China Gold International reports lower sales, output

Vancouver-based China Gold International Resources Corp (TSE: CGG; HKEx: 2099) released Friday its financial and operational results for the second quarter and first half of 2014 and  revised its 2014 annual production guidance.

Selected Production and Financial Highlights: Q2 2014 Compared to Q2 2013
  • Consolidated revenues of US$48.5 million for the second quarter of 2014 decreased by US$33.1 million, from US$81.6 million for the same period in 2013.
  • Revenues from the Chang Shan Hao Gold Mine of US$28.1 million (Q2, 2013: US$46.2 million) decreased by US$ 18.1 million due to a 35% decrease in gold sales volume and significantly lower gold prices.
  • Revenue from the Jiama Copper-Gold Polymetallic Mine of US$20.4 million (Q2, 2013: US$35.4 million) decreased by US$15 million due to a 27% decrease in copper sales  due to changes in market demand.  During the three month period, the Company was stockpiling the copper concentrate until market demand improves.
  • Net income of the Company of US$8.4 million for the three months ended June 30, 2014 decreased by US$11.1 million from US$19.5 million for the three months ended June 30, 2013.
  • Gold production at the CSH Mine decreased to 24,571 ounces for the three months ended June 30, 2014, compared to 32,111 ounces for the three months ended June 30, 2013.  Despite the higher grade of ore, gold output decreased due to lower recovery rates which were a result of longer leaching time with an increased height of the leaching heap.
  • The cash and total production costs of gold per ounce for the three months ended June 30, 2014 decreased compared with the same period in 2013 due to the lower processing and waste rock removal costs during the current quarter.

CORRECTION: The original story stated that China Gold International was the "world's largest gold company". This is incorrect. China National Gold is the largest gold producer in China.