Investment Rating - The report maintains a "Strong Buy" investment rating for China Gold International [3] Core Views - The company achieved a turnaround in its financial performance for 2024, with a revenue of $760 million, representing a year-on-year increase of 64.7%, and a net profit of $60 million, marking a return to profitability [1][2] - The report highlights the significant recovery in Q4 2024, with revenues reaching $290 million, a year-on-year increase of 312%, and a net profit of $70 million, reflecting a 148.1% quarter-on-quarter growth [1] - The company is actively advancing the construction of the third phase tailings storage facility at the Jiama mine, which is expected to enhance production capacity by approximately 30% by mid-2027 [6] Financial Data and Valuation - The total revenue for 2024 is projected at 5,439 million yuan, with a year-on-year growth of 67% [2] - The net profit for 2025 is estimated to reach 2,314 million yuan, with a corresponding PE ratio of 8.8 [2][10] - The company’s total assets are expected to grow from 20,077 million yuan in 2023 to 26,351 million yuan by 2027 [7] Production and Cost Insights - The gold production from the Jiama mine is expected to be 1.7 tons in 2024, an increase of 1.1 tons year-on-year, while copper production is projected at 48,000 tons, up by 2.8 tons [6] - The report notes that the total production cost for copper is anticipated to decrease as production increases, with Q4 2024 costs dropping to $7,302 per ton [6] Shareholder Information - The major shareholder is China National Gold Group Corporation, holding a 40.01% stake in the company [3]

Investment Rating - The report maintains a "Buy" rating for the company [8] Core Views - The company achieved a revenue of $757 million in 2024, a year-over-year increase of 64.69%, and turned a profit with a net income of $63 million [1] - The company is expected to operate at full capacity in 2025, leading to significant growth in net income [1][5] - The company anticipates a decrease in gold production from the Changshanhao mine in 2025, while the Jiamar mine is expected to maintain full operational capacity [5] Summary by Sections Financial Performance - In Q4 2024, the company reported a revenue of $294 million, a quarter-over-quarter increase of 15.31%, and a net income of $67 million, up 148.07% quarter-over-quarter [1] - The Jiamar mine produced approximately 20,000 tons of copper and 0.74 tons of gold in Q4 2024, with a unit cost of $2.74 per pound, showing a decrease from Q3 [2] - The Changshanhao mine's gold production was 1.14 tons, with a sales volume of 0.92 tons, which was below expectations [3] Cost and Expenses - In Q4 2024, the company's general and administrative expenses increased by $8 million, and research and development expenses rose by $3.4 million, leading to a total expense increase of approximately $2 billion [4] - The increase in costs nearly offset the increase in gross profit for the quarter [4] Future Outlook - The company projects a copper production of 63,000 to 67,000 tons and gold production of 2.15 to 2.3 tons in 2025, with a processing capacity of 34,000 tons per day [2] - The company has adjusted its cost assumptions for the Changshanhao mine for 2025-2026, estimating net income of $268 million and $291 million for those years [5] - The target price for the company's stock is set at HKD 60.74, reflecting a reduced valuation discount due to improved earnings visibility [5][9]

Financial Performance - Sales revenue for the year ended December 31, 2024, increased by 64.7% to $756.646 million from $459.434 million in 2023[3] - Net income for the year was $65.298 million, a significant turnaround from a net loss of $22.969 million in 2023[3] - Operating cash flow for the year rose to $306.896 million, compared to just $1.574 million in the previous year[3] - Total revenue increased by 65% from $459.4 million in 2023 to $756.6 million in 2024[21] - Operating income rose from $32 million in 2023 to $123 million in 2024, marking a significant improvement[20] - Net profit increased by $88.3 million to $65.3 million in 2024, compared to a net loss of $23 million in 2023[21] - The company reported a net profit of $68.3 million for Q4 2024, compared to a net loss of $17.5 million in Q4 2023[27] - Operating income for Q4 2024 was $95.9 million, a significant improvement from an operating loss of $13.2 million in Q4 2023[27] - The company reported a net profit of $62,732 thousand for the year ended December 31, 2024, compared to a loss of $25,500 thousand in the previous year[124] - The total comprehensive income for the year was $58.147 million, compared to a loss of $27.907 million in 2023[118] Production and Sales - Gold production for the three months ended December 31, 2024, increased by 137% to 60,406 ounces from 25,500 ounces in the same period of 2023[17] - Copper production for the same period was 44.1 million pounds, a substantial increase from 184,077 pounds in 2023[17] - Total gold production increased by 10% from 147,963 ounces in 2023 to 162,652 ounces in 2024[21] - Copper production surged by 139% from 44.2 million pounds (approximately 20,051 tons) in 2023 to 105.7 million pounds (approximately 47,929 tons) in 2024[21] - Sales revenue for Q4 2024 increased to $293.6 million, up from $71.3 million in Q4 2023, representing a growth of 311%[32] - Gold sales from Changshan Mine reached $78.8 million in Q4 2024, compared to $49.85 million in Q4 2023, an increase of 58%[28] - Copper sales revenue surged to $106.16 million in Q4 2024, a significant increase from $12.88 million