China Gold International Resources Corp. Ltd. (2099.HK) Bundle
A Brief History of China Gold International Resources Corp. Ltd.
Founded in 2007 and headquartered in Vancouver, China Gold International Resources Corp. Ltd. is a publicly traded mining company engaged in the exploration and development of gold and other precious metal properties in China. The company is a subsidiary of China National Gold Group Corporation, which is the largest gold producer in China.
In 2009, China Gold International Resources went public on the Hong Kong Stock Exchange under the ticker symbol 2099.HK. The IPO raised approximately HKD 5.5 billion, marking a significant step for the company as it aimed to expand its operational capacity.
In 2011, the company acquired the Skyland Mining Corp and its assets, including the CSH gold mine located in Inner Mongolia. The CSH gold mine has been a centerpiece of the company’s operations, contributing significantly to its production figures.
By 2015, the company reported an annual gold production of approximately 145,000 ounces from its mining operations, which included the CSH and Jiama mines. The Jiama project, acquired in 2010, is one of China’s largest copper-gold mines, with proven and probable reserves of 4.84 million ounces of gold and 5.9 billion pounds of copper.
In the fiscal year 2021, China Gold International Resources reported total revenues of approximately USD 447.5 million, reflecting a 14.3% year-over-year increase. The gross profit for the same period was around USD 153 million, yielding a gross margin of 34.2%.
| Year | Gold Production (ounces) | Revenue (USD millions) | Gross Profit (USD millions) | Gross Margin (%) |
|---|---|---|---|---|
| 2018 | 131,000 | 381.5 | 131.2 | 34.4 |
| 2019 | 114,000 | 423.0 | 147.5 | 34.8 |
| 2020 | 142,000 | 391.5 | 134.5 | 34.4 |
| 2021 | 145,000 | 447.5 | 153.0 | 34.2 |
As of the end of 2022, the company reported total assets of approximately USD 2.4 billion, with a total equity of around USD 1.1 billion. The company’s mining operations have a significant impact on the local economy and contribute to various community development projects.
In the first half of 2023, China Gold International Resources reported a total revenue of approximately USD 220 million, with gold sales constituting the major revenue driver. The company continued to focus on cost control measures, reporting an all-in sustaining cost (AISC) of approximately USD 1,050 per ounce of gold produced.
The company remains committed to sustainability and has outlined a strategy to reduce its environmental footprint while increasing operational efficiency. It has invested in technologies aimed at improving recovery rates and reducing waste generation in its mining processes.
A Who Owns China Gold International Resources Corp. Ltd.
China Gold International Resources Corp. Ltd. (CGG) operates as a gold and copper mining company and is listed on the Toronto Stock Exchange under the symbol CGG. The company's largest shareholder is China National Gold Group Corporation (CNG), which holds a significant interest in CGG.
As of the latest available data, CNG owns approximately 39.3% of the shares of China Gold International Resources. Other investors include various institutional and retail shareholders who contribute to the remaining 60.7% of the shares.
The table below outlines the major shareholders of China Gold International Resources Corp. Ltd. as of the most recent financial report:
| Shareholder | Ownership Percentage | Type of Shareholder |
|---|---|---|
| China National Gold Group Corporation | 39.3% | State-owned enterprise |
| Institutional Investors | 45.0% | Varied |
| Retail Investors | 15.7% | Individual shareholders |
As of December 2022, China Gold International Resources reported total assets of approximately USD 2.23 billion and a market capitalization of around USD 691 million. The company generated revenues of approximately USD 532 million in 2022, with a net income of about USD 69 million.
In terms of production, CGG produced around 228,000 ounces of gold and approximately 22,800 tonnes of copper in 2022. This represented a slight increase from their 2021 production numbers, reaffirming the company's growth trajectory in the mining sector.
China Gold International Resources Corp. Ltd. also maintains a strategic focus on optimizing its assets and expanding its resource base, with operations primarily in China and an expansion strategy aimed at increasing its presence in foreign markets.
China Gold International Resources Corp. Ltd. Mission Statement
The mission of China Gold International Resources Corp. Ltd. (CGG) is centered around its commitment to sustainable and responsible mining practices, emphasizing the need for long-term value creation for shareholders, employees, and the communities in which it operates. CGG aims to become a leading gold producer by enhancing its operational efficiency and expanding its resource base through prudent management and strategic investments.
In 2022, CGG reported a total revenue of approximately $600 million, showcasing the company's robust operations in gold and copper production. The company focuses on achieving high standards of environmental management and social responsibility.
CGG's operational excellence is reflected in its production figures. For the year ended December 31, 2022, the company produced approximately 250,000 ounces of gold and 107 million pounds of copper. This performance underscores its mission to leverage advanced mining technology and foster innovation to optimize operational output.
