In the first three quarters of 2020, the gross profit of Zijin Minings mine is about 5.109 billion yuan
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
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%.
In contrast, Zijin Minings copper gross profit growth relies more on volume increase rather than price rise. In the first three quarters of 2020, Zijin Minings copper production and sales volume is about 339600 tons, about 260000 tons in the same period of last year, with a year-on-year growth of about 30%. In the first three quarters of this year, the unit price of copper produced by Zijin mining was about 35777 yuan / ton, compared with 35683 yuan / ton in the same period of last year, with a slight increase of 0.26% over the same period of last year.
Private placement fund positions
Coincidentally, Shandong gold (600547, SH; yesterdays closing price of 25.82 yuan) released the first three quarters of 2020 performance pre increase announcement shows that the companys first three quarters of this years net profit to the parent is expected to be between 1.75 billion yuan and 1.95 billion yuan, an increase of 85% to 105% year-on-year.
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.
Zijin Minings 2020 semi annual report shows that Shanghai Gaoyi asset management partnership (limited partnership) - Gaoyi Xiaofeng No.2 letter fund held about 382.96 million shares of Zijin Mining at the end of June this year. As of the end of the third quarter, the funds shareholding increased to 415.14 million shares, adding about 32 million shares in the third quarter.
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