FAST NEWS: Shandong Gold mines higher gold prices for big profits
The Latest: Shandong Gold Mining Co. Ltd. (1787.HK) said on Thursday it expects to report a net profit of 650 million yuan ($89.8 million) to 750 million yuan for the first quarter of this year, up 48.1% to 70.9% from the same period of 2023.
Looking Up: The company said its profits were boosted by rising gold prices in the first quarter and contributions from its acquisition of Yintai Gold.
Take Note: The first quarter profit will represent a sequential decrease from the company’s 983 million yuan profit in last year’s fourth quarter.
Digging Deeper: Headquartered in Jinan, capital of East China’s Shandong province, Shandong Gold is a state-owned mining company mainly engaged in gold mining, processing and sales, and was listed on the Hong Kong Stock Exchange in 2018. Rising gold prices and a string of large mergers in the last two years have not only boosted the company’s revenue each year, but also helped it return from the red to the black, including an 86.8% rise in its net profit last year to 2.33 billion yuan.
Market Reaction: Shares of Shandong Gold rose on Friday, closing up 3.1% at HK$19.5 by the midday break. The stock now trades near the upper end of its 52-week range.
Translation by A. Au
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