Jiangxi Copper Q2 profit grows on higher output, prices


By Tom Daly

BEIJING, Aug 28 (Reuters) - China's Jiangxi Copper Co 600362.SS, 0358.HK posted a 5% rise in second-quarter net profit as higher production and a strong rally in copper and gold prices cushioned a coronavirus-hit first half.

For the first half, net income fell 42.7% to 745.3 million yuan ($108.6 million), a filing to the Shanghai Stock Exchange showed.

That implies a profit of 585 million yuan for the second quarter, up from 558 million a year earlier, after Jiangxi Copper recorded its lowest earnings since 2017 in the first quarter of 2020.

The Nanchang-based firm is one of the biggest copper smelters in China, the world's top metals consumer.

London copper prices CMCU3 rose more than 20% in the second quarter, completing a Chinese demand-driven recovery after tanking in the first quarter as the coronavirus shattered consumption.

Jiangxi Copper's production volumes also climbed, with copper cathode output up 6.9% at 800,600 tonnes, putting the company more or less on track to hits its annual target of 1.65 million tonnes.

Copper concentrate production grew by 2.6% to 100,460 tonnes.

That helped propel a 39.9% jump in first-half revenue to 146.99 billion yuan.

The company also cashed in on a rally in precious metals in the first half, with gold production almost tripling to 38.5 tonnes and silver output up 222.4% to 544.85 tonnes following the inclusion of 43.15%-owned subsidiary Shandong Humon Smelting Co's 002237.SZ output numbers on its books from July 2019.

Spot gold prices XAU= are up almost 29% this year and have repeatedly hit record highs on a weakening dollar.

Jiangxi Copper last week said it would close a loss-making copper mining subsidiary in China.

Overseas, it will introduce strategic investors into its 49%-owned Baku Tower tungsten project in Kazakhstan this year, it said in Friday's filing.

($1 = 6.8639 Chinese yuan renminbi)

(Reporting by Tom Daly; editing by Jason Neely)

((tom.daly@thomsonreuters.com; +86 10 5669 2119;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.