SMM9: affected by the epidemic, the global economy suffered a severe recession in the first half of the year. In response to the pressure of economic slowdown, central banks and governments of major economies around the world have launched large-scale monetary and fiscal stimulus measures. On the one hand, it invests a lot of liquidity into financial markets; on the other hand, it implements large-scale financial assistance to residents and enterprises. Ultra-loose policies and safe-haven demand have pushed gold prices higher since the beginning of 2020. International gold prices opened at US $1517.18 / oz at the beginning of the year and closed at US $1780.72 / oz at the end of June. The average price in the first half of the year was US $1645.42 / oz, up 25.94% from the same period last year. The average price on the Shanghai Gold Exchange was 369.09 yuan / g, an increase of 28.28% over the same period last year. The epidemic is like a double-edged sword. The performance of listed companies in precious metals varies. Some companies have achieved excellent performance due to the rise in gold prices. For example, the net profit margin of Western Gold is as high as 5025%, but there are also companies that lose money because of rising raw materials and cash flow difficulties. The detailed report is as follows:
Chenzhou Jingui Silver Co., Ltd. (* ST Jingui)
Chenzhou Jingui Silver Co., Ltd. released its first-half results report, which said that the net loss attributed to shareholders of listed companies in the first half of 2020 expanded to about 1.311 billion yuan, while the net loss in the same period last year was about 37.96 million yuan, down 3,354.32 percent from the same period last year. Operating income was about 606 million yuan, down 85.74 percent from the same period last year, and basic earnings per share was 1.37 yuan.
The semi-annual report shows that during the reporting period, due to the tight liquidity of the company, the epidemic situation of COVID-19, lead and silver market price fluctuations and many factors, the company's production load was insufficient, and the output of major products and sales revenue decreased significantly. In the first half of 2020, Jingui Silver produced 62.37 tons of electricity and silver, down 91.76 percent from the same period last year.
Zhongrun resources
In the first half of 2020, the company realized operating income of 193592559.15 yuan, an increase of 21.07% over the same period last year, operating profit of-51756048.56 yuan and total profit of-52383495.06 yuan. The net profit belonging to shareholders of listed companies was-36033871.32 yuan, down 975.71% from the same period last year. Compared with the same period last year, the loss is larger.
Zhongrun Resources said that the expansion of the loss was mainly caused by the following factors: 1. Affected by the epidemic situation of novel coronavirus, the profits of the main business decreased during the reporting period; 2. During the reporting period, the provision for bad debts increased significantly compared with the same period last year; 3. The financial expenses caused by interest-bearing liabilities are larger.
In terms of mineral business, the Watukora Gold Mine mined 144300 tons of underground ore in the first half of 2020, processed 263900 tons of ore and high-grade tailings, and produced and sold 16500 ounces of gold. Affected by novel coronavirus's epidemic situation, coupled with the shortage of funds, the mining volume, selected ore volume, gold output and other indicators of underground ore in the mine have decreased compared with the same period last year.
China Gold Gold
By the end of the reporting period, the company's total assets were 46.466 billion yuan, an increase of 3.49% over the beginning of the period; net assets belonging to shareholders of listed companies were 20.282 billion yuan, an increase of 27.65% over the beginning of the period; sales income was 18.974 billion yuan, an increase of 0.99% over the same period last year; net profit belonging to shareholders of listed companies was 516 million yuan, an increase of 6.22% over the same period last year
Production and operation are generally stable. During the reporting period, the output of the company's main products remained stable, producing 10.60 tons of mineral gold, 18.49 tons of smelting gold and 32.28 tons of refined gold, which changed by-5.19%, 3.30% and-2.48% respectively compared with the same period last year; produced 41061.03 tons of mine copper and 156954.46 tons of electrolytic copper, an increase of 337.75% and 9.01% respectively over the same period last year. Capital operation has achieved key phased results. During the reporting period, the company issued shares to strategic investors to buy its stake in the Zhongyuan smelter, while issuing shares to China Gold and paying cash to buy a 90% stake in Inner Mongolia Mining. It has further consolidated the business strength of gold and copper mining and smelting plates.
Shandong gold
In the first half of 2020, the company realized operating income of 33.051 billion yuan, an increase of 1.119 billion yuan, or 3.50% over the same period last year; the total profit realized was 1.69 billion yuan, an increase of 783 million yuan, or 86.33%; and the net profit belonging to shareholders of listed companies was 1.153 billion yuan, an increase of 571 million yuan, or 98.22%.
