Zhaojin Mining Industry Company (1818) Q2 2024 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2024 rose 34.24% year-over-year to RMB4,627.2 million, driven by higher gold prices and increased sales volume.

• Net profit surged 98.82% year-over-year to RMB726.4 million, with profit attributable to owners up 118.62% to RMB552.8 million.

• Gold production increased 11.98% to 13,178.35 kg, with mine-produced gold up 6.86% and smelting/tolling output up 24.83%; copper output rose 54.15%.

• Basic and diluted EPS rose 200% to RMB0.12.

• The company completed the acquisition of Tietto Minerals, expanding its presence in West Africa.

Financial highlights

• Gross profit increased 47.03% to RMB1,976.6 million, with gross margin rising to 42.72% from 39.00% year-over-year.

• Cost of sales increased 26.07% to RMB2,650.6 million, reflecting higher gold sales.

• Other income and gains were RMB383.8 million, up 29.56% due to higher fair value gains on financial assets.

• Finance costs decreased 15.11% to RMB264.2 million, aided by a lower average financing rate.

• Integrated cost of gold per gram decreased 2.18% to RMB209.99.

Outlook and guidance

• Focus for H2 2024 includes increasing production and reserves, enhancing quality and efficiency, and accelerating project construction.

• Plans to strengthen management of newly acquired mines, expand capacity at key mines, and pursue further M&A domestically and overseas.

• Continued emphasis on ESG, safety, compliance, and community engagement.

• Continued investment in exploration, M&A, and ESG initiatives to strengthen resource base and operational quality.