China's largest gold miner posts worsening H1 results

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Zijin Mining Group Co., China's largest gold producer by output, announced on Wednesday a 54 percent year-on-year slump in net profits in the first half of 2013, largely due to falling gold prices.

In a statement filed with the Shanghai Stock Exchange, the company said its gold output reached 1.79 million troy ounces, representing a year-on-year increase of 29.7 percent.

In the first half, the company's total output of copper stood at almost 159,000 tonnes, an increase of 87.4 percent from the same period last year.

Swelling output failed to buoy up profits due to a number of factors.

Prices of gold and copper have fallen sharply since the beginning of the year, which has dragged down the value of the company's inventories, analysts said.

Zijin's profitability was also affected by growing costs in the areas of raw materials, labor and environmental protection, analysts added.

Globally, gold prices have dropped nearly 30 percent from the peak of 1,700 U.S. dollars a troy ounce to some 1,200 U.S. dollars at the end of June.

As gold trends downward, the Fujian-based miner is not likely to post any solid full-year results, analysts said.

Zijin shares lost 1.56 percent to close at 2.53 yuan in Wednesday's trading.

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