China Gold International Reports 2018 First Quarter Results
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 2018 First Quarter Results
VANCOUVER, May 15, 2018 ‐ China Gold International Resources Corp. Ltd. (TSX: CGG; HKEx:
2099) (the “Company” or “China Gold International Resources”) is pleased to report financial
and operational results for the three months ended March 31, 2018 (“Q1”, “first quarter” or
“first quarter of 2018”).
2018 First Quarter Highlights
Revenue increased by 30% to US$106.7 million from US$82.1 million for the same
period in 2017.
Mine operating earnings decreased by 66% to US$6.6 million from US$19.1 million for
the same period in 2017.
Net profit after income taxes decreased to US$2.0 million from US$6.4 million for the
same period in 2017.
Gold production from the CSH Mine increased by 4% to 36,042 ounces from 34,540
ounces for the same period in 2017.
The total production cost of gold for the three months ended March 31, 2018 decreased
to US$1,028 per ounce compared to US$1,127 for the three month 2017 period. The
cash production cost of gold for the three months ended March 31, 2018 decreased by
approximately 22% to US$578, from US$741 per ounce for the same period in 2017,
mainly due to 29% higher gold grade.
CSH Mine Three months ended March 31,
2018 2017
Total production cost(1) (US$ per ounce) 1,028 1,127
Cash production cost(1)(US$ per ounce) 578 741
(1) Non‐IFRS measure.
In the first quarter of 2018, both the cash production cost and total production cost of
the Jiama Mine increased, mainly due to the use of open‐pit ore in Phase II, Series I, and
the relatively low ore grade of the open‐pit mine. In addition, the Company used the
colder winter months to perform equipment maintenance work, resulting in lower
equipment utilization rates. Now that the winter months have passed and production
has been restored upon completion of equipment maintenance, the Jiama Phase II,
Series I production capacity will gradually increase and reach the designed capacity.
Therefore, it is expected that production will increase in the second quarter, while cash
production cost and total production cost will decrease.
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
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Jiama Mine Three months ended March 31,
2018 2017
Total production cost(1) (US$) of copper
per pound after by‐products credits(2) 3.78 1.15
Cash production cost(3) (US$) of copper
per pound after by‐products credits(2) 2.46 0.80
(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.
Copper production from the Jiama Mine decreased by 7% to 7,061 tonnes
(approximately 15.6 million pounds) from 7,582 tonnes (approximately 16.7 million
pounds) for the same period in 2017. Gold produced was 10,222 ounces compared to
8,160 ounces for the same period in 2017.
Mr. Bing Liu, CEO of the Company, commented, “Overall we are pleased with the performance
of the Company in Q1 2018 given the significant year over year increase in revenue. Given the
harsh winter conditions we experience at both our mines Q1 is often a challenging quarter from
an operations perspective. However, the Company took advantage of this period to complete
maintenance work that should realize benefits later in the year, and we continue to make solid
progress in managing costs which is also anticipated to realize future benefits.”
Outlook
Projected gold production of 160,000 ounces in 2018.
Projected copper production of approximately 100 million pounds in 2018.
The Jiama Mine’s Phase II expansion consists of two series, with each series having a
mining and mineral processing capacity of 22,000 tonnes per day (“tpd”). The Jiama
Mine’s Phase II, Series I expansion reached commercial production on December 31,
2017. As a result, throughput capacity has been increased to 28,000 tpd from the
previous capacity of 6,000 tpd. Construction of the Jiama Mine’s Phase II, Series II is now
complete and development and production testing is currently underway. The
Company expects Series II, which will add an additional 22,000 tpd, to achieve
commercial production in mid‐2019.
The Company will continue to leverage the technical and operating experience of the
Company’s substantial shareholder, China National Gold Group Co. Ltd. (“CNG”), to
improve operations at its mines. In addition, the Company continues to focus its efforts
on increasing production while minimizing costs at both mines.
To fulfill its growth strategy, the Company is continually working with CNG and other
interested parties to identify potential international mining acquisition opportunities,
namely projects outside of China.
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
‐3‐
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 additional 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: [email protected],
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.