Shandong Gold Mining Announces 2018 Annual Results

Monday, 1 April 2019, 18:59 HKT/SGT

Recorded Revenue Reached RMB 54.79 billion
Representing a YoY Increase of 7.35%

HONG KONG, Apr 1, 2019 - (ACN Newswire) - Shandong Gold Mining Co., Ltd. (stock code: 1787.HK) is pleased to announce the audited consolidated annual results of the Company and its subsidiaries for the year ended 31 December, 2018.

During the Reporting Period, in accordance with the requirements of high quality development, the Company focused on strengthening strategic orientation and tapping into the development potentials. Also, the Company emphasized on quality and efficiency enhancement and increased the development quality, while enhancing enterprise reform and optimizing development mechanism. The Company highlighted conversion of drivers to increase development impetus, and accelerated the pace of "going global" for greater development. During the year, the Company was listed on the Main Board of the Hong Kong Stock Exchange with proceeds from the listing of HK$5.246 billion, marking the completion of the listing of A Shares and H Shares in the capital market of mainland China and Hong Kong. Meanwhile, the Company reinforced safety and environmental protection to pursue steady progress. As a result, the Company's comprehensive strength continued to grow and its industry status further improved, creating a new situation of high-quality development.

During the Reporting Period, the Company's gold mine production volume was 39.32 tonnes, increased by 3.43 tonnes, representing a year-on-year increase of 9.57%; the Company's total assets reached RMB45.61 billion, representing a year-on-year increase of 5.75%; the total liabilities at the end of the year amounted to RMB21.98 billion, representing a decrease of 14.27% as compared with RMB25.64 billion at the beginning of the period; the asset-liability ratio (calculated as the ratio of total liability over total asset) was 48.19%, down by 11.26% year-on-year; the equity attributable to the owners of the parent company totaled RMB21.71 billion, representing an increase of 31.82% as compared with RMB16.47 billion at the beginning of the period. The turnover for the year was RMB54.79 billion, representing a year-on-year increase of RMB3.75 billion or 7.35%, the increase in revenue of the Company was mainly due to the increase in the Company's self-produced gold and small gold bars; the total gross profit was RMB3.93 billion, up by RMB0.29 billion or 7.97% year-on-year. The Board proposed the payment of a final dividend of RMB1 per 10 Shares (tax inclusive) for the year ended 2018 and the issue of 4 bonus Shares for every 10 Shares to all Shareholders by way of conversion of capital reserve.

For the Company's major operations, the Company completed processing (leaching) of 27.84 million tonnes, representing a year-on-year increase of 6.31 million tonnes or 29.33%, among which, processing amount in the PRC reached 14.29 million tonnes, representing a year-on-year increase of 0.44 million tonnes or 3.15%, while processing amount abroad amounted to 13.55 million tonnes, representing a year-on-year increase of 5.88 million tonnes or 76.62%. The raw ore grade of the Company was 1.59g/t, of which the raw ore grade of domestic mines was 2.28g/t, representing a year-on-year increase of 0.05g/t, while the raw ore grade of overseas mines was 0.85g/t. The gold beneficiation recovery rate of domestic mines of the Company was 91.82%, while the gold beneficiation recovery rate of overseas mines was 73.14%.

The Company is centering on improvement of development quality and efficiency with the major efforts exerted on the structural reform at the supply side. The Company implemented major projects of conversion of new and old drivers to further speed up reform in terms of quality, efficiency and driving force, enhance output capacity and scale, and proactively cultivate differentiated competitive advantages, to take a new development path featured by high efficiency, energy saving, green and environmental protection, with a view to building a world-class gold enterprise. While accelerating the pace of overseas mergers and acquisitions and proactively developing high-quality resources, the Company strengthened tapping corporate internal potentials to ensure long-term continuation of production; the advancement of fine management improved production efficiency and enhanced cost competitiveness; more investment in scientific research and development generated higher standards of technical contributions; moreover, the Company adhered to the "double zero" goal in terms of safety and environmental protection and achieved green and ecological development. In particular, the Laizhou Gold Base should be built into a world leading gold production and smelting base through tapping the material and spiritual potentials in terms of management, technology, safety, ecology, corporate culture, etc. The Company will continue to optimize and expand, as to become one of the top ten gold mining enterprises in the world in respect of comprehensive strength.

Topic: Press release summary Sectors: Metals & Mining, Daily Finance, Daily News
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