in Q4 2023[29] - Sales revenue from the Jiamar Mine reached $214.8 million, a significant increase of $193.3 million compared to $21.5 million in the same period of 2023[33] Cash Flow and Liquidity - Cash and cash equivalents at the end of 2024 were $183.779 million, up from $97.237 million in 2023[3] - The net cash inflow from operating activities for the year ended December 31, 2024, was $306.9 million, primarily driven by depreciation of $121.3 million and pre-tax profit of $93.2 million[74] - The net cash outflow from investing activities for the year ended December 31, 2024, was $204.9 million, mainly used for time deposits of $133.4 million and property, plant, and equipment purchases of $48.3 million[75] - The net cash outflow from financing activities for the year ended December 31, 2024, was $16.2 million, primarily due to repayment of borrowings amounting to $157.0 million[76] - The company's debt-to-equity ratio as of December 31, 2024, was 0.42, down from 0.46 as of September 30, 2024, with total debt of $742.2 million and total equity of $1,786.2 million[78] Expenses and Costs - General and administrative expenses increased to $47.6 million for the year ended December 31, 2024, from $39.0 million in 2023, driven by operational support costs related to the Jiamar Mine's recovery[40] - Research and development expenses for the year ended December 31, 2024, were $15.7 million, an increase from $8.7 million in 2023, focusing on improving recovery rates and optimizing mining processes[40] - Financing costs decreased to $22.4 million for the year ended December 31, 2024, from $25.0 million in 2023, due to strategic management of the loan portfolio[42] - The company incurred mining costs of $58.0 million, processing costs of $93.0 million, and transportation costs of $2.9 million for the year ended December 31, 2024[77] Mining Operations and Projects - The company plans to continue its expansion and development projects in the Changshan Gold Mine and Jiama Copper-Gold Polymetallic Mine[10] - The second phase of the processing plant is set to resume operations on May 30, 2024, with a daily processing capacity of 34,000 tons[22] - The company plans to construct a new tailings storage facility, expected to be operational in the first half of 2027, which will increase total daily processing capacity to 44,000 tons[22] - The company is actively exploring new resources in the surrounding areas of the Jiamar mining area, indicating significant resource potential[26] - The company continues to evaluate the potential for underground operations at the Changshanhao Mine[49] Contracts and Agreements - New contracts signed include a $4.1 million contract for slope management engineering at the open-pit mine, effective from May 10, 2024[50] - Major new contracts established include a blasting engineering service project valued at $6.22 million and a working capital loan agreement for $42.12 million with Agricultural Bank of China[57][58] - The total value of new contracts signed in 2024 amounts to approximately $280.83 million, including various engineering and procurement agreements[58] Financial Position and Equity - As of December 31, 2024, the company's accumulated earnings were $433.6 million, operating capital was $327.0 million, and total borrowings amounted to $742.2 million[68] - The company has total capital commitments of $714.4 million for bank loan repayments, with $148.7 million due within one year[83] - The company declared dividends amounting to $146,673 thousand in 2024, consistent with its commitment to return value to shareholders[124] - The company plans to distribute a total dividend of $31.7 million for the year ending December 31, 2024, consisting of a basic dividend of $0.05 per share and a special dividend of $0.03 per share[96] Risks and Compliance - The company faces several risk factors including metal price fluctuations, regulatory changes, and reliance on management, which could significantly impact its business and financial performance[100] - The company is subject to various risks associated with its operations in the People's Republic of China, which may differ from those in other countries[100] - The company has not made any significant changes to its internal controls over financial reporting that would materially affect its financial reporting[99] Accounting and Reporting - The audit opinion confirms that the consolidated financial statements reflect the group's financial position and performance in accordance with International Financial Reporting Standards[103] - The group recognizes revenue upon the transfer of control of goods or services to customers, which occurs when performance obligations are fulfilled[146] - The group assesses expected credit losses based on the expected credit loss model, updating the amount at each reporting date to reflect changes in credit risk[195] - The group measures lease liabilities at the present value of future lease payments, and right-of-use assets are recognized separately in the consolidated financial statements[156]

