China's Gold Producer Zijin's Profits Rise

BEIJING -- Zijin Mining Group Co, China's largest gold producer in terms of output, said Thursday that its net profits rose 18 percent year-on-year in 2011 due to rising gold prices.

Net incomes increased to 5.71 billion yuan ($906.35 million), or 0.26 yuan per share, from 4.83 billion yuan, or 0.22 yuan per share in 2010, according to a statement filed to the Shanghai Stock Exchange.

Revenues surged 39 percent from one year earlier to 39.76 billion yuan, slightly below the company's earlier forecast of 39.82 billion yuan.

Shareholders will be paid 0.08 yuan in dividends for every 10 shares they hold, according to the statement.

The Fujian-based company attributed the profit increase to climbing gold prices and booming demand for the metal as an investment tool and a safe haven against inflation.

Zijin's Shanghai-listed shares closed 2.38 percent lower at 4.11 yuan during Thursday's morning trading.