China Gold International Reports 2020 Second Quarter and First Half Financial 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, Box 27
Vancouver, BC
Canada V7X 1M4
China Gold International Reports 2020 Second Quarter
and First Half Financial Results
VANCOUVER, August 14, 2020 - China Gold International Resources Corp. Ltd. (TSX: CGG; HKEx:
2099) (the “ Company” or “ China Gold International Resources ”) report s on the Company’s
financial and operational results for the three months ( “Q2”, or “second quarter 2020”) and six
months (“first half” or “six months 2020”) ended June 30, 2020. 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: Q2 2020 Compared to Q2 2019
• Revenue increased to US$209.2 million compared to US$163.2 million for the same period
in 2019.
• Mine operating earnings increased by 386% to US$35.5 million from US$7.3 milli on for the
same period in 2019.
• Net income of US$18.5 million increased by US$41.5 million from a net loss of US$23.0
million for the same period in 2019.
• Cash flow from operation decreased by 4% to US$54.5 million from US$56.6 million for the
same period in 2019.
• Total gold production increased by 14% to 63,043 ounces from 55,503 ounces for the same
period in 2019.
• Total copper production increased by 31% to 46.5 million pounds (approximately 21,103
tonnes) from 35.6 million pounds (approximately 16,126 to nnes) for the same period in
2019.
CSH Mine Three months ended June 30,
2020 2019
Total production cost (US$ per ounce) 1,358 1,329
Cash production cost(1) (US$ per ounce) 889 805
(1) Non-IFRS measure.
Gold production at the CSH Mine slightly decreased by 3% to 38,850 ounces for the three
months ended June 30, 2020 compared to 39,875 ounces for the three months ended June 30,
2019. The total production cost of gold for the three months ended June 30, 2020 increased to
US$1,358 per ounce compared to US$1,329 for the three months ended June 30, 2019. The
cash production cost of gold for the three months ended June 30, 2020 increased to US$889
per ounce from US$805 for the same period in 2019. Changes in total production cost and
cash cost are mainly due to higher stripping ratio and waste removal costs.
China Gold International
Resources Corp. Ltd.
__________________________________________________________________
Tel: 604-609-0598 Fax: 604- 688-0598 E -mail: [email protected], www.chinagoldintl.com
Suite 660, One Bentall Centre
505 Burrard Street
Vancouver, BC
Canada V7X 1M4
-3-
Jiama Mine Three months ended June 30
2020 2019
Total production cost(1) (US$) of copper
per pound after by-products credits(2) 1.00 2.39
Cash production cost(3) (US$) of copper
per pound after by-products credits(2) 0.40 1.70
(1) A discount factor of 18.6% to 29.6% is applied to the copper benchmark price to
compensate the refinery costs incurred by the buyers. The discount factor is higher if
the grade of copper in copper concentrate is below 18%. The industry standard of
copper in copper copper concentrate is between 18-20%.
(2) 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.
(3) Non-IFRS measure. See ‘Non-IFRS measures’ section of this MD&A
Both total production cost of copper per pound after by -products and cash p roduction cost of
copper per pound after by -product decreased as compared to the same period in 2019 due to
higher mined tonnes, higher head grade, higher recovery rates, and more by -products
recovered of lead and zinc.
Selected Production and Financial Highlights: First Half 2020 Compared to First Half 2019
• Revenue increased to US$357.8 million compared to US$308.8 million for the same period
in 2019.
• Mine operating earnings increased by 138% to US$53.7 million from US$22.6 million for
the same period in 2019.
• Net income of US$9.9 million increased by US$37.4 million from a net loss of US$27.5
million for the same period in 2019.
• Cash flow from operation increased by 11% to US$70.5 million from US$63.5 million for the
same period in 2019.
• Total gold produ ction increased by 1 5% to 114,872 ounces from 99,527 ounces for the
same period in 2019.
• Total copper production increased by 20% to 82.2 million pounds (approximately 37,288
tonnes) from 68.3 million pounds (approximately 30,959 tonnes) for the same perio d in
2019.
Mr. Liangyou Jiang , the Chairman and CEO of the Company, state d, “The Company turned
losses into profits in the first half of the year, with the net profit reaching its highest level since
the second half of 2018 . We achieved encouraging and outstanding results as production
continued to increase steadily, costs continued to be optimized through improved
management. Since the beginning of the year, the Company overcame the adverse impacts of
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-
the COVID-19 epidemic, actively organized production and optimized operations, with the great
efforts devoted by the management team and all the staff . T he Company’s gold and copper
production increased significantly in the first half of 2020 compared to the same period in 2019,
and the unit production costs decreased significantly; especially at Jiama mine . The total
production cost of copper per pound and the cash production cost of copper per pound
decreased by 46% and 67%, respectively. Our o perating cash flow continues to look strong.
In the second half of the year, the C ompany will continue to do a solid job on production and
operation, and work hard to keep our work cost-effective, and improve the C ompany's
profitability, aiming to create more value for our stakeholders.”
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.com to 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 registered 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 the Company, please refer to its SEDAR profile at www.sedar.com or: Telephone:
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.