Zijin Mining released its annual report that its operating income in 2020 was 171.5 billion yuan, an increase of 26.01% over the same period last year. The total profit was 10.8 billion yuan, an increase of 55.51% over the same period last year. Net profit was 8.45 billion, an increase of 67.13% over the same period last year.
Affected by the epidemic in 2020, the global economy is in the doldrums. A series of events have led to a significant increase in global instability, rising metal prices, and the coexistence of opportunities and challenges in the global mining industry. In this form, Zijin Mining strengthens its own management, improves its operation mode, actively seizes the opportunity, and achieves a record high performance. Zijin Mining has made historical achievements mainly due to its adherence to innovation as its core competitiveness, its original management model of "integration of the five rings of ore flow", the increase in the production of existing mines and the acquisition of other mines resulting in an increase in total production, as well as the rise in the price of the company's major metals, and so on.
Affected by the loose monetary policy of central banks, the dollar index is weak and the price of gold fluctuates but remains high. In 2020, the international gold price hit a record high of US $2075.14 per ounce. The average price for the year was $1769.64 an ounce, up 26.77% from a year earlier. The average price on the Shanghai Gold Exchange was 88.13 yuan per gram, an increase of 25.73 percent over the same period last year.
Lun copper's annual average price was $6199 a tonne, up 3.23% from a year earlier. The average domestic spot price of copper was 48752 yuan per ton, up 2.1 per cent from the same period last year. Zinc prices have fallen, with the annual average price of lun zinc at $2279.91 a tonne, down 10.52 per cent from a year earlier. The average spot price of zinc in China was 18496 yuan per ton, down 9.7% from the same period last year. In 2020, Zijin Mining became the largest producer of copper and zinc in China, with a gross profit of 46% for copper and 32% for zinc. Zijin Mining is also one of the largest producers of mineral gold in China, with a gross profit margin of 51%. The rise in related metal prices has also led to an increase in Zijin's profits.
The company's major projects have achieved fruitful results. The gold production capacity has increased, the Wuritika Gold Mine in Colombia has been completed and put into production, the production of the Aurora Gold Mine in Guyana has resumed, and the technical renovation and expansion project of 10000 tons / day of Longnan Zijin has been put into operation. Guizhou Zijin, Shanxi Zijin, Australia Norton Jintian and a number of gold incremental projects have started in an all-round way. The explosive growth of copper production is beginning to show, the construction of the Kakoula Copper Mine in the Democratic Republic of the Congo (DRC) has advanced beyond expectations, the construction of the upper belt of the Paiji Copper and Gold Mine in Serbia has made gratifying progress, and good benefits have been produced after the technical transformation of the NC Mine of Zijin Copper in Serbia, and the Julong Copper Industry in Tibet has been "reborn" and all projects under construction have been resumed.
Other business sectors are booming, the Congo (DRC) Karilu lime project and Xinjiang Zijin non-ferrous zinc smelting project have been completed and put into production, and the technical transformation of the third phase of Zijin Zinc Concentrator has reached the production standard. The company's overseas output of mineral gold, copper and zinc reached 58%, 44% and 50% of the company's total, respectively, and the amount of resources accounted for 72%, 75% and 26% of the company's total, respectively. Toronto time on August 25, 2020 to achieve the delivery of 100% stake in Guyana Jintian Aurora Gold Mine, Guyana Jintian Aurora Gold Mine is in production, the main orebody mineralization is concentrated and continuous, good mining conditions, simple separation and metallurgical process, can quickly increase the company's gold production, the expected return on investment is quick. And completed the 50.1% equity acquisition of Julong Copper on July 9, 2020. Julong Copper owner's business is copper exploration and development, with Qulong copper polymetallic mine, Rongmu Cuola copper polymetallic mine and Zhibula copper polymetallic mine.
A series of actions have increased the production of Zijin Mine. During the reporting period, Zijin Mining Group produced 315084 kilograms of gold, up 4.58 percent from the same period last year; 1029090 tons of copper, up 18.12 percent from the same period last year; and 560964 tons of zinc, down 6.91 percent from the same period last year. In other businesses, silver production increased by 38.61% year-on-year, iron concentrate increased by 9.63%, and cobalt increased by 101.00%. The sales revenue of these products accounted for 15.8% of the operating income during the reporting period.
