BEIJING: ZIJIN Mining Group Co, China’s biggest listed gold producer, yesterday reported a 29.4 percent fall in its 2015 net profit as a weak global economy pressured metal prices.
Zijin posted a net profit of 1.7 billion yuan (US$261 million), down from the previous year’s 2.3 billion yuan.
The mining group, which also produces other metals such as copper, lead and zinc, aims to increase its production this year as it expects demand and prices to improve for its products, it said in a statement on the Shanghai Stock Exchange.
The company expects gold production at its mines to increase by 15 percent to 42.5 tons this year and aims to raise its mine-produced copper by 3 percent to 155,000 tons, it said.
“As gold and other metals are seen as safe haven metals, we expect prices to be well supported with some room for rises this year. Base metal prices are also expected to rebound gradually,” the mining group said in the statement.
Zijin is one of many Chinese companies that have made inroads into overseas markets as part of efforts to step up presence globally.
The mining group now owns stakes in foreign assets such as Barrick Gold Corp’s Porgera mine in Papua New Guinea and Ivanhoe’s Kamoa copper project in the Democratic Republic of Congo.
The results statement came after China’s markets closed yesterday. The company’s Shanghai-listed shares rose 0.3 percent, lagging the main stock indexes.
