China Gold International Reports Year-End 2016 Results and Provides 2017 Outlook.
China Gold International
Resources Corp. Ltd.
______
Tel: 604-609-0598 Fax: 604-688-0598 E-mail: [email protected], www.chinagoldintl.com
Suite 660, One Bentall Centre
505 Burrard Street
Vancouver, BC
Canada V7X 1M4
China Gold International Reports Year-End 2016 Results and Provides 2017 Outlook.
VANCOUVER, March 30, 2017 - Chi na Gold International Resources Corp. Ltd. (TSX:
CGG; HKEx: 2099) (the “Company” or “China Gold International Re sources”) is pleased to
report Year-End 2016 results and provide 2017 Outlook.
FINANCIAL, PRODUCTION AND OPERATION HIGHLIGHTS
2016 Fourth quarter highlights
Revenue increased by 18% or US $14.6 million, from US$79.0 mill ion to US$93.6
million.
Mine operating earnings increased by 210% to US$13.0 million f rom US$4.2 million
for the same period in 2015.
Gold production from the CSH Mine decreased by 5% to 52,828 ou nces from
55,673 ounces for the same period in 2015.
Copper production from the Jiama Mine increased by 1% to 4,364 tonnes
(approximately 9.62 million po unds) from 4,339 tonnes (approxim ately 9.56 million
pounds) for the same period in 2015.
2016 Annual highlights
Revenue remained constant at US$338.6 million from US$339.9 mi llion for the
same period in 2015.
Mine operating earnings decreas ed by 11% to US$56.2 million fr om US$62.8
million for the same period in 2015.
Gold production from the CSH Mine decreased by 9% to 185,052 o unces from
204,471 ounces for the same period in 2015.
Copper production from the Jiama Mine increased by 6% to 18,32 1 tonnes
(approximately 40.4 million pounds) from 17,284 tonnes (approxi mately 38.1 million
pounds) for the same period in 2015.
The cash production cost, and total production cost for the CS H Mine are presented
in the table below. The cash production cost, and total product ion cost of gold per
ounce both increased in 2016 compar ed with the same period in 2 015. The major
cause of the increase was higher waste rock removal costs.
CSH Mine Year ended December 31,
2016 2015
Total production cost (US$) of gold per ounce 1,054 884
Cash production cost* (US$) of gold per ounce 764 652
* Non-IFRS measure
China Gold International
Resources Corp. Ltd.
______
Tel: 604-609-0598 Fax: 604-688-0598 E-mail: [email protected], www.chinagoldintl.com
2Suite 660, One Bentall Centre
505 Burrard Street
Vancouver, BC
Canada V7X 1M4
The cash production cost, and total production cost for the Ji ama Mine are
presented in the table below. Both cash production cost and tot al production cost
per pound of copper decreased due to the higher grade of ore mined and processed
during the year.
* Production costs include expenditures incurred at the mine si tes for the activities related to production including mining,
processing, mine site G&A and royalties etc.
** Non-IFRS measure
*** By-products credit refers to the sales of gold and silver during the corresponding period.
LIQUIDITY AND CAPITAL RESOURCES
At December 31, 2016, The Company had an accumulated surplus o f US$172
million, working deficit of US$33 9 million and borrowings of US $1,155 million. The
Company’s cash balance at December 31, 2016 was US$60 million.
The Company’s borrowings are comprised of US$596 million of sh ort term debt
facilities and US$559 million of long term debt facilities, wit h interest rates ranging
from 2.35% to 4.35% per annum, arranged through various banks i n China. The
Company had approximately US $496 million unutilized bank facili ties available at
December 31, 2016.
Mr. Bing Liu, CEO of the Company, commented, "I am very pleased that the Company has
made steady and measurable progre ss in the last year. The prod uction commissioning of
Jiama’s Phase II Series I laid a solid foundation for the Jiama expansion plan which will
reach its design capacity in the middle of 2017. The Company’s operations continued to
expand and efforts from the ent ire team contributed to the succ essful achievements of
construction and operational goals.
