Jinchuan (02362) sees significant drop in interim profit

    Jinchuan Group International Resources (02362) said it expects to record a significant decline in profit for the six months ended 30 June 2014 as compared with the consolidated profit attributable to the owners from continuing operations of HK$13.7 million recorded for the corresponding period in 2013.
  Following the completion of acquisition of Jin Rui Mining Investment Limited in November 2013, Jin Rui and its subsidiaries become members of the Group. Nonetheless, their contribution has not resulted in an overall increase in the consolidated profit for the six months ended 30 June 2014 because the fall in the selling price of copper products during the period under review has reduced the profit contribution of the Jin Rui Group, as well as the decrease in the revenue derived by the Group from the trading of mineral and metal products; the new recognition of an amortisation of mineral rights and other intangible assets relating to the acquisition of Jin Rui; and the recognition of an exchange loss upon translation or conversion of the Group's monetary assets (mainly cash and receivables) denominated in Renminbi into United States dollars arising from sale of mineral and metal products.
  Its interim results announcement is expected to be released in mid-August.