Zijin Mining Group Q1 net profit increased 20.56%

Apr.23 MetalBiz--It is reported that Zijin Mining Group made a net profit of 912mln yuan for the first quarter of 2009, raised 20.56% from a year earlier.

A generous growth in revenue and lower income tax rate are main reasons for growth. Basic earnings per share rose 8.62% to 0.06 yuan, as well as the increase in share capital.

Operating revenues in the first three months stood at 4.95bln yuan, up 38.37% from the year-earlier period.

The company recorded in the report surging first-quarter sales, including a 37.64% growth in mineral gold sales and a 145.35% climb in smelting gold sales.

Although most product prices slumped, the prices of gold products, which contributed over 80% to the sales revenues only sank a little, thus avoiding great losses in the operating revenues.

In addition, the company was granted tax preference as a high-technology enterprise at the beginning of 2009. The income tax rate was reduced to 15% in the first quarter, in comparison with the 25% tax rate of the previous year.

The company expressed the net profit attributed to shareholders should increase 13.65%, saving the change in the income tax rate.