Target international first-class enterprises, comprehensively implement the evaluation system of high-quality development indicators for the operation of mining enterprises, increase the comparison of key indicators, and continuously improve technical indicators and production efficiency by optimizing mining and filling processes, reducing ore dilution, strengthening management and control of key links, and so on. We will continue to promote the normalization of reducing costs and increasing efficiency, deeply dissect production and operation data, further optimize the comprehensive ranking and assessment system, and effectively stimulate the enthusiasm of enterprise cost management and control. We will further improve the audit supervision system and strive to guard against operational risks. Speed up the processing of mining warrants to lay a solid foundation for production succession.
Western gold
In the first half of 2020, the company achieved an operating income of 2481844645.56 yuan, an increase of 83.05% over the same period last year, and a net profit of 7034172.10 yuan belonging to shareholders of listed companies, an increase of 5025.16% over the same period last year. The report points out that the increase in operating income in the current period is mainly due to the increase in sales of standard gold produced by the company from the same period last year, and the increase in sales prices over the same period last year, resulting in an increase in operating income over the same period last year.
The increase in net profit belonging to shareholders of listed companies and net profit after deducting non-recurring profits and losses belonging to shareholders of listed companies over the previous year is mainly due to the increase in the sales price of standard gold for major products over the same period last year, resulting in an increase in net profit.
Garden City Gold
Yuancheng Gold released its semi-annual report for 2020. In the first half of 2020, the company realized operating income of 7222785.78 yuan, an increase of 133.89% over the same period last year. It realized a net profit of-487247.08 yuan belonging to shareholders of listed companies, turning from profit to loss over the same period last year. During the reporting period, the company was mainly engaged in managed gold business, and the company engaged in part of the trade business in the first half of 2020. Gold mine trusteeship business: the company is mainly the trusteeship work of Benxi Xiaotaoyu Mining Industry, the company has set up a trustee group, which is mainly responsible for the production, operation and management of the mining area, which is responsible for organizing and implementing the annual operation plan and investment plan of the mining area. draw up the financial budget and final account plan of the mining area, the setting plan of the management organization, and so on.
Hunan gold
During the reporting period, the company achieved sales revenue of 7.5410568 billion yuan, a decrease of 9.96% over the same period last year, a total profit of 109.4763 million yuan, an increase of 12.42% over the same period last year, a net profit of 91.7751 million yuan belonging to the shareholders of the parent company, an increase of 9.20% over the same period last year, and earnings per share of 0.08 yuan. The company strengthens cost control. Through actively carrying out the special action of "two funds" pressure drop, increasing the collection of receivables, strengthening material management, reducing the occupation of inventory funds, continuously and deeply promoting the "whole process refinement" cost control, strictly controlling four items of expenses, strengthening fund management, optimizing fund dispatching, controlling and reducing financial expenses; Fully mobilize the enthusiasm of professional study groups, engineering and technical personnel and operators, improve economic and technical indicators, and maximize benefits.
Zijin Mining Industry
During the reporting period, Zijin Mining achieved sales revenue of 83.142 billion yuan, an increase of 23.73% over the same period last year (same period last year: 67.198 billion yuan). The actual net profit belonging to the shareholders of the parent company was 2.421 billion yuan, an increase of 30.64% over the same period last year (1.853 billion yuan in the same period last year). As of the end of June 2020, the total assets of the Group were 149.805 billion yuan, an increase of 20.98% over the beginning of the year (123.831 billion yuan at the beginning of the year). The net assets were 59.465 billion yuan, of which the net assets belonging to the shareholders of the parent company were 50.31 billion yuan, down 1.71% from the beginning of the year (51.186 billion yuan at the beginning of the year).
Zijin Mining strives to cope with the risks brought by the decline in metal prices in the first quarter, strengthen production organization, and seize the favorable opportunity of the rebound in copper prices in the second quarter to increase sales and achieve good economic benefits. Due to the increase in the sales volume of mineral products compared with the same period last year, the gross profit increased by 897 million yuan, accounting for 62% of the gross profit growth of mining products; due to the increase in the sales price of mineral products over the same period last year, the gross profit increased by 252 million yuan, accounting for 18% of the gross profit growth of mining products. While increasing production, the company pays close attention to cost control, resulting in an increase of 294 million yuan in gross profit due to the decline in the cost of mineral products, accounting for 20% of the gross profit growth of mining products.
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