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With Gross Profit Increased More than Doubled
Gold Reserves and Resources is Expected to Exceed 220 Tonnes
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HONG KONG, Aug 27, 2012 - (ACN Newswire) - The Board of Directors (the "Board") of China Precious Metal Resources Holdings Co., Ltd. ("CPM" or the "Company") is pleased to announce the audited consolidated results of the Company and its subsidiaries (together the "Group") for the half year ended 30 June 2012 ("During the Period Under Review").
Results Highlight
For the half year ended 30 June 2012
-- Turnover was approximately HK$646,156,000, representing an increase of HK$345,821,000 over the corresponding period of previous year;
-- Gross profit was approximately HK$429,544,000, representing an increase of HK$234,717,000 over the corresponding period of previous year;
-- Earnings per share was HK4.47 cents.
-- Gold sales the year amounted to 51,037 ounces, representing an increase of 24,205 ounces over the corresponding period of previous year;
As of 30 June 2012, the Group's turnover was approximately HK$646,156,000, representing an increase of HK$345,821,000 over the corresponding period of previous year. Gross profit was approximately HK$429,544,000, representing an increase of HK$234,717,000 over the corresponding of previous year. During the Period Under Review, the Group generated an earnings before interest, tax, depreciation and amortisation ("EBITDA") of approximately HK$450,263,000 from its gold mining operations, which surged significantly by about 99% as compared with the same period last year. Earnings per share amounted to HK4.47 cents.
The Group signed a sale and purchase agreement on 6 July 2012 to acquire the Hengyi gold mine in Yunnan Province, for a consideration of RMB1, 988,000,000 and the acquiring is currently in the final stages. The Hengyi gold mine includes Bianfushan and Shangzhai, which is located in Heping Town, Zhenyuan County, Pu'er City, Yunnan Province, the PRC. Bianfushan covers an area of around 2 km, with total JORC compliance gold resource of 412,000 ounces (12.8 tonnes) and average grade of 2.1g/t grade. Shangzhai, located approximately 15 kilometers northwest of Bianfushan, has a mining area of around 7 km and total JORC compliance gold resource of 1,280,000 ounces (39.8 tonnes) with average grade of 3.0g/t. In addition to the mining licenses, the project includes four licensed exploration areas in close vicinity with a total area of around 42 km. Due to the multiple stacked vein style of mineralisation, the exploration potential is excellent with high probability to increase the currently defined resources with additional drilling and/or trenching. On completion of the acquisition, the Group's gold resources and reserves will increase to more than 220 tonnes. This expansion will further improve the cost and operational efficiency of the Group.
Looking forward, Mr. Lam Cham, the Chairman of the Group, said, "Gold demand in China expanded to record levels in the first quarter of 2012, with total consumer demand surging 10% to reach a new quarterly high of 255.2 tonnes. Moreover, investment demand in the European markets remained strong, within the higher range established since the onset of the global economic crisis, with consumers sustaining the demand for gold bars and coins. Finally, central banks continued to buy gold; net purchases in first quarter amounted to 80.8 tonnes, which is 7% of global gold demand. Diversification requirements and growth in the foreign exchange reserves of a number of countries point towards a continuation of this trend. The upward trend of gold prices and the strong market demand is set to drive the profitability of the Group in the next few years. the Group started focusing on the development of the gold mining business in 2009, we have become one of the largest gold producers in China. Our proven track record, along with evidences of explosive growth and quality operations, has demonstrated that the Group is on its way to achieving another successful year."
Topic: Press release summary
Source: China Precious Metal
Sectors: Metals & Mining, Daily Finance, Daily News
https://www.acnnewswire.com
From the Asia Corporate News Network
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