Net profit increased by 50% in the first three quarters
In the third quarter report, Zijin Mining did not explain the reason for the change in net profit. When explaining the change of net cash flow from operating activities (up 63.52% year-on-year), the company said: it is mainly due to the increase of sales of gold and copper, the rise of gold price, and the decrease of cost of some mineral products, etc
Although the explanation is relatively brief, Zijin Mining disclosed in detail its production and sales volume, sales unit price, unit sales cost and gross profit margin classified by products in the third quarter report. According to the disclosed information, the product that contributed the most to the gross profit increment of Zijin Mining in the first three quarters was mine gold.
In the first three quarters of 2020, the gross gold profit of Zijin Mining is about 5.109 billion yuan, which is 3.184 billion yuan in the same period of 2019, with a year-on-year increase of 1.925 billion yuan and a year-on-year increase of 60.44%. The second largest increase in gross profit of copper mines was 1.567 billion yuan.
From the perspective of volume price segmentation, in the first three quarters of 2020, Zijin Minings gold production and sales volume was about 27400 kg, about 28000 kg in the same period of last year, with a slight decrease of 2.18% year-on-year. In the first three quarters of this year, the unit price of gold produced by Zijin mining was about 362.24 yuan / g, which was 290.1 yuan / g in the same period of 2019, with a year-on-year increase of about 25%.
Private placement fund positions
Shandong gold said in the announcement: due to the economic downturn of the worlds major economies, global monetary easing and other factors, the international gold price has risen substantially since 2020 due to the demand for safe haven. The company keeps a close eye on the opportunity of gold price rise and timely organizes gold sales. From January to September 2020, the gross profit of self-produced gold sales increased significantly, and the profit achieved a good growth year on year.
It is worth noting that in the context of the rise in gold prices, Qiu Guolus private equity Gaoyi assets adjusted the position of Zijin Mining in the third quarter.
However, another fund under the name of Gaoyi assets - CITIC Trust Co., Ltd. - CITIC Trust Ruijin phase 43 Gaoyi Xiaofeng investment collective fund trust plan reduced the position of Zijin Mining in the third quarter. As of the end of the third quarter, the fund held about 214.55 million shares of Zijin mining, a decrease of about 48.5 million shares compared with the end of June.
This also means that, if combined, Gaoyi assets into Zijin Minings top ten shareholders two funds as a whole have reduced the positions of Zijin mining, with a total reduction of about 16.34 million shares.
In addition, Zijin Minings third quarterly report showed that the shares held by Hong Kong Central Clearing (agent) Co., Ltd., Industrial Bank Co., Ltd. - xingquantrend investment hybrid securities investment fund in Zijin mining industry increased compared with the end of June.
Daily economic news reporter noted that many domestic leading research institutions are optimistic about the sustainability of this round of golden cycle.
In a research report on July 28 this year, CITIC Securities held that the outbreak of the US epidemic is once again increasing the uncertainty of economic restart, the pressure on corporate debt has increased sharply, and the profit deterioration may lead to the risk of a second decline in US stocks. In order to hedge against the impact of the epidemic and increase fiscal stimulus, the size of government debt is approaching the upper limit, impacting the US dollar credit system, and raising the target price of gold in 2020 / 2021 to 2100 / 2500 US dollars per ounce.
In the Research Report at the end of August, Evergrande Research Institute said: looking forward to the future, in the short term, first, the current gold price has been in a high range; second, with the gradual approach of the new crown vaccine, the U.S. economic recovery may support the recovery of the US dollar index, and the gold price may experience some adjustment in the short term. In the long run, the U.S. and the global economy continue to have downward pressure, the tone of monetary policy easing in various countries remains unchanged, the long-term real interest rate is downward, the global geopolitical and financial risks are frequent, and under the continuous trend of gold purchase demand from the central bank, we believe that there is still support for this round of gold cycle.
In the Research Report at the end of September, Zhongtai Securities said: although in the short term, there is a certain negative correlation between the trend of gold and the US dollar, but in the long run, this negative correlation is very weak. The main reason for the fall of gold price is the decrease of inflation expectation. From the big market point of view, the U.S. economic recovery is hindered, the pace of the Feds water release will not stop, and the gold market will not end. Under the premise of releasing water, deflation is expected to be short-term, inflation expectation will tend to pick up, and gold can be gradually allocated to the left.
Source: Ren Hui, editor in charge of daily economic news_ NBJ9607