Shandong Gold (600547): The performance of the highly elastic gold target will be fully released in the second half of the year

Shandong Gold (600547): The performance of the highly elastic gold target will be fully released in the second half of the year

Performance summary: The company achieved operating income of 311 in the first half of 2019.

9.5 billion, an annual increase of 19.

89%; net profit attributable to mother 6.

65 ppm, a ten-year increase of 8.

58%; realized non-net profit deduction6.

64 ppm, an increase of 9 in ten years.

03%.

The company produced gold in the first half of the year.

51 tons, an increase of 5 in ten years.

77%.

  Core assets: domestic mining gold16.

40 tons (+8.

7%), gold from foreign mines4.

11 tons (-4.

6%).

  Among them, the domestic mineral processing capacity reached 757 digits, an annual increase of 8.

74%, grade of raw ore is 2.

21g / t, basically the same as last year.

The amount of heap leaching in foreign mines is about 624, which is reduced by 8 every year.

98%, the grade of raw ore is 0.

75g / t, drop by 0 every year.

22 grams / ton.

Taken together, the grade of raw ore in the mine is 1.

55g / t, which decreases by 0 every year.

07g / t, a decrease of 4.

twenty three%.

  Argentina Belladro Gold Mine: According to Barrick Gold’s Q2 report, gold was produced in the first half of this year4.

11 tons (50% equity), a decrease of 4 per year.

6%, and the unit production cost has increased by about 7% compared to the level of 2018 each year.

It is estimated that in 2019 the Beradero gold mine will have 23-25 trillion gold (50% equity), which is equivalent to 6 tons.

52-7.

09 tons, a reduction of 0 every year.

79-1.

36 tons, the reduction in mining crops was mainly due to extra grades.

The average annual production cost is estimated to be $ 1250-1350 per ounce. If the dollar exchange rate is converted to 7 to measure, the unit cost is 308.

6-333.

3 yuan / gram, a significant improvement.

  Performance interpretation: The company achieved net profit attributable to mothers in the first half of this year.65 ppm, a ten-year increase of 8.

58%, mainly benefited from the increase in mineral gold production.

In terms of price, despite the excellent performance of gold this year, in fact, the start of this round of market started at the 天津夜网 end of May, so the company fully enjoyed the rich results brought by the growth of gold price in the first half of the year.

In the first half of this year, the average price of Comex gold was 1309.

2 USD / JPY, excluding 0 for the time being.

77%; Shanghai gold average price 289.

6 yuan / gram, up 5 before.

61%.

It is expected that in the second half of the year, the price of gold will continue to be high and the company’s net profit will be fully released.

  The global interest rate cut cycle has been started to avoid dangerous sentiment which will further push up the price of precious metals.

Since the beginning of the year, 28 countries or regions have chosen to cut interest rates to varying degrees. Among them, the Federal Reserve will continue to cut interest rates at the September interest rate meeting after the interest rate cut on July 31.

In addition, the escalation of Sino-U.S. Relations after repeated iterations has also boosted the market’s risk aversion and further pushed up the price of gold.

  Earnings forecasts and investment advice.

It is expected that EPS for 2019-2021 will be 0.

61 yuan, 0.

91 yuan, 1.

10 yuan, the corresponding PE is 66 times, 44 times and 37 times.

Considering that the global interest rate cut cycle has just begun, the Golden Bull Market has just started. As the largest domestic gold mining company, the company has high flexibility for the performance of gold price growth companies and maintains a “Buy” rating.

  Risk Warning: The output of mineral gold may be less than expected; the US economy has exceeded expectations and caused the price of gold to fall.