The central bank increased its holdings of gold by 314.11 tons for 17 consecutive months, and the performance of six listed gold companies rose across the board

On April 7, 2024, the official website of the People's Bank of China disclosed the gold reserve data for March 2024, and the national gold reserve reached 72.74 million ounces in that month. From November 2022 to March 2024, the central bank has increased its holdings of gold reserves for 17 consecutive months, accumulating 10.1 million ounces, or about 314.11t in metric terms. During the same period, the main international and domestic gold futures contracts and gold spot prices continued to rise. Six listed companies in the A-share gold mining and smelting industry have achieved good performance across the board.

Source: Photo.com

The central bank's gold reserves have increased for 17 consecutive years, with a cumulative increase of 16.12%

According to the data disclosed on the official website of the People's Bank of China, as of March 2024, the central bank's gold reserves are 72.74 million ounces (troy ounces: imperial units, each ounce is equivalent to 31.10 grams, and the ounces mentioned in this article are troy ounces).

Looking back at the beginning of the current round of central bank holdings of gold reserves, in November 2022, the central bank's gold reserves rose to 63.67 million ounces from 62.64 million ounces in the previous month, thus kicking off the prelude to the central bank's 17-month continuous increase in gold reserves.

The above-mentioned "17 consecutive increases" in gold reserves have increased the mainland's gold reserves from 62.64 million ounces in October 2022 to 72.74 million ounces in March 2024, with a cumulative increase of 10.1 million ounces of gold, and a cumulative increase of 314.11 tons of gold reserves according to the metric system, a cumulative increase of 16.12%.

International and domestic gold futures and spot prices have risen significantly

In the 17 months that the central bank has increased its gold reserves, gold prices in both the international and domestic markets have shown a significant upward trend.

Let's start with the international market. According to the continuous quotation of the main gold futures contract on the COMEX exchange in the United States, as of October 31, 2022, the gold futures price closed at $1636.40 / ounce, and as of March 28, 2024 (March 29 is the US holiday, the market is closed), the gold futures price closed at 2254.80 US dollars / ounce, the closing price hit a record high, and the cumulative increase of 37.79% in 17 months.

According to the "London Gold" quotation in the London gold spot market in the United Kingdom, from the end of October 2022 to the end of March 2024, the international gold spot prices were US$1633.68 / ounce and US$2232.75 / ounce respectively, with a cumulative increase of 36.67% during the period.

Let's look at the domestic market. According to the continuous quotation of the main Shanghai gold contract on the Shanghai Futures Exchange, as of October 31, 2022, the price of Shanghai gold futures closed at 391.66 yuan/gram, and as of March 29, 2024, the price of Shanghai gold futures closed at 531.30 yuan/gram, a cumulative increase of 35.65% during the period.

According to the pure gold spot quotation of the Shanghai Gold Exchange (AU9999), from the end of October 2022 to the end of March 2024, the domestic gold spot price was 391.76 yuan/gram and 527.54 yuan/gram respectively, and the domestic gold spot price increased by 34.66% in the above 17 months.

Six listed companies in the gold industry are doing well in 2023

According to our incomplete statistics, as of April 8, 2024, a total of six A-share listed companies in the gold mining and smelting industry have disclosed their 2023 annual reports. The six companies are Chifeng Jilong Gold Mining Co., Ltd. (stock abbreviation: Chifeng Gold; stock code: 600988. SH), Shandong Gold Mining Co., Ltd. (stock abbreviation: Shandong Gold; stock code: 600547. SH), Yintai Gold Co., Ltd. (stock abbreviation: Yintai Gold; stock code: 000975. SZ), Sichuan Rongta Gold Co., Ltd. (stock abbreviation: Sichuan Gold; stock code: 001337. SZ), Hunan Gold Co., Ltd. (stock abbreviation: Hunan Gold; stock code: 002155. SZ) and Shandong Hengbang Smelting Co., Ltd. (stock abbreviation: Hengbang shares; stock code: 002237.SZ).

