China Gold delivered its highest-ever quarterly net profit in Q2 2025, led by strong operational performance at both the CSH and Jiama mine, coupled with favourable market conditions. Q2 2025 net profit jumped to US$116 million, versus a net loss of US$4.8 million in Q2 2024. Total Cu production jumped more than 2x to 39.7 Mlbs versus 18.6 Mlbs in Q2 2024. Total gold production increased by 38% YOY to 43,403 oz.
Looking ahead, the open-pit operations at CSH mine are nearing the end of their mine life. The management has shifted focus toward developing underground resources to prolong the mine’s operational life. While this implies a decline in output from CSH, the Jiama mine remains the key driver of production growth going forward, especially with the commissioning of Phase III tailing pond by H1 2027. We remain upbeat on the gold and copper pricing trends, which should support profitability for the remainder of the fiscal year. Furthermore, the improvement in operating cash flow in H1 signals an enhanced ability to repay debt, manage capital expenditures, and pursue future growth opportunities.
Investment Highlights
China Gold International Resources Corp Ltd (TSX: CGG) (“CGG”, or “Company”) is a polymetallic miner with two producing assets in the Greater China Region — the CSH mine and the Jiama mine. The Company has delivered a return of 1,438% since our initiation on August 27, 2020.
All-time high quarterly profit: China Gold delivered its highest-ever quarterly net profit in Q2 2025, led by strong operational performance at both the CSH and Jiama mine, coupled with favourable market conditions. Q2 2025 net profit jumped to US$116 million, versus a net loss of US$4.8 million in Q2 2024. We remain upbeat on the gold and copper pricing trends, which should support profitability for the remainder of the fiscal year.
Raise our estimates: While management reiterated its 2025 guidance, we raise our production forecasts to the higher end of the guidance range. We increase our 2025 revenue and net profit estimates to US$1.0 billion and US$396.8 million, up from $978 million and $259.3 million, respectively. We also raise our 2026 revenue and net profit estimates to $1.25 billion and $493.8 million, from $1.0 billion and $298.3 million, respectively.
Reiterate BUY. With increasing gold and base metals prices, we expect the Company to post a significant jump in net profit for 2025. Furthermore, the improvement in operating cash flow in H1 signals an enhanced ability to repay debt, manage capital expenditures, and pursue future growth opportunities. We increase our fair value per share estimate to C$24.00 per share (earlier C$13.80). We change our rating to HOLD (earlier Buy) given limited upside potential.
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