Wednesday, March 26, 2008

Western Mining profit up 12.15% on higher metal prices

China's second-largest lead concentrate producer Western Mining Co<601168> on Tuesday reported a 12.15% rise in net profit for last year thanks to higher metal prices.

Net profit in 2007 stood at RMB 1.73 billion and sales climbed 6.9% year-on-year to RMB 8.79 billion, according to a preliminary earnings statement it filed to the Shanghai Stock Exchange yesterday.

In contrast with the smelting business, operations in the mining sector contribute to more than 90% of Western Mining's profit, which helped the firm to avoid the huge volatility of nonferrous metal prices and led to the moderate earnings growth, analysts said.

Xining, Qinghai province-based Western Mining is also a zinc and copper miner. It has conducted a series of expansion activities, including an acquisition of 58% stake in Tibet's Yulong copper, China's biggest copper deposit and up to RMB 3 billion investment in smelters.

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