According to Chifeng Gold's 2023 annual report, the company's operating income for the current period was 7.221 billion yuan, up 15.23% year-on-year, and the non-attributable net profit was 866 million yuan, up 115.97% year-on-year.

In 2023, Chifeng Gold's mineral gold output will be 14.35 tons, up 5.79% year-on-year, and its mineral gold revenue will be 6.322 billion yuan, up 19.18% year-on-year, and the ratio of mineral gold revenue to the company's total revenue in the current period will be 87.55%.

Chifeng Gold's main business is gold and non-ferrous metal mining and dressing business. In addition, Guangyuan Technology, a holding subsidiary, is also engaged in the disposal of waste electrical and electronic products.

According to Shandong Gold's 2023 annual report, the company's revenue for the current period was 59.275 billion yuan, up 17.83% year-on-year, and the non-attributable net profit was 2.213 billion yuan, up 69.47% year-on-year.

In 2023, Shandong Gold Mineral Gold Production will be 41.78 tons, up 8.03% year-on-year, and gold business revenue will be 56.800 billion yuan, up 19.62% year-on-year (of which, self-produced gold revenue will be 17.866 billion yuan, up 17.67% year-on-year), and the ratio of gold revenue to the company's total revenue in the current period will be 95.82%.

Shandong Gold's main business is the exploration, mining, metallurgy and sales of gold and non-ferrous metals, as well as the production, processing and sales of special equipment for gold mines and building decoration materials.

In July 2023, Shandong Gold completed the acquisition of Yintai Gold shares, gaining control of Yintai Gold, and Shandong Gold became the controlling shareholder of Yintai Gold.

According to Yintai Gold's 2023 annual report, the company's main business is precious and non-ferrous metal mining and processing, as well as metal trading.

In 2023, Yintai Gold's revenue was RMB8.106 billion, and its non-attributable net profit was RMB1.411 billion, up 37.21% year-on-year. Synchronism. The company's synthetic gold revenue was 3.299 billion yuan, an increase of 21.77% year-on-year, and the ratio of synthetic gold revenue to the current revenue was 40.70%.

According to Sichuan Gold's 2023 annual report, the company's revenue for the current period was 629 million yuan, up 33.13% year-on-year, and the non-attributable net profit was 203 million yuan, up 46.72% year-on-year.

In 2023, Sichuan Gold produced 1.65 tons of gold concentrate metal, up 4.12% year-on-year, and the revenue of gold concentrate and synthetic gold business was 583 million yuan and 46.1807 million yuan respectively, and the total revenue of the two main businesses accounted for 100% of the current revenue.

Sichuan Gold's main business revolves around the construction, mining, beneficiation and production and sales of gold concentrate and synthetic gold in the Suoluogou Gold Mine.

According to Hunan Gold's 2023 annual report, the company's revenue for the current period was 23.303 billion yuan, up 10.75% year-on-year, and the non-attributable net profit was 493 million yuan, up 18.45% year-on-year.

In 2023, Hunan Gold produced 4.77 tons of gold, including 3.95 tons of self-produced gold, and its gold revenue was 21.124 billion yuan, up 13.25% year-on-year, and the ratio of gold revenue to current revenue was 90.65%.

Hunan Gold is mainly engaged in the mining and beneficiation of gold, antimony, tungsten and other non-ferrous metal mines, the smelting and processing of gold, antimony, tungsten and other non-ferrous metals, the deep processing of gold and refined antimony, and the import and export of non-ferrous metal mineral products.

According to the 2023 annual report of Hengbang Co., Ltd., the company is mainly engaged in the development of gold mineral resources, precious metal smelting, R&D and production of high-tech materials, and international trade.

In 2023, Hengbang's revenue will be 65.577 billion yuan, up 31.03% year-on-year, and the non-attributable net profit will be 627 million yuan, up 0.24% year-on-year. During the same period, the company's gold output was 73.88 tons, up 58.02% year-on-year, and the gold business revenue was 33.178 billion yuan, up 85.87% year-on-year, and the gold business accounted for 50.59% of the company's total revenue in the current period.