Investment Rating - The report assigns a "Buy" rating for China Gold International Resources Corp. [3] Core Views - The company is expected to benefit from the gradual resumption of operations at the Jiama mine, with a projected annual gold production of approximately 49,000 tons and copper production reaching 44,500 tons. The report anticipates a bullish trend in gold and copper prices, leading to estimated net profits of $132 million, $361 million, and $423 million for 2024, 2025, and 2026 respectively, with corresponding EPS of $0.33, $0.91, and $1.07 [8][9]. Summary by Sections Company Overview - China Gold International Resources Ltd. is a Hong Kong-listed company primarily engaged in gold and copper mining, backed by the China National Gold Group. The company operates two major mines: the Changshan Gold Mine in Inner Mongolia and the Jiama Mine in Tibet. In 2022, the company produced 7.4 tons of gold and 85,000 tons of copper, but production was affected in 2023 due to the Jiama mine's temporary shutdown [24][28]. Mine Resumption and Performance Recovery - The Jiama mine is set to resume operations in mid-2024, contributing significantly to profit recovery. The company reported a revenue of $463 million in the first three quarters of 2024, a year-on-year increase of 19.31%, with a net profit of -$0.05 million, reflecting a 40.07% improvement compared to the previous year. The recovery is attributed to the resumption of the Jiama mine's second-phase processing plant and the stable production at the Changshan mine [35][36]. Resource and Production Capacity - The Jiama mine has substantial resources, with proven and controlled copper reserves of 5.5436 million tons and gold reserves of 4.39 million ounces as of the end of 2023. The mine's production capacity is expected to support ongoing operations for over 30 years, with a design capacity of 50,000 tons per day [9][64]. Financial Projections and Valuation - The report projects significant revenue growth for the company, with expected revenues of $884.16 million, $1.354 billion, and $1.615 billion for 2024, 2025, and 2026 respectively. The anticipated P/E ratios for these years are 16.37, 6.01, and 5.12, indicating a favorable valuation outlook [12][8].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 63.42 HKD, indicating a potential upside of 79% from the current price of 35.50 HKD [2][4]. Core Insights - The company achieved a turnaround in Q3 2024, reporting a revenue of 255 million USD, a 309% year-on-year increase, and a net profit of 27.9 million USD, reversing a loss of 58.7 million USD from the previous year [2]. - The recovery in the Q3 performance is attributed to rising gold and copper prices, with gold reaching 2,629.95 USD/ounce, a 12.8% increase since June, and copper prices remaining historically high due to tightening supply and increased demand from the renewable energy sector [2]. - The resumption of operations at the Jiama mine has led to a decrease in cash production costs to 3.85 USD/pound, a 4.9% reduction from the previous quarter [2]. - The company has provided production guidance for 2024, expecting gold production from the Changshanhao mine to be between 3.3 to 3.5 tons and copper production from the Jiama mine to be between 43,200 to 44,500 tons [2]. Financial Summary - For the fiscal year ending December 31, 2022, the company reported revenues of 1.10 billion USD, which decreased by 3% year-on-year. In 2023, revenues dropped significantly to 459.43 million USD, a 58% decline [3][5]. - The forecast for 2024 anticipates a revenue increase to 764.01 million USD, representing a 66% growth, with net profit projected to recover to 95.4 million USD [3][5]. - The company’s earnings per share (EPS) is expected to rise from -0.06 USD in 2023 to 0.24 USD in 2024, reflecting a significant recovery [3][5]. - The price-to-earnings (PE) ratio is projected to be 19.2 in 2024, decreasing to 5.0 in 2025 and 4.7 in 2026, indicating an attractive valuation compared to historical levels [3][5].

Financial Performance - Sales revenue increased by 309% to $254.6 million compared to $62.3 million in the same period of 2023[8] - Net profit reached $27.9 million, up from a net loss of $30.8 million in the same period of 2023, marking an increase of $58.7 million[8] - Operating cash flow was $156.2 million, compared to an outflow of $31.7 million in the same period of 2023[8] - Sales revenue increased by 19% to $463.1 million for the nine months ended September 30, 2024, compared to $388.1 million in the same period of 2023[9] - Net loss for the nine months ended September 30, 2024, was $3.0 million, an improvement from a net loss of $5.5 million in the same period of 2023[28] - Basic earnings per share for the three months ended September 30, 2024, was $6.84, a significant improvement from a loss of $1.92 in the same period of 2023[80] - The company reported a total of 396,413,753 shares issued and outstanding as of September 30, 2024[73] Production and Operations - Total gold production increased by 51% to 50,160 ounces, up from 33,110 ounces in the same period of 2023[8] - Total copper production was 38.3 million pounds (approximately 17,361 tons), with no copper production reported in the same period of 2023[8] - Total gold production decreased by 17% to 102,245 ounces, down from 122,463 ounces in the same period of 2023[9] - Copper production increased by 40% to 61.5 million pounds (approximately 27,909 tons), compared to 44.0 million pounds (approximately 19,967 tons) in the same period of 2023[9] - The company expects gold production for 2024 at Longshanhao Mine to be between 106,097 ounces and 112,528 ounces (approximately 3.3 tons to 3.5 tons)[14] - The company anticipates copper production for 2024 at Jiama Mine to be between 95.0 million pounds and 98.0 million pounds (approximately 43,200 tons to 44,500 tons)[15] Costs and Expenses - The total production cost per ounce of gold rose by 11% to $1,594, compared to $1,436 in the same quarter of 2023[17] - Total sales cost for the quarter ended September 30, 2024, was $207.8 million, a significant increase from $76.6 million