日韩午夜精品视频,欧美私密网站,国产一区二区三区四区,国产主播一区二区三区四区

 

Zijin to cut output; earnings impact mild

0 CommentsPrint E-mail China Daily, July 29, 2010
Adjust font size:

Employees of Shanghang Waterworks test water quality. [China Daily]

Employees of Shanghang Waterworks test water quality. [China Daily]

Zijin Mining Group, China's biggest gold producer, will reduce production after being instructed to do so by the local government in Fujian, where the company is based.

The decision is expected to cut the company's gold output by 1 ton this year, according to a company statement filed the Shanghai Stock Exchange. Statistics show Zijin produced 75.37 tons of gold in 2009, up 31.05 percent from the previous year.

Shanghang County government made the decision to limit the company's output to a level that can ensure environmental safety.

On July 4, around 9,000 cubic meters of toxic waste water spilled from a blown-out sewage tank at a Zijin copper plant into the Tingjiang River in Fujian province, killing thousands of fish.

The decision to restrict gold output will not severely hurt the gold producer's earnings this year, analysts said. However, the price tag for the clean-up may cast a shadow on the firm's future performance.

Zijin Mining's A shares rose 2.45 percent to end at 5.86 yuan on Wednesday after a two-day suspension. The gold miner's share price dropped 2 percent since the spill was revealed to the public in mid-July.

"Its profit may be cut by 200 million yuan resulting from the gold output reduction, which is very slight if compared with its total asset size," said Zhu Lida, an analyst at Northeast Securities.

Zijin Mining realized a 3.5 billion yuan net profit in 2009 with total assets of 29.6 billion yuan. Its gold business contributed 73.6 percent to the company's overall net profit last year.

The output restriction is better than "an overall production shutdown" previously handed down by the Fujian Provincial Department of Environment Protection.

"The impact of the output limit on the nation's gold prices is also negligible, even though the company's total gold output is large," said Zhu.

Zijin accounted for 24 percent of the nation's total gold production in 2009.

However, market jitters remain due to uncertainties over a possible government penalty on Zijin over the spill.

"We're not sure how much Zijin will spend on environment protection efforts after the accident, and the penalty is pending.

Therefore, it's still too early to predict how the spill will affect the company's earnings," said Fan Haibo, an analyst from Cinda Securities.

Implicated officials from the affected county and Zijin Mining were dismissed after the spill.

The company may also face compensation claims for fishing losses in the area, but the specific penalty has yet to determined by the Fujian provincial government.

Print E-mail Bookmark and Share

Go to Forum >>0 Comments

No comments.

Add your comments...

  • User Name Required
  • Your Comment
  • Racist, abusive and off-topic comments may be removed by the moderator.
Send your storiesGet more from China.org.cnMobileRSSNewsletter
主站蜘蛛池模板: 磴口县| 道真| 乌恰县| 五峰| 肃宁县| 米林县| 马龙县| 邳州市| 汝州市| 华安县| 浑源县| 新丰县| 昌宁县| 遂宁市| 乳源| 河间市| 广德县| 临西县| 建德市| 香河县| 图木舒克市| 灌阳县| 林甸县| 康马县| 巨鹿县| 平塘县| 定兴县| 钟山县| 屏东县| 阳朔县| 湖南省| 镶黄旗| 五常市| 电白县| 镇雄县| 广昌县| 绥滨县| 绥中县| 长春市| 习水县| 河南省|