Recently, with the disclosure of the 2023 annual reports of A-share listed companies, the report cards of listed gold and mineral companies have also been gradually revealed.
According to the annual report, in 2023, eight A-share gold mining listed companies, including Zijin Mining Group Co., Ltd. (hereinafter referred to as Zijin Mining) and Shandong Gold Mining Co., Ltd. (hereinafter referred to as Shandong Gold), have more than 50 gold mines around the world, mining and smelting more than 200 tons of gold, with a total operating income of 459.938 billion yuan, a year-on-year increase of 10.09%, and a net profit of 27.336 billion yuan, a year-on-year increase of 12.54%, equivalent to a daily income of 74.89 million yuan.
Gold is selling well, and 8 companies have a net profit of 27.3 billion
It is understood that there are 12 listed gold and mineral companies in A-shares, and 8 have disclosed their 2023 annual reports, and rising performance is the main tone.
In terms of operating income, Zijin Mining's operating income in 2023 will be 293.403 billion yuan, a year-on-year increase of 8.54%, the highest among the eight companies. Sichuan Rongta Gold Co., Ltd. (hereinafter referred to as Sichuan Gold) had an operating income of 629 million yuan, a year-on-year increase of 33.13%, the highest growth rate.
It is worth noting that the operating income of Yintai Gold Co., Ltd. (hereinafter referred to as Yintai Gold) and Shandong Yulong Gold Co., Ltd. (hereinafter referred to as Yulong Co., Ltd.) declined compared with the same period last year, of which the operating income of Yulong Co., Ltd. was 2.424 billion yuan, a year-on-year decrease of 77.83%.
According to the record of investor relations activities disclosed by Yintai Gold on March 26, the decline in operating income in 2023 was mainly due to the decline in trading revenue, and the profit margin of trading business was lower and its contribution to profit was small. The year-on-year increase in net profit attributable to the parent company was mainly due to the increase in sales volume of mineral products and the increase in average selling price.
As for the reasons for the change in operating income, Yulong said in the annual report that it was mainly due to the net method accounting for some bulk trade businesses in the current period.
According to public information, previously, Yulong shares were enterprises with bulk commodity trade as their main business, and in recent years, gold and precious metals and new energy and new material minerals have been taken as the main business direction.
According to the annual report of Yulong shares, the scale of the company's gold mining business was relatively stable during the reporting period, and the scale of bulk trade gradually decreased. In 2023, the company's gold mining and dressing operating income will be 1.243 billion yuan, a year-on-year increase of 772.98%, and the bulk trade operating income will be 1.162 billion yuan, a year-on-year decrease of 89.23%. Yulong Co., Ltd. said in the annual report that in 2024, Yulong Co., Ltd. will firmly clear the relevant bulk trade business, and no longer engage in bulk trade business unrelated to the mining business;
In terms of net profit, the net profit of the eight companies all showed an upward trend, with a total net profit of 27.336 billion yuan, equivalent to a daily profit of 74.89 million yuan. Among them, Zijin Mining led the way with a net profit of 21.119 billion yuan, and the net profit of Shandong Gold, Yulong Co., Ltd. and Chifeng Jilong Gold Mining Co., Ltd. (hereinafter referred to as Chifeng Gold) increased by more than 50% year-on-year. Among them, the net profit of Shandong Gold was 2.328 billion yuan, a year-on-year increase of 86.57%, which was the company with the highest growth rate.
Shandong Gold once mentioned the reasons for the pre-profit in the performance pre-increase announcement, including the rise in gold prices. Shandong Gold said that in 2023, the company will further strengthen the construction of the research and analysis team, do a good job in market tracking research, comprehensively improve the ability of price research and judgment, grasp the price trend, make full use of the high operation opportunity of gold prices, and the sales price of gold is better than the level of the same period last year.
Chifeng Gold said in its annual report that the gross profit margin of the company's gold products increased by 8.05 percentage points compared with the previous year, benefiting from the rise in gold prices and the effective cost reduction and cost control measures taken by the company, as well as the relatively stable ore grades of various mines.
In 2023, the gold price has been soaring, refreshing record highs many times. Wind shows that the London spot gold price at the end of 2023 is $2,062.40 / ounce, up 12.39% from the opening price of $1,835.05 / ounce at the beginning of 2023, and the annual average price is $1,940.54 / ounce, up 7.80% from $1,800.09 / ounce in the previous year.
The annual output is more than 257 tons of gold
Behind the performance growth, the gold output of 8 companies' own mines reached a new high. According to the annual report, the total gold production of the eight companies in 2023 is about 257.11 tons. Except for Sichuan Gold and Shandong Hengbang Smelting Co., Ltd. (hereinafter referred to as Hengbang Co., Ltd.), the rest of the company's disclosed data are mainly mineral gold production, of which Zijin Mining's mineral gold output in 2023 will be 67.73 tons, a year-on-year increase of 20.17%. Hunan Gold Co., Ltd. (hereinafter referred to as Hunan Gold) and Shandong Gold also produced more than 40 tons of gold from mineral mines.
Sichuan Gold said on April 9 in response to the company's annual gold output on the investor interactive platform that in 2023, the company will produce 1,670.72 kilograms of gold concentrate metal, and at the same time, it will produce 154.19 kilograms of synthetic metal.
