| Increase in metal prices spur for Western Mining |
SHANGHAI, July 21 -- WESTERN Mining Co, which saw its share price almost treble on its trading debut last week, has reported profit increase of 55 percent for the first half of this year.
The performance has been fueled by rising prices in metal concentrates.
Net income of the nation's leading metal producer climbed to 858.5 million yuan (US$113.41 million), or 0.36 yuan per share, up from 553.4 million yuan for the first six months year on year, the company said in a statement filed with the Shanghai Stock Exchange yesterday.
The brisk profit followed a 30 percent jump in sales revenue to 3.64 billion yuan during the same period.
Xining, Qinghai Province-based Western Mining is China's second-largest maker of lead and the fourth-biggest producer of zinc. It also mines other metals like copper.
Shares of Western Mining gained 4.83 percent to 33.88 yuan yesterday.
"The company has sustainable growth in the future for large reservation of those non-renewable resources," said Zhang Yaliang, an analyst from Guangdong Foretech Investment Consultants Co Ltd.
"Its diversified product line-up will also help to hedge risks brought about by global price fluctuations." Western Mining is the biggest mining group in the western region, China's most productive area with the most reservations of lead and zinc.
It has been expanding capacity as metal prices keep pace with heated demand. It owns four mines in China and a 41 percent stake in the Yulong copper mine, which contains 6.5 million tons of the metal.
Western Mining raised 6.2 billion yuan in an initial public offering in Shanghai on July 12, with aims to fund mining and refinery capability as well as acquisitions. The share price nearly trebled to 32.84 yuan on debut.
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