I strongly believe that with the re-optimization of Jiama’s min e plan and the continuing
support from the local community and China National Gold Group, the Jiama Phase II
expansion will reach its full capacity efficiently and economic ally. We will also continue to
improve the operation at the CSH mine and create more value for our shareholders and
local community by thriving to deliver stronger results in 2017 . In an effort to consistently
grow, the Company will continue to review possible acquisition targets both inside China
and globally.”
Jiama Mine Year ended December 31,
2016 2015
Total production cost* (US$) of copper per pound 2.49 2.84
Total production cost* (US$) of copper per pound
after by-products credits*** 1.48 1.99
Cash production cost** (US$) per pound of copper 2.09 2.39
Cash production cost** (US$) of copper per pound
after by-products credits*** 1.09 1.54
China Gold International
Resources Corp. Ltd.
______
Tel: 604-609-0598 Fax: 604-688-0598 E-mail: [email protected], www.chinagoldintl.com
3Suite 660, One Bentall Centre
505 Burrard Street
Vancouver, BC
Canada V7X 1M4
2017 PRODUCTION AND OPERATING OUTLOOK:
The Company will continue to l everage the technical and operat ing experience of
the Company’s controlling sharehol der, China National Gold Grou p Corporation
(“CNG”), to improve operations at its mines, increase production and minimize costs.
To fulfill its growth strategy, the Company is continually working with CNG and other
interested parties to identify po tential international mining o pportunities, mainly
outside of China, which can be readily and quickly brought into production with the
possibility of further expansion through continued exploration.
The 2017 copper production for the Company is expected to be a pproximately 79
million pounds.
The 2017 gold production for the CSH Mine is expected to be ap proximately
193,000 ounces.
The Company’s consolidated gold production from both mines wil l be 218,700
ounces.
ANNUAL RESULTS INVESTOR AND MEDIA PRESENTATION
Management will hold its 2016 Annual Results Investor and Media Presentation in Hong
Kong on April 6, 2017 at 10 a.m. (Hong Kong time). Year-End 201 6 results and
performance will be discussed with a question and answer period.
For a detailed look at the financial statements and MD&A for the year ended December 31,
2016, please visit the Company's website at www.chinagoldintl.c om, The Stock Exchange
of Hong Kong Limited’s website at www.hkex.com.hk or SEDAR at www.sedar.com.
About China Gold International Resources
China Gold International Resourc es Corp. Ltd. is based in Vanco uver, BC, Canada and
operates two growing mines, the CSH Gold Mine in Inner Mongolia , and the Jiama
Copper-Polymetallic Mine in Tibet Autonomous Region of the Peop le’s Republic of China.
The Company’s objective is to continue to build shareholder val ue by growing production
at its current mining operations , expanding its resource base, and aggressively acquiring
and developing new projects internationally. The Company is lis ted on the Toronto Stock
Exchange (TSX: CGG) and the Main Board of The Stock Exchange of Hong Kong Limited
(HKEx: 2099).
China Gold International
Resources Corp. Ltd.
______
Tel: 604-609-0598 Fax: 604-688-0598 E-mail: [email protected], www.chinagoldintl.com
4Suite 660, One Bentall Centre
505 Burrard Street
Vancouver, BC
Canada V7X 1M4
For additional information:
Elena M. Kazimirova
Investor Relations Manager and Financial Analyst
Tel: +1.604.609.0598
Email: [email protected]
Website: www.chinagoldintl.com
Cautionary Note About Forward-Looking Statements
Certain information regarding China Gold In ternational Resources contained herein may
constitute forward-looking statements withi n 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 Internati onal Resources believes that t he expectations reflected in
such forward-looking statements are reasonabl e, it can give no assurance that such
expectations will prove to have been correct. Chin a Gold International Resources cautions
that actual performance will be affected by a nu mber of factors, most of which are beyond
its control, and that future ev ents and results may vary substant ially from what China Gold
International Resources currently foresees. Factors that could cause actual results to differ
materially from those in forward-looking stat ements include market prices, exploitation and
exploration results, continued availability of capital and financing and general economic,
market or business conditions. The forward-l ooking statements are ex pressly 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.