Fujian-based Zijin Mining Group, the largest mainland gold miner in terms of market value, is planning to raise gold output 10 per cent. The move is to capitalise on the continuing rise in precious metals after the group announced a big jump in its profits last year.
The company's net profit surged 49.72 per cent to 2.55 billion yuan (HK$2.8 billion), largely driven by soaring gold prices.
Sales surged 39.26 per cent to 14.87 billion yuan for the year to December from 10.67 billion yuan the year before. Despite the strong results no final dividend was proposed.
Gold business contributed 59.68 per cent of total sales, and 59.47 per cent of net profit. The company said the average selling price of gold bullion rose 8.87 per cent from a year ago, to 171.14 yuan per gram, or about US$728.76 per ounce.
Early last week, the price of gold edged closer to US$1,000 an ounce in London, setting a record high as the dollar tumbled and as crude oil held near a record high.
Looking ahead, the group is aiming to produce 57.3 tonnes of gold this year, up 9.58 per cent from last year's 52.29 tonnes.
Of the total gold output, about 29.7 tonnes are produced from mines, and about 27.6 tonnes are processed gold.