in the same quarter of 2023[21] - General and administrative expenses for the nine months ended September 30, 2024, totaled $29,689 thousand, compared to $28,879 thousand for the same period in 2023, showing a slight increase of approximately 2.8%[102] - The financing costs for the nine months ended September 30, 2024, were $17,077 thousand, compared to $19,323 thousand for the same period in 2023, indicating a decrease of about 11.6%[104] Cash Flow and Liquidity - The net cash inflow from operating activities for the three months ended September 30, 2024, was $156.2 million, primarily driven by an increase in accounts payable and accrued liabilities of $50.7 million[55] - The net cash inflow from operating activities for the nine months ended September 30, 2024, was $244.2 million, supported by an increase in accounts payable and accrued liabilities of $105.6 million[55] - The company has a cash balance of $229.2 million as of September 30, 2024[49] - The company reported a net cash position of $229,158 thousand as of September 30, 2024, compared to $97,237 thousand as of December 31, 2023, reflecting improved liquidity[81] Debt and Financing - The company has secured loans totaling approximately $613 million at an annual interest rate of 2.83% from a banking syndicate led by Bank of China[50] - The company has drawn down approximately $534.2 million from a loan facility secured against the mining rights of the Jiamar mining area[50] - The company’s total liabilities increased to $1,282,974 thousand as of September 30, 2024, from $1,106,975 thousand as of December 31, 2023, indicating a rise in financial obligations[82] - The company has a short-term debt financing of $148.8 million with interest rates ranging from 1.85% to 6.24%[50] Research and Development - Research and development expenses increased to $4.7 million in Q3 2024 from $1.8 million in Q3 2023, driven by efforts to enhance recovery rates and optimize mining processes[21] - The company plans to reinvest in R&D to enhance recovery rates and optimize mining processes as operations gradually resume[26] Legal and Regulatory - The company faces several risks, including fluctuations in metal prices, regulatory changes, and reliance on management, which could significantly impact its business and financial condition[76] - The company has not made any provisions for the ongoing litigation with its suppliers as of September 30, 2024, indicating no expected outflow of economic benefits[138] Shareholder Returns - The company is committed to providing sustainable returns to shareholders, with dividends determined based on operating performance, cash flow, and financial condition[72] - The company did not declare any dividends for the nine months ended September 30, 2024, compared to a special dividend of $146,673,000 for the year ended December 31, 2022[106]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 51.84 [6][7] Core Views - The company reported a narrowing loss in Q2 2024, with revenues of USD 208 million and a net loss of USD 32 million for H1 2024. Q2 revenues were USD 148 million with a net loss of USD 5 million, attributed to the successful resumption of operations at the Jiamar mine and increased copper and gold prices [3][4] - The report adjusts the copper price assumptions for 2024 upwards based on year-to-date trends, while lowering the assumptions for 2025-2026 due to potential negative impacts from a U.S. recession [3][8] - The company is expected to achieve its production targets for copper and gold in 2024, with anticipated production of 43,200 to 44,500 tons of copper and 1,320 to 1,410 kg of gold [3][4] Summary by Sections Financial Performance - For H1 2024, the company reported revenues of USD 208 million and a net loss of USD 32 million. Q2 revenues were USD 148 million, with a net loss of USD 5 million, indicating a significant improvement from previous quarters [3][4] - The average prices for copper and gold in Q2 2024 increased by 16% and 13% respectively, contributing to the reduction in losses [4][11] Production and Operations - The Jiamar mine's second-phase processing plant resumed operations on May 30, 2024, with a processing capacity of 34,000 tons per day, which is 68% of the original capacity. The first-phase plant has ceased operations [3][4] - The company achieved copper production of 2,092 tons in Q1 and 8,363 tons in Q2 2024, with gold production of 110 kg in Q1 and 260 kg in Q2 [3][4] Valuation and Estimates - The report employs a segmented valuation method, estimating that the company's copper and gold business profits will account for 47% and 53% of total profits respectively in 2024. The target price reflects a reduced valuation discount of 20% [3][9] - The expected net profits for 2024-2026 are revised to USD 135 million, USD 314 million, and USD 471 million respectively [3][5]

