CHIFENG GOLD Delivers 56.50% Net-Profit Surge in 1H 2026, Bolstered by Strong Gold Prices and Overseas Operations

Bulletin Express
Sep 28

CHIFENG GOLD released its unaudited 1H 2026 results, reporting solid top-line growth and a sharp jump in profitability despite lower mined-gold output.

Key Financials • Revenue rose 33.11 % year on year to RMB 7.02 billion. • Net profit attributable to shareholders grew 56.50 % to RMB 1.73 billion. • Operating cash flow increased 16.60 % to RMB 1.88 billion. • Capital expenditure expanded 45.43 % to RMB 1.41 billion, reflecting project build-outs and technical upgrades. • Debt-to-asset ratio improved to 29.62 %, down 4.29 percentage points from end-2025.

Production and Costs • Self-mined gold output slipped 8.96 % to 6.15 tonnes as several mines underwent scheduled shaft and plant upgrades. • Copper cathode production nearly doubled to 5,399 tonnes, supporting revenue diversification. • Average operating cost for self-mined gold climbed 20.18 % year on year to RMB 383.44 per gram; all-in sustaining cost rose 35.46 % to RMB 481.45 per gram, driven by higher taxes, royalty rates and lower volumes.

Segment Performance • Mining operations delivered RMB 6.89 billion in revenue, accounting for 98.2 % of group turnover. • Overseas assets contributed 75.73 % of total revenue, underscoring the significance of the Sepon (Laos) and Wassa (Ghana) mines.

Resource and Project Updates • Sepon’s SND porphyry gold-copper project posted an updated JORC-compliant resource of 360 Mt grading 0.47 g/t Au and 0.22 % Cu, containing 170 t of gold and 810 kt of copper (260 t AuEq), following Phase 2 drilling. • Key growth capex focused on shaft upgrades at Jilong and Wulong, tailings expansion at Wulong, the Khanong copper project at Sepon, and mill expansion at Wassa.

Strategic Developments • Zijin Mining Group agreed in March 2026 to acquire 12.73 % of CHIFENG GOLD via A-share transfers and subscribe for 310.90 million new H shares, positioning Zijin as the largest shareholder upon completion. • International platform strengthened after the March 2025 Hong Kong listing; proceeds of HK$3.10 billion are earmarked for mine development, acquisitions and working capital.

Balance Sheet Highlights • Cash and bank balances stood at RMB 6.03 billion. • Interest-bearing bank debt declined to RMB 617 million, with 43 % at fixed rates. • Net assets attributable to shareholders reached RMB 14.33 billion, up 6.79 % from end-2025.

Outlook Management plans to accelerate technical upgrades, ramp-up new capacity, and maintain cost discipline while integrating Zijin’s expertise. Ongoing focus areas include advancing major projects, securing regulatory approvals, leveraging synergies with Zijin, and reinforcing ESG and safety standards.

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