Chinese Lingbao Reports 11% Drop In Gold Bullion Output
China’s state-owned Lingbao Gold Company said in its annual report that gold bullion production at a smelting plant in central Henan province was down 10.8% in 2016.
The yearly gold bullion output was at 600,786 ounces, according to the company, while silver production increased 13.2% year-on-year, rising to 1,440,024 ounces.
Copper output fell 5.5% to 12,666 mt, and sulfuric acid fell 11.2% to 172,204 mt.
Overall, Lingbao recorded a net loss of $13.4 million in 2016, which was actually an improvement from a net loss of $72.9 million posted in 2015. The positive development was largely due to a 12.6% increase in gold prices over the past year, the company said.
No expectations for 2017 were listed in the report, although Lingbao said it is currently expanding mining operations to minimize “risks” associated with buying raw materials from third parties.
The Chinese company owns 49 mining and exploration rights across China and is primarily focused on mining, smelting and refining of gold, silver, copper, and sulfuric acid.
Lingbao has been listed on the Hong Kong Stock Exchange since 2006.