Financial Performance - Sales revenue increased by 103% to $148.0 million in Q2 2024, compared to $73.0 million in the same period of 2023[7] - Mine operating profit was $29.4 million in Q2 2024, a significant improvement from a mine operating loss of $6.2 million in Q2 2023[7] - Net loss decreased by $48.5 million to $4.8 million in Q2 2024, compared to a net loss of $53.3 million in Q2 2023[7] - Operating cash flow improved to $80.9 million in Q2 2024, compared to an operating cash outflow of $73.5 million in Q2 2023[7] - Sales revenue decreased by 36% from $325.8 million in the same period of 2023 to $208.5 million in the first half of 2024[8] - Net loss of $30.9 million, compared to a net profit of $25.3 million in the same period of 2023, a decrease of $56.2 million[8] - Operating income for Q2 2024 was $16.6 million, a $32.1 million improvement from a loss of $15.5 million in Q2 2023[17] - Net loss for Q2 2024 was $4.8 million, a $48.5 million reduction from a loss of $53.3 million in Q2 2023[18] - Net loss for H1 2024 was $30.9 million, compared to a net profit of $25.3 million in H1 2023[21] - Sales revenue for the three months ended June 30, 2024, was $147.955 million, compared to $73.016 million in the same period in 2023[75] - Mine operating profit for the three months ended June 30, 2024, was $29.443 million, compared to a loss of $6.150 million in the same period in 2023[75] - Operating income for the three months ended June 30, 2024, was $16.631 million, compared to a loss of $15.533 million in the same period in 2023[75] - Net loss for the three months ended June 30, 2024, was $4.844 million, compared to a loss of $53.339 million in the same period in 2023[75] - Net profit attributable to the company's owners for the six months ended June 30, 2024, was a loss of $30.892 million, compared to a profit of $25.321 million in the same period in 2023[76] - Basic loss per share for the six months ended June 30, 2024, was $0.0799, compared to a profit of $0.0608 in the same period in 2023[76] - Total revenue for the six months ended June 30, 2024, was $208.5 million, compared to $325.8 million for the same period in 2023[89] - The company's mining segment reported a profit of $26.3 million from gold production and a loss of $8.3 million from copper concentrate production for the six months ended June 30, 2024[92] - The company's total operating loss for the six months ended June 30, 2024, was $4.8 million[92] - The company's pre-tax loss for the six months ended June 30, 2024, was $22.5 million[92] - Sales revenue for mineral gold and copper concentrate reached $325.794 million, with mineral gold contributing $137.749 million and copper concentrate contributing $188.045 million[94] - Mine operating profit totaled $96.56 million, with mineral gold contributing $41.907 million and copper concentrate contributing $54.653 million[94] - Net loss for the three and six months ended June 30, 2024, was $5 million and $31 million, respectively, despite net operating cash inflows of $81 million and $88 million for the same periods[84] Production and Operations - Total gold production decreased by 13% to 31,373 ounces in Q2 2024, compared to 36,069 ounces in Q2 2023[7] - Total copper production was 18.6 million pounds (approximately 8,454 tons) in Q2 2024, with no copper production in the same period of 2023[7] - Gold production decreased by 42% from 89,317 ounces in the same period of 2023 to 52,087 ounces in the first half of 2024[8] - Copper production decreased by 47% from 44.1 million pounds (approximately 20,019 tons) in the same period of 2023 to 23.3 million pounds (approximately 10,547 tons) in the first half of 2024[8] - The company expects gold production at the Chang Shan Hao mine to range between 106,097 ounces and 112,528 ounces (approximately 3.3 tons to 3.5 tons) in 2024[10] - The company expects copper production at the Gyama mine to range between 95.0 million pounds and 98.0 million pounds (approximately 43,200 tons to 44,500 tons) in 2024[10] - The company expects gold production at the Gyama mine to range between 42,439 ounces and 45,333 ounces (approximately 1.32 tons to 1.41 tons) in 2024[10] - Gold production at the Chang Shan Hao mine decreased by 36% from 36,069 ounces in the same period of 2023 to 22,981 ounces in the first half of 2024[13] - Copper production in the Jiama mining area for Q2 2024 was 8,454 tons (18.6 million pounds), compared to no production in the same period in 2023 due to operational suspension[15] - The Jiama mining area's Phase II concentrator resumed operations on May 30, 2024, with a daily processing capacity of 34,000 tons[15] - Total copper sales volume for Q2 2024 was 8,347 tons (18.4 million pounds) from the Jiama mining area[16] - Revenue from the Changshanhao Mine decreased by $46.4 million to $91.3 million in H1 2024, with gold sales volume dropping to 39,951 ounces from 71,179 ounces in H1 2023[19] - Revenue from the Jiama Mine decreased by $70.8 million to $117.2 million in H1 2024, with copper sales volume dropping to 10,427 tons (23.0 million pounds) from 18,656 tons (41.1 million pounds) in H1 2023[19] - The average realized gold price increased by 18% to $2,285 per ounce in H1 2024 compared to $1,935 per ounce in H1 2023[19] - The average realized copper price increased by 13% to $3.67 per pound in H1 2024 compared to $3.27 per pound in H1 2023[19] - Mine operating profit decreased by $78.7 million to $17.9 million in H1 2024 compared to $96.6 million in H1 2023[19] - The Changshanhao gold mine's production rate was reduced to 40,000 tons per day in 2019, with a mine life of 7 years[26] - Total ore stacked in Q2 2024 was 3.41 million tons, with a gold content of 43,184 ounces, and the overall gold recovery rate decreased to 55.77%[28] - Exploration in 2024 included 3,580 meters of drilling, with 27.81% completed as of the reporting date[29] - The Jiama Mine has a combined mining and processing capacity of 50,000 tonnes per day, with Phase II achieving a capacity of 44,000 tonnes per day since 2018[33] - In Q2 2024, the Jiama Mine processed 1,754,786 tonnes of ore with an average copper grade of 0.56% and a copper recovery rate of 86%[35] - The Jiama Mine's Phase II processing plant resumed operations on May 30, 2024, with a daily processing capacity of 34,000 tonnes[35] - The company has planned