Chifeng Jilong Gold Mining (600988) Q4 2023 earnings summary

Executive summary

• Achieved record operating income of RMB 7.22 billion in 2023, up 15.23% year-over-year, with net profit attributable to shareholders rising 78.21% to RMB 804 million.

• Gold production reached 14.35 tonnes, a 5.79% increase year-over-year, with domestic mines up 43.1% and international mines down 2% due to a flood at Golden Star Wassa.

• All-in sustaining cost of gold decreased 12% year-over-year; net cash flow from operating activities doubled to RMB 2.2 billion.

• Significant progress in cost control, project development, and ESG initiatives, including RMB 26.17 million invested in green mine construction and 1,057 tonnes of CO2 emissions reduced.

Financial highlights

• Operating income: RMB 7.22 billion, up 15.23% year-over-year.

• Net profit attributable to shareholders: RMB 804 million, up 78.21% year-over-year.

• Net cash flow from operating activities: RMB 2.2 billion, up 102.09% year-over-year.

• Basic EPS: RMB 0.49, up 81.48% year-over-year; weighted average ROE: 14.61%.

• Gross profit margin on gold products increased by 8.05 percentage points year-over-year.

Outlook and guidance

• 2024 gold production and sales volume budgeted at 16.02 tonnes; operating income expected at RMB 8.8 billion and net profit at RMB 1.1 billion.

• Focus on new technology adoption, cost control, and prudent estimation of gold prices.