Bulletin: Shandong Gold?s Solid Earnings To Enhance Financial Buffer

This report does not constitute a rating action. HONG KONG (S&P Global Ratings) Sept. 9, 2024--Shandong Gold Group Co. Ltd.'s (SDG) solid earnings over the next two years will enhance its financial buffer. A steady rise in output of mined gold and robust gold prices will underpin the China-based company's revenue growth and healthy operating cash flow. However, SDG's ambitious growth plan will entail significant capital expenditure (capex) and continue to push up its debt during the period. SDG will likely continue its output expansion over the next two years. We expect the company's mined gold output to increase to 50 tons-60 tons in 2024-2025, up from 49 tons in 2023. This will be primarily due to additional contributions from

...September 9, 2024 This report does not constitute a rating action. HONG KONG (S&P Global Ratings) Sept. 9, 2024--Shandong Gold Group Co. Ltd.'s (SDG) solid earnings over the next two years will enhance its financial buffer. A steady rise in output of mined gold and robust gold prices will underpin the China-based company's revenue growth and healthy operating cash flow. However, SDG's ambitious growth plan will entail significant capital expenditure (capex) and continue to push up its debt during the period. SDG will likely continue its output expansion over the next two years. We expect the company's mined gold output to increase to 50 tons-60 tons in 2024-2025, up from 49 tons in 2023. This will be primarily due to additional contributions from Shanjin International Gold Co. Ltd. (acquired last year) and the ramp up of the Focus mine in Australia and Cardinal mine in Ghana. The rising output amid strong gold prices will support SDG's earnings over the next two years. We forecast the company's...

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