Zhaojin Mining posts 11% rise in profit

Zhaojin Mining Industry Co<1818> on Monday posted 2007 profit rose 11% year-on-year to RMB 388.4 million(US$55 million) thanks to the soaring gold price.

Zhaojin Mining, located in Zhaoyuan, east China's Shandong Province saw its sales jumped 30% from a year earlier to RMB 1.51 billion last year, according to its statement filed to the Hong Kong Stock Exchange.

Gold output of the company stood at 622,567 ounces in 2007, up 24% from the previous year and the average price of gold sold was about US$689.61 an ounce, 9.6% higher than that of 2006, the statement said.

The gold miner ascribed the remarkable growth to the rising demand for the metal as investors are seeking alternatives to evade risks from the uneven stock market and rising inflation in China.

Shares of the Hong Kong-listed firm dropped 2.76% to HK$30 on Wednesday.