China's Zijin Mining set to miss 2019 output targets - presentation

China Gold International Resources

10/10/2019 13:51

TIANJIN, China Oct 10 (Reuters) - Zijin Mining Group Co Ltd
 601899.SS  2899.HK , one of China's biggest gold miners,
expects to miss production targets for gold, copper and zinc
this year although it increased output of all three metals, a
company presentation showed on Thursday.
    Zijin now expects to produce around 38.2 tonnes of gold in
2019, according to a presentation by executive director George
Fang at the China Mining conference in Tianjin. That is up 4.7%
from 36.5 tonnes last year but below this year's target of 40
tonnes set in March.  urn:newsml:reuters.com:*:nH9N21700W
    The Fujian-based company will also produce an estimated
342,000 tonnes of copper in 2019, up 37.3% year-on-year but
below its 350,000 tonne goal, according to Fang's presentation,
which did not give reasons for the revisions. 
    Zinc output is seen rising 34.2% to 373,000 tonnes, versus a
goal of 380,000 tonnes. Zijin set higher output targets
following its acquisition of Canada's Nevsun Resources and
Serbia's RTB Bor Group in 2018.
    The demand outlook for base metals has been clouded by trade
tensions between the U.S and China, which have also sent prices
for traditional safe-haven gold  XAU=  to six-year highs. 
    Cashing in on the higher prices for the precious metal, top
Chinese gold producer Shandong Gold  600547.SS  will lift its
output this year to 48-50 tonnes, director Wang Lijun said on
the sidelines of the conference. 
    The company produced 39.32 tonnes of gold last year,
according to its annual report and had set a target of no less
than 37.87 tonnes for this year.  urn:newsml:reuters.com:*:nH9N21D03H        
    China National Gold Group, the country's second-biggest gold
miner, expects its 2019 gold output to be "basically flat" from
a year earlier at more than 40 tonnes, its chairman Song Xin
said.
    All three executives declined to comment on reports of a
breakdown in talks over their separate attempts to acquire
Canadian miner Iamgold  IMG.TO .  urn:newsml:reuters.com:*:nL3N26U3KY        

 (Reporting by Tom Daly; Writing by Tom Daly and Min Zhang)
 ((min.zhang@thomsonreuters.com; (8610) 5669-2105;))