two geological exploration projects for 2024 at the Jiama Mine, with a total estimated budget of RMB 34.47 million[36] - The company reported copper, molybdenum, lead, zinc, gold, and silver prices at $2.9/lb, $15.5/lb, $2.9/lb, $0.95/lb, $1,300/oz, and $20/oz respectively[39] - The company's cumulative surplus as of June 30, 2024, is $348.0 million, with operating capital of $207.1 million and borrowings of $795.8 million[42] - The company had 2,121 employees as of June 30, 2024, operating in various regions[71] - The company's total equity as of June 30, 2024, was $1,708.048 million, a decrease from $1,727.741 million as of January 1, 2024[80] - The company's retained earnings as of June 30, 2024, were $347.982 million, down from $380.375 million as of January 1, 2024[80] - The company's total assets as of June 30, 2024, were $1,708.048 million, compared to $1,727.741 million as of January 1, 2024[80] - The company's total liabilities as of June 30, 2024, were $1,686.659 million, compared to $1,706.858 million as of January 1, 2024[80] - The company's total equity attributable to owners as of June 30, 2024, was $1,686.659 million, compared to $1,706.858 million as of January 1, 2024[80] - The company's current assets exceeded current liabilities by approximately $207 million as of June 30, 2024[84] - The company agreed to pay RMB 368 million over six years as compensation for the use of state-owned natural resources from July 2017 to April 2023, with the first payment of RMB 61 million made on August 9, 2024[85] - For the six months ended June 30, 2024, the company recognized RMB 15 million (approximately $2.12 million) as a provision for mining rights payments related to the period from May 1, 2023, to June 30, 2024[85] - Revenue from gold bullion for the six months ended June 30, 2024, was $91.3 million, a decrease from $137.7 million in the same period in 2023[89] - Revenue from copper for the six months ended June 30, 2024, was $85.2 million, compared to $134.4 million in the same period in 2023[89] - The company's total operating loss for the six months ended June 30, 2024, was $4.8 million[92] - The company's pre-tax loss for the six months ended June 30, 2024, was $22.5 million[92] - Sales revenue for mineral gold and copper concentrate reached $325.794 million, with mineral gold contributing $137.749 million and copper concentrate contributing $188.045 million[94] - Mine operating profit totaled $96.56 million, with mineral gold contributing $41.907 million and copper concentrate contributing $54.653 million[94] - Total assets increased to $2.898 billion as of June 30, 2024, up from $2.835 billion at the end of 2023[97][98] - Total liabilities rose to $1.19 billion as of June 30, 2024, compared to $1.107 billion at the end of 2023[97][98] - General and administrative expenses for the six months ending June 30, 2024, amounted to $19.745 million, up from $17.48 million in the same period in 2023[99] - The company incurred a penalty of $8.76 million for grassland occupation during the six months ending June 30, 2024[99] - Net exchange loss for the six months ending June 30, 2024, was $8.368 million, primarily due to foreign exchange fluctuations[94] - The company reported a basic loss per share of $0.0799 for the six months ending June 30, 2024, compared to a profit of $0.0608 in the same period in 2023[103] - No dividends were declared for the six months ending June 30, 2024, compared to a special dividend of $0.37 per share declared in the same period in 2023[102] - Trade and other receivables decreased to $8.436 million as of June 30, 2024, from $17.076 million at the end of 2023[105] - Total inventory value increased to $312.9 million as of June 30, 2024, up from $291.6 million as of December 31, 2023[111] - Depreciation of property, plant, and equipment for the six months ending June 30, 2024, was $57.9 million, compared to $75.1 million for the same period in 2023[112] - Total accounts payable and other payables increased to $198.4 million as of June 30, 2024, from $158.3 million as of December 31, 2023[113] - Total borrowings as of June 30, 2024, amounted to $767.8 million, with $147.6 million due within one year[115] - The company incurred $9.7 million in agricultural land use tax and grassland compensation fees for leased land and recognized right-of-use assets in the first half of 2024[112] - The company violated syndicated loan terms due to frozen assets exceeding RMB 200 million, but lenders waived the right to demand immediate repayment for the next 12 months[118] - Work-in-progress gold inventory increased to $242.9 million as of June 30, 2024, up from $221.7 million as of December 31, 2023[111] - The company spent $3.4 million on construction in progress and $2.3 million on mineral assets in the first half of 2024[112] - Prepayments and deposits for land use rights and water treatment projects totaled $16.9 million as of June 30, 2024[109] - The company's total equity remained unchanged at $1.23 billion as of June 30, 2024, with 396.4 million shares issued and fully paid[117] - China Gold holds 40.01% of the company's issued ordinary shares as of June 30, 2024, unchanged from December 31, 2023[121] - Sales of gold ingots to China Gold and its subsidiaries were $55.112 million for the three months and $91.278 million for the six months ended June 30, 2024[122] - Sales of copper and other by-products to China Gold and its subsidiaries were $92.573 million for the three months and $116.594 million for the six months ended June 30, 2024[122] - Cash and cash equivalents held by China Gold subsidiaries