Hengbang's gold production in 2023 will be 73.88 tons, but it did not disclose in its annual report whether the output is its own mineral gold. On April 22, Zhongxin Jingwei learned from the securities department of Hengbang shares that the gold output disclosed by Hengbang shares is the total amount of all gold products including its own mineral gold, synthetic gold, etc., and the company's own mineral gold is less, and the smelting gold materials mainly rely on outsourcing.
Zijin Mining said in its financial report: "The company's gold resources and production capacity rank first among major listed mining companies in China and Asia, and top 10 in the world." According to the data of the China Gold Association, in 2023, China will produce 297.3 tons of gold from mines, which is equivalent to about 23% of China's total. ”
Overall, among the eight companies, the gold output of two companies, Hunan Gold and Yintai Gold, declined compared with the same period last year, while the remaining six companies increased compared with the same period last year.
The largest increase in gold production was Yulong, which mined 2.85 tons of gold in 2023, a year-on-year increase of about 749.46%. Yulong Co., Ltd. pointed out in the annual report that at present, the Parkingo gold mine (located in Queensland, eastern Australia) has reached full production, and the mine will produce 2.85 tons of gold in 2023, a new high in the mining area in the past 15 years, and a net profit of 374 million yuan, the highest level in history. In 2022 and 2023, the Parkingo Gold Mine will achieve a cumulative net profit of A$156 million (about RMB 730 million at the current exchange rate), completing 134.68% of the three-year performance commitment, and completing the performance VAM target one year ahead of schedule.
The annual report shows that in 2023, the gross profit margin of the gold sector of Yulong Co., Ltd. will reach 52.70%, the revenue will increase by 772.98% year-on-year, the revenue will account for 52.01%, and the net profit contribution will be as high as 88.88%. In the first quarter of 2024, Yulong's gold mining and dressing business revenue accounted for 93.16%, achieving an operating income of 354 million yuan, a year-on-year increase of 6.09%, and a net profit of 131 million yuan, a year-on-year increase of 28.04%.
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There are more than 50 "gold mountains" in the world
The production of more than 200 tons of gold is inseparable from large and small gold mines.
According to the annual report, as of 2023, the above eight companies have more than 50 gold mines worldwide. Among them, there are more than 15 Zijin Mining and Shandong Gold Mines. As of 2023, Zijin Mining, Shandong Gold, Chifeng Gold and Yulong have all invested in gold mines outside China.
Although Shandong Gold has less total gold production than Zijin Mining, it has more mines within China. Shandong Gold said in its annual report that in 2023, Shandong Gold will have 10 mines with an annual output of more than 1 ton of gold, of which the total domestic mines will produce 35.34 tons of gold, a year-on-year increase of 8.37%, making it a listed company with the highest mineral gold output in China.
In addition to their own mines that have been mined for many years, Zijin Mining and Shandong Gold have started a "buy, buy, buy" model, investing in gold mines and mergers and acquisitions of gold industry-related companies around the world.
Zijin Mining said in its annual report that it will complete the delivery of the Rosbel Gold Mine in Suriname and the Hamagotai Copper-Gold Mine in Mongolia in early 2023, of which the Rosbel Gold Mine is one of the world's largest gold mines with the largest transaction scale and the best transaction cost in 2023, with a resource of 193 tons of gold, and in 2023, the M&A will increase efficiency in the current year, with 7.6 tons of mineral gold from February to December and 7.9 tons of planned mineral gold in 2024.
According to the announcement, Shandong Gold will complete the premium acquisition of Yintai Gold of 12.76 billion yuan in the first half of 2023, and the current shareholding ratio of Shandong Gold is 28.89%. The acquisition of Yintai Gold has enabled Shandong Gold to achieve its "gold production KPI" in 2023, and at the beginning of 2023, Shandong Gold set a target of "gold production of no less than 39.641 tons".
According to Shandong Gold's annual report, in 2023, Shandong Gold's mineral gold output will reach 41.78 tons (including the output after Yintai Gold is incorporated into the company's financial statements), an increase of 3.10 tons or 8.03% year-on-year, equivalent to 14.06% of the total mineral gold of domestic mining enterprises in 2023. Yintai Gold's gold production in 2023 is approximately 2.52 tonnes. This means that if Yintai Gold's gold increment is removed, Shandong Gold will produce 39.26 tonnes of gold annually.
It is worth noting that the annual report shows that Shandong Gold's gold production plan for 2024 is not less than 47 tons, in order to achieve this goal, in addition to accelerating prospecting and increasing reserves, Shandong Gold is also preparing to accelerate the pace of mergers and acquisitions of mining rights projects around existing mines and important metallogenic belts in China, and promote the acquisition of overseas high-quality resources.
"We must do everything possible to increase net profits, improve core competitiveness, and merge mines with all odds. At the same time, it will fully focus on the main business of mining, return funds for mine construction and mining mergers and acquisitions, in-depth implementation of industrial transformation, and build an industrial structure that focuses on core mining, guaranteed profitability and sustainable development.
Sichuan Gold pointed out in the annual report that in recent years, under the background of national industrial policy adjustment, the gold mining industry resource integration mergers and acquisitions competition is fierce, and all gold enterprises are striving to improve the quantity and quality of resources, and the superior resources are further concentrated in large gold enterprises. After years of development, China's gold mining and dressing industry has initially formed a pattern dominated by large gold enterprises and the coexistence of small and medium-sized enterprises.
Source: Sino-Singapore Jingwei