, processing, mine site G&A and royalties etc. (2) By-products credit refers to the sales of gold and silver during the corresponding period. (3) Non-IFRS measure. |
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Selected Production and Financial Highlights: Nine Months 2018 Compared to Nine Months 2017
- Revenue increased by 46% to US$407.6 million from US$278.6 million for the same period in 2017.
- Mine operating earnings increased by 9% to US$77.4 million from US$71.1 million for the same period in 2017.
- Net profit after income taxes decreased from US$44.4 million for the 2017 period to a loss of US$2.2 million in 2018.
- Gold production from the CSH Mine decreased by 19% to 103,390 ounces from 126,959 ounces for the same period in 2017.
- Copper production from the Jiama Mine increased by 78% to 37,313 tonnes (approximately 82.3 million pounds) from 20,939 tonnes (approximately 46.2 million pounds) for the same period in 2017. Gold produced was 48,112 ounces compared to 29,817 ounces for the same period in 2017.
Mr. Xin Song, Chairman of the Company, commented, “We have been pleased with the performance of both our mines during the past quarter. The Company is on track to exceed its 2018 production guidance despite the fact that both the Jiama and CSH mines are processing lower grade areas of their respective mine plans. As we work through these lower grade areas it should position the Company for higher margins in subsequent periods”.
Analysts, investors, media and general public are encouraged to visit the Company’s website at www.chinagoldintl.com, The Stock Exchange of Hong Kong Limited’s website at www.hkex.com.hk or SEDAR at www.sedar.comto view the complete set of the financial statements and MD&A or contact the Company with any questions.
About China Gold International Resources
China Gold International Resources Corp. Ltd. is based in Vancouver, BC, Canada and operates both profitable and growing mines, the CSH Gold Mine in Inner Mongolia, and the Jiama Copper-Polymetallic Mine in Tibet Autonomous Region of the People’s Republic of China. The Company’s objective is to continue to build shareholder value by growing production at its current mining operations, expanding its resource base, and aggressively acquiring and developing new projects internationally. The Company is listed on the Toronto Stock Exchange (TSX: CGG) and the Main Board of The Stock Exchange of Hong Kong Limited (HKEx: 2099).
For further information on China Gold International Resources Corp. Ltd., please refer to its SEDAR profile at www.sedar.com or contact Tel: 604.609.0598, Email:info@chinagoldintl.com, Website:www.chinagoldintl.com.
Cautionary Note About Forward-Looking Statements
Certain information regarding China Gold International Resources contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although China Gold International Resources believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. China Gold International Resources cautions that actual performance will be affected by a number of factors, most of which are beyond its control, and that future events and results may vary substantially from what China Gold International Resources currently foresees. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration results, continued availability of capital and financing and general economic, market or business conditions. The forward-looking statements are expressly qualified in their entirety by this cautionary statement. The information contained herein is stated as of the current date and subject to change after that date.