increased to $85.775 million as of June 30, 2024, up from $78.264 million at the end of 2023[123] - Restricted balances held by China Gold subsidiaries slightly decreased to $67.274 million as of June 30, 2024, compared to $67.693 million at the end of 2023[123] - Total amounts payable to China Gold and its subsidiaries increased to $133.805 million as of June 30, 2024, from $125.739 million at the end of 2023[126] - The company's investment in listed equity securities on the Hong Kong Stock Exchange increased to $61.522 million as of June 30, 2024, up from $46.328 million at the end of 2023[129] - The fair value of listed equity securities investments decreased to $45.894 million as of the date of the report's authorization for issue[129] - The company recognized an additional interest expense of $694,000 related to an ongoing litigation case for the six months ended June 30, 2024[130] - The litigation with Zhongxin Fang regarding the delivery of a building and 20 parking spaces, as well as the recovery of related tax risks, remains unresolved as of June 30, 2024, with no impairment loss recognized for the new properties[131] - The cumulative credit loss provision for taxes and other surcharges from Zhongxin Fang as of June 30, 2024, is RMB 22,827,000 (approximately USD 3,203,000), with no additional expected credit loss recognized during the six months ended June 30, 2024[131] - The litigation with Huatai Long's independent suppliers over losses due to the suspension of production at the Jiama Mining Area South Pit is ongoing, with no provision made in the financial statements as of June 30, 2024[132] Costs and Expenses - Total production cost per ounce of gold increased by 19% from $1,354 in the same period of 2023 to $1,608 in the first half of 2024[13] - Cash production cost per ounce of gold increased by 1% from $913 in the same period of 2023 to $924 in the first half of 2024[13] - Copper sales revenue for the Jiama mining area in Q2 2024 was $69.64 million, with an average realized price of $3.74 per pound after smelting fee deductions[14] - Total sales cost decreased by $38.7 million to $190.6 million in H1 2024 compared to $229.2 million in H1 2023[19] - Total sales cost for copper and by-products in Q2 2024 was $81.66 million, with a cost of $4.44 per pound, compared to $30.32 million in Q2 2023[25] - Total cash production cost for copper in Q2 2024 was $74.71 million, or $

Financial Performance - Sales revenue for the six months ended June 30, 2024, was $208.498 million, a decrease of 36% compared to $325.794 million for the same period in 2023[2]. - The company reported a net loss of $30.892 million for the six months ended June 30, 2024, compared to a profit of $25.321 million in the same period of 2023[2]. - Basic loss per share was $(7.99) cents for the six months ended June 30, 2024, compared to earnings of 6.08 cents per share in the prior year[2]. - Sales revenue for the three months ended June 30, 2024, increased by 103% to $148.0 million, compared to $73.0 million in the same period of 2023[8]. - Mining operating profit rose to $29.4 million, a significant increase of $35.6 million from a mining operating loss of $6.2 million in the same period of 2023[8]. - Net loss decreased to $4.8 million, down $48.5 million from a net loss of $53.3 million in the same period of 2023[8]. - Mining operating profit for the first half of 2024 was $17.9 million, a decrease of $78.7 million from $96.6 million in the same period of 2023[22]. - The company reported a net loss of $30.9 million, a decrease of $56.2 million compared to a net profit of $25.3 million in the same period of 2023[25]. - The company reported a total comprehensive income of $(7,965) thousand for the six months ended June 30, 2024[95]. Production and Sales - Total gold production for the six months ended June 30, 2024, decreased by 42% to 52,087 ounces, compared to 89,317 ounces in the same period of 2023[10]. - Copper production for the six months ended June 30, 2024, was 23.3 million pounds, a decrease of 47% from 44.1 million pounds in the same period of 2023[10]. - Gold sales from the Changshanhao mine amounted to $91.3 million, down $46.4 million from $137.8 million in the same period of 2023, with gold sales volume at 39,951 ounces compared to 71,179 ounces in 2023[22]. - Copper sales from the Jiama mine were $117.2 million, a decrease of $70.8 million from $188.0 million in the same period of 2023, with total copper sales of 10,427 tons compared to 18,656 tons in 2023[22]. - The company has withdrawn its annual production guidance for 2023 due to uncertainties surrounding the full resumption of operations at the Jiamar mining area following a tailings spill incident[11]. Cash Flow and Liquidity - Operating cash flow for the six months ended June 30, 2024, was $88.091 million, an increase of 62.5% from $54.175 million in the same period of 2023[2]. - The company reported a net cash inflow from operating activities of $80.89 million for the three months ended June 30, 2024, compared to a cash outflow of $73.54 million for the same period in 2023[56]. - The total cash and cash equivalents increased by $55.18 million for the three months ended June 30, 2024, compared to a decrease of $392.25 million in the same period of 2023[56]. - The company anticipates sufficient operating cash flow to cover planned capital expenditures and debt repayments over the next twelve months[51]. - The company reported a net cash inflow from financing activities of $33.4 million for the six months ended June 30, 2024, mainly due to borrowings of $117.5 