On March 20th 2015, Zijin Mining Group Co.,Ltd("Zijin" or "the Company") published its 2014 annual results. In 2014, at the back drop of continuous price downturn in gold and base metals, Zijin realized a double-digit growth in net profit of 2.346 billion Yuan (equivalent to USD 381.79 million), an increase of 10.34% when compared with the same period of last year; the sales revenue reached 58.76 billion Yuan (equivalent to USD 9.56 billion), an increase of 18.6%; the total assets amounted to 75.126 billion Yuan(equivalent to USD 12.23 billion), an increase of 12.3%.
In 2014, the situation in mining market was worse ; mining enterprises around the world underwent great pressures with continuous large drop in prices of mineral products, the average prices of gold and copper dropped by 10.04% and 7.9% respectively. Zijin mining ranked the top two among world gold enterprises, behind Newmont Gold with net profit of 3.129 billion Yuan(equivalent to USD 509.21million).
How can Zijin make such great performance? Firstly, active innovation and strong reform in management and assessment have effectively stimulated the vitality of Zijin, thus the production and sales have been improved, losses of smelting enterprises has been reduced, costs have been controlled, enterprise transformation has been realized and upgraded.
In 2014, Zijin achieved substantial increase in the annual production of all mineral products, and overfilled the production plan of main mineral products. In terms of cost control, the selling costs per unit in mined-gold, smelted copper, mined-zinc, mine-silver and iron ore concentrate have been reduced. The Company ' s financing cost has maintained at a comparatively lower level of around 4.8%. Since October 2014, nine of ten smelters owned by Zijin started to turn profit, losses have been reduced by 570 million Yuan (equivalent to USD 92.76 million). The substantial reduction in losses of smelting enterprises has made great contribution in company' s growth.
Secondly, the outstanding achievement in 2014 also benefits from Zijin ' s innovation in management and technologies. The continuous improvement in management of overseas projects, new breakthroughs in increase of mineral resources and started production of a batch of new projects has brought out prosperous and sustainable development to Zijin.
In 2014, Norton Goldfield,the Company's overseas project, made a record high in production for two consecutive years. The cash cost have been reduced from AUD 960/ounce in 2013 to AUD 888/ounce in 2014. The annual gold output in Zeravshan Joint-Venture Gold Mines has increased by 31.35% when compared with that in 2013, this project has become the key gold enterprise and important financial support in Tajikistan.
A batch of key projects at home and abroad have been successfully completed and put into operation, such as Wulagen Lead and Zinc Mine in Xinjiang, Tuva Multi-Metals Mine in Russia, Taldybulak Levoberezhny Gold Mine in Krygyzstan and Zinc Polymetallic Mine in Inner Mongolia. In addition, Zijin attached great important importance to overseas investment, successfully acquired part shares of La Compagnie Mini è rede Musonoie Global SAS, Pretium Resources Inc.Nkwe Platinum Limited, Henan Luoyang Kunyu Mining Co.,Ltd and Makeng Iron ore Mine in Longyan, Fujian Province. All of these will become new capacity and growth points of Zijin's future development.
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