August 26 -- Zhongjin Gold  posted a 63.35 percent year-on-year rise in first half 2011 net profit to 796 million yuan, while revenue was up 11.18 percent to 12.71 billion yuan, reports yicai.com, citing a company filing.

The gross margin of its mining business rose due to increased output and higher prices of both gold and copper.

Zhongjin Gold's competitor, Shandong Gold (600547), posted 13.8 percent and 83.44 percent year-on-year increases in first half revenue and net profit to 19.83 billion yuan and 1.05 billion yuan, respectively.

A number of financial institutions had estimated that international gold prices may top $2,000 per ounce.

The company expects further injections of mining assets from its parent in order to eliminate horizontal competition.

Gold output increased 0.15 tons year-on-year to 9.37 tons in the first half, while copper output increased 157 tons year-on-year to 8,812 tons. Production of refined gold rose 2.41 tons year-on-year to 58.69 tons, while smelted gold production increased 1,291 kilograms year-on-year to 8,701 kilograms in the first half.

The company won approval from the China Securities Regulatory Commission in July to acquire mining assets from its parent through a private placement.

Source:Capitalvue