million, offset by repayments of $83.8 million[60]. Expenses and Costs - General and administrative expenses increased to $10.6 million for the quarter ended June 30, 2024, from $7.9 million in the same period of 2023[20]. - Total sales cost for the quarter ended June 30, 2024, was $118.5 million, an increase of $39.3 million compared to $79.2 million in the same period of 2023[18]. - The company incurred mining costs of $25.2 million, milling costs of $32.3 million, and transportation costs of $2.1 million for the six months ended June 30, 2024[60]. - Financing costs decreased to $11.4 million in the first half of 2024 from $13.6 million in the same period of 2023, driven by strategic management of the loan portfolio[25]. - The company’s financing costs decreased to $5.722 million from $6.880 million, a reduction of 16.8% year-over-year[90]. Assets and Liabilities - Total assets as of June 30, 2024, amounted to $2,898,052 thousand, up from $2,834,716 thousand as of December 31, 2023, indicating an increase of about 2.2%[93]. - Total liabilities increased to $1,190,004 thousand as of June 30, 2024, compared to $1,106,975 thousand as of December 31, 2023, reflecting an increase of approximately 7.5%[93]. - The company's total equity attributable to owners decreased to $1,708,048 thousand as of June 30, 2024, from $1,727,741 thousand as of December 31, 2023, a decline of about 1.1%[93]. - The company reported a net current asset value of $207,076 thousand as of June 30, 2024, compared to $170,759 thousand as of December 31, 2023, indicating an increase of about 21.1%[92]. - The total borrowings as of June 30, 2024, amounted to $795.8 million, with a cash balance of $157.6 million[51]. Mining Operations and Projects - The company plans to continue its development and expansion projects at the Changshan Gold Mine and the Jiama Copper-Gold Polymetallic Mine[5]. - The company holds a 96.5% interest in the Changshan Gold Mine and 100% ownership of the Jiama Mine, which contains significant copper and gold resources[7]. - The company resumed operations at the first phase of the processing plant on December 15, 2023, and the second phase resumed on May 30, 2024, with a daily processing capacity of 34,000 tons[17]. - The company is evaluating the potential for underground operations at Changshanhao Mine as the open-pit mining approaches the end of its life[32]. - The company has extended its mining rights for the Jiamar mining area for 20 years, expiring in October 2043, under a new agreement with the Tibet Autonomous Region[100]. Shareholder and Governance - The company is committed to providing sustainable returns to shareholders, with dividends determined based on operating performance, cash flow, and financial condition[73]. - The company’s major shareholder, China Gold Group Limited, holds approximately 40.01% of the issued shares, totaling 158,588,330 shares[81]. - The company’s internal controls over financial reporting have been assessed as effective as of June 30, 2024, ensuring timely recording and reporting of financial information[75]. - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange rules for the six months ended June 30, 2024[148]. - The audit committee reviewed the financial statements for the six months ended June 30, 2024, confirming compliance with applicable accounting standards[150].

Investment Rating - The report assigns an "Outperform" rating to China Gold International Resources (2099 HK) [4] Core Views - The company is a state-owned gold and copper resource platform under China Gold Group, a central SOE directly supervised by SASAC [1] - Key assets include Chang Shan Hao Gold Mine (96 5% stake) and Jiama Copper-Gold Polymetallic Mine (100% stake) [1] - The company has maintained a high dividend payout policy, with dividend payout ratios of 42%/37%/66% in 2020-2022 and dividend yields of 8 3%/9 3%/12 7% respectively [4] - Growth strategy focuses on strategic acquisitions, leveraging China Gold Group's international project pipeline and partnerships with other mining companies [4] - The company is expected to benefit from resource revaluation amid rising gold and copper prices, with Jiama mine's resumption driving profitability recovery [4] Financial Projections - Revenue is projected to grow from $742 52 million in 2024E to $1,319 32 million in 2026E, with YoY growth rates of 61 62%/61 77%/9 84% [5] - Net profit is forecasted to recover from -$25 50 million in 2023 to $399 24 million in 2026E [5] - EPS is expected to increase from -$0 06 in 2023 to $1 01 in 2026E [5] - ROE is projected to improve from -1 5% in 2023 to 18 8% in 2026E [5] - The company is valued at 1 9-2 0x 2024E PB, implying a target price range of HK$65 09-68 51 [4] Operational Assumptions - Gold price assumptions: $2,300/$2,415/$2,536 per ounce for 2024-2026 [6] - Copper price assumptions: $9,400/$9,870/$10,364 per ton for 2024-2026 [6] - Chang Shan Hao Gold Mine: Gold sales volume projected at 3 5/3 4/3 4 tons for 2024-2026, with revenue growth of 2%/3%/5% and gross margins of 37%/39%/41% [6] - Jiama Copper-Gold Polymetallic Mine: Copper sales volume projected at 44k/80k/85k tons and gold sales at 1 4/2 6/2 8 tons for 2024-2026, with revenue growth of 134%/93%/11% and gross margins of 32%/44%/49% [6] Peer Comparison - Compared to peers like Zijin Mining (2899 HK), CMOC (3993 HK), and Zhaojin Mining (1818 HK), China Gold International has lower valuation multiples [8] - The company's 2024E PE of 178 47x is higher than peers' average of 35 5x, while its 2024E PB of 11 94x is significantly higher than peers' average of 2 5x [8]