The following table outlines key operational and financial metrics relevant to CGG’s mission statement:
| Metric | 2022 Actual | 2021 Actual | Change (%) |
|---|---|---|---|
| Total Revenue | $600 million | $570 million | 5.26% |
| Gold Production (ounces) | 250,000 | 245,000 | 2.04% |
| Copper Production (pounds) | 107 million | 105 million | 1.90% |
| Operating Income | $140 million | $135 million | 3.70% |
| Net Income | $110 million | $100 million | 10% |
CGG is also committed to enhancing its corporate governance framework, ensuring transparency and accountability in its operations. The company has a diverse board of directors with a strong mix of mining and financial expertise aimed at steering the firm towards achieving its strategic goals while adhering to ethical practices.
Furthermore, CGG is focused on the sustainability aspect of its operations. In 2022, the company invested approximately $50 million in community development projects and environmental conservation efforts, reinforcing its commitment to corporate social responsibility.
By aligning its operations with its mission statement, CGG not only aims to deliver strong financial performance but also to create positive impacts in the regions where it operates, fostering an environment of mutual growth and development.
How China Gold International Resources Corp. Ltd. Works
China Gold International Resources Corp. Ltd. is a prominent minerals exploration and mining company headquartered in Beijing, China. It is primarily engaged in the acquisition, exploration, and development of mineral properties, particularly gold, copper, and other precious metals. The company operates a portfolio of mining projects, with a focus on the domestic and international markets.
As of 2022, the company reported production of approximately 265,055 ounces of gold and 40.5 million pounds of copper at its mining operations. The principal mining sites include the CSH Gold Mine in Inner Mongolia and the Jiama Copper-Gold Mine in Tibet.
Financial Performance
In the fiscal year 2022, China Gold International Resources achieved a total revenue of USD 427.6 million, marking an increase of 15.3% compared to USD 370.5 million in 2021. The cost of sales for the same year was USD 309.8 million, leading to a gross profit of USD 117.8 million.
Below is a table summarizing key financial metrics for the last three fiscal years:
| Financial Metric | 2022 (USD million) | 2021 (USD million) | 2020 (USD million) |
|---|---|---|---|
| Total Revenue | 427.6 | 370.5 | 347.2 |
| Cost of Sales | 309.8 | 275.0 | 262.3 |
| Gross Profit | 117.8 | 95.5 | 84.9 |
| Net Income | 63.2 | 55.2 | 42.1 |
Operational Insights
The CSH Gold Mine achieved significant milestones in 2022, with production reaching around 140,000 ounces of gold. The site operates with a low all-in sustaining cost (AISC) of approximately USD 920 per ounce, positioning it competitively within the industry.
At the Jiama Copper-Gold Mine, production levels for 2022 were approximately 125,000 ounces of gold and 40.5 million pounds of copper. The mine has a measured and indicated resource of about 1.9 billion pounds of copper.
Market Position and Stock Performance
As of the end of 2022, China Gold International Resources Corp. Ltd. was trading on the Toronto Stock Exchange (TSX) under the ticker symbol CGG. The stock closed the year at CAD 4.25, reflecting a year-on-year increase of approximately 20%.
Market capitalization stood at around CAD 1.2 billion at the close of 2022. The company's P/E ratio is currently at 23.4, and it has a dividend yield of 1.5%.
Below is a table summarizing stock performance metrics:
| Stock Metric | Value |
|---|---|
| Stock Price (End of 2022) | CAD 4.25 |
| Market Capitalization | CAD 1.2 billion |
| P/E Ratio | 23.4 |
| Dividend Yield | 1.5% |
The company's strategic focus involves expanding its resource base while enhancing production capabilities, which is reflected in its plans to explore additional mining opportunities and enhance its technological processes. This proactive stance aims to bolster their competitive edge in an increasingly dynamic market.
How China Gold International Resources Corp. Ltd. Makes Money
China Gold International Resources Corp. Ltd. primarily generates its revenue through the mining and sale of gold and copper. The company operates two main mines: the CSH gold mine located in Inner Mongolia and the Jiama copper-gold mine situated in Tibet. These operations are integral to its income stream.
Revenue Breakdown
In 2022, China Gold International reported a total revenue of approximately USD 561 million. The revenue composition was notably driven by the following:
- Gold sales: USD 470 million (83.7% of total revenue)
- Copper sales: USD 91 million (16.3% of total revenue)
Production Volumes
The production figures for 2022 were as follows:
| Mine | Gold Production (ounces) | Copper Production (tonnes) |
|---|---|---|
| CSH Gold Mine | 106,756 | - |
| Jiama Copper-Gold Mine | 19,581 | 25,966 |
Cost Structure
Understanding the cost structure is essential for assessing profitability. In 2022, the company faced the following costs:
- Cash cost per ounce of gold produced: USD 1,014
- All-in sustaining cost (AISC) per ounce of gold: USD 1,329
- Cash cost per pound of copper produced: USD 2.45
Market Trends
The global gold market has shown fluctuations in prices, with averages in 2022 being around USD 1,800 per ounce. Meanwhile, copper prices averaged approximately USD 4.00 per pound during the same year. These commodity prices directly impact China Gold International's revenue potential.
Future Prospects
China Gold International has been proactive in exploring additional mining projects. The company has budgets exceeding USD 100 million allocated for exploration and development in 2023, emphasizing its commitment to growth and adaptation in a fluctuating market.
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