Apr

22

Jiangxi Copper Q1 net profit more than quadruples..

April 22, 2010 | Leave a Comment

Jiangxi Copper, China’s largest integrated copper producer, reported a more than quadrupling of first-quarter net profit as copper and sulphuric acid prices rebounded.
Jiangxi Copper, which operates China’s largest open pit and underground copper mines as well as the country’s largest copper refinery, said in a statement on Wednesday the profit increase was due to a rise in copper prices compared with a year ago.
Cooper prices have rebounded after a correction in January and sustained high prices should boost confidence in the group, said Catherine Wang, analyst at Citigroup, in a note.
Wang also expects higher copper prices as the spring peak season approaches.

Shanghai copper prices are up 1.2 percent this year, compared with a 48 percent rise in the second half of 2009 and a 150 percent jump at the end of 2009, partly due to restocking and investors’ bets on a strong economic recovery.
Jiangxi Copper’s net profit for the first quarter ended March 31 jumped to 697.5 million yuan ($102 million) from 151.8 million last year. An analyst at a major Western investment bank had predicted net profit of 960 million yuan.
The group’s Hong Kong-listed shares have fallen 4.6 percent this year, more than a 1.7 percent loss on the broader Hong Kong share market .HSI.
China is the world’s largest consumer of copper, accounting for about 25 percent of global demand. It produces some 20 percent of global output, ranking second behind Chile.


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