SHANGHAI, Aug. 26 (SMM) – Jianxin Mining Co. reported a 26.68% year-on-year fall in profits to 94.11 million yuan ($ 15.26 million) during the first six months of the year, it said in its semiannual financial report.

 

The company attributed the drop in profits to falling sales volumes and rising operational costs. Its business revenues, however, rose 14.84% from a year ago to 355.33 million yuan in H1, it added. 

 

Income from its zinc concentrate business rose 1.11% year-on-year, but operational costs grew 13.84% year-on-year, cutting its gross margin by 6.72%. Income from its lead concentrate business rose 8.57% on the year, but operational costs increased 8.74% on the year, leading to a 7.32% drop in gross margin. 

 

The company extracted 411,500 tonnes of lead and zinc ore in H1, 47.85% of its production target for the year. 

 

The company’s lead and zinc concentrate output was affected by 45-day production interruption at its subsidiary Jinpeng Mining Co. following an accident at its Zhongjiashan lead & zinc mine on May 28.  

 

But Dongshenmiao Mining Co., another subsidiary, is scheduled to put a 1 million-tpy mining and dressing project into operation at the end of the year. Excluding the unforeseen, this means that Jianxin Mining Co. should still complete its production target for the year.