- China Gold International Resources (TSX:CGG) has issued 2025 production guidance reflecting resumed activity at its Jiama copper and gold mine in Tibet
- The company’s return to profitability in Q3 2024 is a green flag for due diligence
- China Gold International is a gold and base metal explorer and producer incorporated in British Columbia operating two mines in China
- China Gold International stock has added 42.67 per cent year-over-year and 650.88 per cent since 2020
China Gold International Resources (TSX:CGG) has issued 2025 production guidance reflecting resumed activity at its Jiama copper and gold mine in Tibet, approximately 60 kilometers east of Lhasa City.
Jiama, unaffected by Tibet’s earthquake on January 7, 2025, suffered an overflow event at its Guolanggou tailings pond in March 2023, causing production to be suspended until December of that year. Operations reached capacity only in May 2024.
Company-wide production predictably slumped from 238,836 ounces of gold in 2022 to 147,963 ounces in 2023, and from 187.4 million pounds of copper to 44.2 million pounds, respectively.
Preliminary results in 2024 indicate a meaningful upswing, with Jiama expected to generate 102 million pounds of copper and 53,370 ounces of gold. The company’s other key asset, the CSH mine, is expected to produce 107,737 ounces of gold during the year.
Management sees this return to strength continuing in 2025, as evidenced by:
- Copper production between 139 million pounds and 148 million pounds, and gold production between 69,124 ounces and 73,947 ounces at Jiama.
- Gold production between 77,162 ounces and 83,592 ounces at CSH.
Rebounding financial performance
China Gold International Resources turned unprofitable in 2023 because of Jiama’s suspension, posting a loss of US$25.5 million. This followed three years of positive net income, including US$111.96 million in 2020, US$267.36 million in 2021 and US$222.74 million in 2022.
The gold and copper miner’s return to profitability in Q3 2024 and extensive long-term development plan suggest that operations may be back to their money-making ways. Interested investors can continue their due diligence by reading the company’s audited 2024 financial statements, which are expected by the end of March 2025.
Leadership insights
“In 2024, the company resumed production at the Jiama mine and achieved profitability in the third quarter. In 2025, while maintaining steady operation, the company will implement the established development plan for the Jiama mine and accelerate the development of underground resources at the CSH mine, striving to deliver better performance and higher returns to its shareholders,” Chenguang Hou, China Gold International Resources’ chairman and chief executive officer, said in a statement.
About China Gold International Resources
China Gold International is a gold and base metal explorer and producer incorporated in British Columbia operating two mines in China.
China Gold International stock (TSX:CGG) last traded at C$8.56 per share. The stock has added 42.67 per cent year-over-year and 650.88 per cent since 2020.
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(Top photo of the Jiama mine: China Gold International Resources)
