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(Kitco News) - China-focused miner China Gold International (TSX: CGG) reported yesterday that its Q1 2023 total gold production decreased by 10% to 52,827 ounces from 58,583 ounces for the same period in 2022.
The company's total copper production decreased by 9% to 44.1 million pounds (approximately 20,025 tonnes) from 48.3 million pounds (approximately 21,923 tonnes) for the same period in 2022.
According to a press release, the total production cost of gold of the CSH gold mine decreased by 13% to US$1,339 per ounce from US$1,537 and the cash production cost of gold decreased by 26% to US$712 per ounce from US$961 for the same period in 2022.
The total production cost of copper per pound after by-products of the Jiama mine decreased by 22% to US$1.67 from US$2.13 and cash production cost of copper per pound after by-product decreased by 34% to US$0.96 from US$1.46 for the same period in 2022.
China Gold said that its Q1 2023 revenue decreased by 17% to US$252.8 million from US$304.0 million for the same period in 2022, adding that mine operating earnings decreased by 3% to US$102.7 million from US$105.5 million for the same period in 2022.
The company also reported that its Q1 2023 net income increased by 10% to US$78.7 million from US$71.8 million for the same period in 2022.
Chairman and CEO Junhu Tong stated, "In the first quarter of 2023, the company maintained a stable performance, achieved positive results in cost control and materially improved operating profit margin. The company has been giving great attention and efforts on the overflow occurred at the tailings dam at the Jiama mine and is doing its best to conduct a comprehensive safety assessment and repair work and strive for an early resumption of production.
"At the CSH gold mine, while continuing to maintain a high production level, we are vigorously advancing the development of the deeper underground resources to create additional value and extend the mine life. We will continue to operate our business with a high degree of responsibility. Thanks to our shareholders and stakeholders for their understanding and support."
Importantly, China Gold said that due to the uncertainty of the date of resumption of production at the Jiama mine, the company has withdrawn its annual production guidance for 2023.
"Once the impact of tailings overflow on the operation can be more clearly evaluated, the company will re-issue its production guidance," it added.
China Gold International Resources is a gold and base metal mining company incorporated in BC, Canada and operates two mines, the CSH gold mine in Inner Mongolia, China and the Jiama copper-gold polymetallic mine in Tibet, China.
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