China Gold International Reports Year-End 2018 Results and Provides 2019 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 2018 Results and Provides 2019 Outlook
VANCOUVER, March 26, 2019 - China Gold International Resources Corp. Ltd. (TSX: CGG; HKEx:
2099) (the “ Company” or “China Gold International Resources ”) is pleased to report Year-End
2018 results and provide 2019 Outlook.
FINANCIAL, PRODUCTION AND OPERATION HIGHLIGHTS
2018 Fourth quarter highlights
• Revenue increased by 22% to US$163.0 million from US$133.3 million for the same
period in 2017.
• Mine operating earnings decrease d by 27% to US$33.3 million from US$45.7 million for
the same period in 2017.
• Net loss after income taxes of US$2.0 million decreased from a net profit of US$20.0
million for the same period in 2017.
• Gold production from the CSH Mine decreased by 31% to 41 ,506 ounces from 59,998
ounces for the same period in 2017.
• Copper production from the Jiama Mine increased by 19% to 17,711 tonnes
(approximately 39.0 million pounds) from 14,905 tonnes (approximately 32.9 million
pounds) for the same period in 2017. Gold produced was 22,150 ounces compared to
17,893 ounces for the same period in 2017. The increase in production was primarily
due to the output from the commercial production of the Phase II expansion.
2018 Annual highlights
• Revenue increased by 39% to US $570.6 million from US$411.9 million for the same
period in 2017.
• Mine operating earnings decreased by 5% to US$110.7 million from US$116.8 million for
the same period in 2017.
• Net loss after income taxes of US$4.2 million decreased from a net profit of US$64.3
million for the same period in 2017.
• Gold production from the CSH Mine decreased by 22% to 144,896 ounces from 186,957
ounces for the same 2017 period.
• Copper production from the Jiama Mine increased by 54% to 55,025 tonnes
(approximately 121.3 million pounds) from 35,844 tonnes (approximately 79.0 million
pounds) for the same period in 2017. Gold produced was 70,262 ounces compared to
47,710 ounces for the same period in 2017. The increase in production was mainly due
to the output from the commercial production of the Phase II expansion.
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
-2-
• The cash production cost, and total production cost for the CSH Mine are presented in
the table below.
• The cash production cost, and total production cost for the Jiama Mine are presented in
the table below.
* 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.
** 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, 2018, the Company had an accumulated surplus of US$229.8 million,
working capital of US$39.3 million and borrowings of US$1,210 million. The Co mpany’s
cash balance at December 31, 2018 was US$138.0 million.
• The Company’s borrowings are comprised of US$505.7 million of 3.25% unsecured
bonds maturing on July 6, 2020, of which US$16.1 million is included in the current
portion of borrowings, and US$ 107.8 million of short term debt facilities with interest
rates ranging from 2.75% to 4.35% per annum arranged through various banks in China.
In addition, on November 3, 2015, the Company entered into a Loan Facility agreement
with a syndicate of banks, led by Bank of China. The lenders agreed to lend an aggregate
principle amount of RMB 3.98 billion, approximately US$613 million with the interest
rate of 2.83% per annum currently. The People's Bank of China Lhasa Center Branch’s
interest rate serves as a benchmark for the interest on the drawdowns. The bank’s
interest rate is then discounted by 7 basis points (or 0.07%) to calculate the interest on
the drawdowns.
2019 PRODUCTION AND OPERATING OUTLOOK:
• Projected gold production of 210,000 ounces in 2019.
• Projected copper production of approximately 132 million pounds in 2019.
CSH Mine Year ended December 31,
2018 2017
Total production cost (US$) of gold per ounce 1,164 1,055
Cash production cost* (US$) of gold per ounce 750 670
* Non-IFRS measure
Jiama Mine Year ended December 31,
2018 2017
Total production cost* (US$) of copper per pound 2.97 2.47
Total production cost* (US$) of copper per pound
after by-products credits*** 2.08 1.36
Cash production cost** (US$) per pound of copper 2.25 2.05
Cash production cost** (US$) of copper per pound
After by-products credits*** 1.36 0.94
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-
• 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 Phase II,
Series I ex pansion reached commercial production on December 31, 2017, followed by
commercial production of Phase II, Series II effective July 1, 2018, bringing the entire
Phase II expansion project into commercial production. The Company was able to
accelerate its d evelopment and commissioning to achieve commercial production for
Series II ahead of schedule. The Company continues to ramp up operations at Series II
to full design capacity of 22,000 tonnes per day (“tpd”). The full design capacity of ore
processing at the Jiama Mine will increase to 50,000 tpd from the previous capacity of
28,000 tpd once Series II reaches full design capacity.
• The Company will continue to leverage the technical and operating experience of the
Company’s substantial shareholder, Ch ina National Gold Group Corporation (“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 continual ly working with CNG and other
interested parties to identify potential international mining acquisition opportunities,
namely projects outside of China.
ANNUAL RESULTS INVESTOR AND MEDIA PRESENTATION
Management will hold its 201 8 Annual Results Investor a nd Media Presentation in Hong Kong
on March 28, 2019 at 10 a.m. (Hong Kong time). Year-End 2018 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 Decem ber 31,
2018, please 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.com.
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 de veloping 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
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
-4-
Certain information regarding China Gold International Resourc es 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 correc t. 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 cur rently
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.