...April 14, 2021 HONG KONG (S&P Global Ratings) April 14, 2021--S&P Global Ratings today said that Shandong Gold Group Co. Ltd. (SDG; ###-/Stable/--) has sufficient rating buffer to withstand production halts following mine safety inspections in the first quarter of 2021. Zhaojin Mining Industry Co. Ltd. (##+/Stable/--) is also well placed to weather any potential production stoppages. We believe favorable gold prices should support the China-based companies' credit strength. According to our estimates, SDG's mined gold output will drop to 41-42 tons this year amid production disruptions, from 44-46 tons in 2020. Output should ramp up gradually and reach full capacity from the second quarter as the company has resumed partial production. Explorations on existing mines and more importantly, the newly acquired Xinjiang-based Hengxing Gold Holding Co. Ltd., should also help make up for some output loss. We expect SDG's output to recover to 48-49 tons in 2022. The company's Ghana-focused Cardinal...
