Net Profits of West Mining Slump 64.64% YoY in H1 on Slipping Lead Prices

SHANGHAI, Aug. 20 (SMM) – West Mining gained net profits of 41.63 million yuan in January-June this year, down 64.64% YoY owing to falling lead prices, SMM reported.

Average prices of lead and copper concentrate, gold and silver dropped 6 percentage points, 14 percentage points, 5 percentage points and 16 percentage points, respectively, which was behind the falls in net profits. Net profits made by lead products tumbled 8.24 percentage points to 36.43%, the largest drop among other metals, SMM learnt. 

SMM #1 lead prices quoted 12,972.9 yuan per tonne in the first half of 2015, down 6.5 percentage points from 13,873.74 yuan per tonne in the same period last year. Lead concentrate prices averaged 11,123 yuan per tonne, slipping 8.8 percentage points YoY to 12,207 yuan per tonne.

Business profits totaled 0.42 billion yuan for lead products in H1, growing 17.99 percentage points YoY. Lead concentrate output came in at 21,415 tonnes in January-June, achieving 97.44% of output target. Primary lead production totaled 2,270 tonnes, only obtaining 55.37% of output target. This was mainly because lead smelters cut production to avoid further losses.  

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