Zijin Gold International's stock plummeted 5.07% during intraday trading on Thursday, marking a significant decline despite the company reporting robust first-quarter financial results.
According to the company's recent disclosure, Q1 revenue surged approximately 137.77% year-over-year to USD 2.057 billion, with net profit attributable to shareholders skyrocketing roughly 385.48% to about USD 807 million. The strong performance was supported by increased gold production, including contributions from newly acquired mines in Ghana and Kazakhstan.
However, investor sentiment turned negative as the company's all-in sustaining cost (AISC) rose to USD 1,638 per ounce in Q1, up from USD 1,501 per ounce for the full prior year. This cost increase, primarily driven by higher royalty expenses linked to surging gold prices, prompted market reassessment of profit margins despite the impressive operational performance. Management indicated plans to accelerate technical upgrades and cost control measures in the second quarter while advancing the acquisition of Allied Gold Corporation.
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