SHANGHAI, Apr. 22 (SMM) – According to the 2012 annual report of the Western Mining, business income of the company shrank 6.79% compared to 2011, with total profits of RMB -127 million, down 115% YoY. Net profits belonging to shareholders of the apparent company was RMB 43 million, down 95% YoY.
The report points out net profits dropped due mainly to the falling price and output of major products, as well as dropping TC.
According to the annual report, zinc metal output in 2012 was 72,923 mt, a completion rate of 101.04%, and the company produced 51,000 mt of zinc ingot, with a completion rate of 103.78%. Costs of major zinc business were down 30.50% YoY, and business income was RMB 2.136 billion, down 33.47% YoY, while gross profits was 8.85%, down 3.9% YoY. Western Mining plans to produce zinc metal output of 70,616 mt in 2013, with 71,300 mt of zinc ingot. The company plans to realize business income of RMB 20 billion, with business costs of RMB 18.9 billion, and total spending of RMB 1.327 billion.
SMM sources report that the growth of costs at the zinc industry was higher than that of major business income, while sales profits slid. Falling nonferrous metal prices directly affected ore profits. Selling prices of zinc concentrate and zinc ingot were down 12% YoY during the report period, while production costs rose due to increasing raw material prices, causing gross profits of the company to decrease.