2022 interim results of the Company were generally in line with market consensus and our estimations. Total revenue of China Gold International (the "Company") increased 3.3% yoy to US$596.0 million, net profit attributable to shareholders decreased 2.2% yoy to US$153.5 million.
Total mining output of the Company in 1H2022 was generally in line with our estimation. China Gold International produced 43,279 tons of mined copper and 124,110 oz of mined gold in 1H2022, which represented 48.1% and 49.5%, respectively, of its annual plan. The production capacity of the Company remained unchanged and output fluctuation was mainly attributed to ore grade mined. The production of the Company was stable in 1H2022 and we expect the Company to fulfill its annual plan.
Production costs of mined gold and copper were in line with our estimation. The average production costs of mined gold from the CSH mine decreased 2.9% to US$1,489/oz, while average production costs of mined copper increased 13.8% to US$3.13/lb. The Company intentionally exploited low-grade ore in Jiama Mine which led to higher production costs of mined copper, but was generally in line with our estimations.
Maintain "Accumulate" investment rating for the Company, with TP of HK$34.30. Mining output of the Company is expected to be stable as both mines have reached full capacity. The profitability of the Company remains strong while metal prices have stayed high. We believe that gold price will regain uptrend momentum as adverse impact from the US Federal Reserve's interest rate hike is mitigated; maintain "Accumulate" rating.