Sichuan Gold: Net profit last year increased nearly 90% year-on-year, Q4 net profit declined quarter-on-quarter | Financial report analysis

Why did Sichuan Gold’s Q4 profits decline despite rising gold prices?

Cailian Press, April 2nd (Reporter Xiao Lianghua) Benefiting from the rise and repeated new highs in domestic and international gold prices, Sichuan Gold (001337.SZ) saw a significant increase in last year’s performance. However, in Q4 of last year, when the average gold price hit a new high for the year, the company’s net profit decreased quarter-over-quarter.

The company announced tonight that last year, it achieved operating revenue of 1.03B yuan, a year-on-year increase of 60.38%; net profit attributable to the listed company’s shareholders was 466 million yuan, up 87.69% year-on-year; the company produced 32,645.59 tons of gold concentrate and sold 28,518.54 tons of gold concentrate.

Looking at the average gold prices in each quarter, Q4 of last year had the highest average price of over $4,100 per ounce. In Q2 and Q3 of last year, the international gold prices were approximately $3,300 and $3,450 per ounce, respectively. However, in Q4 last year, the company only achieved a net profit of less than 100 million yuan, which was lower than Q3 and also somewhat below Q2 when gold prices were lower.

In terms of resource expansion, the company invested a total of 58.13 million yuan in exploration last year, including 28.42 million yuan of capitalized investment and 29.70 million yuan of expense investment, used for exploration at the Suoluo Gully Gold Mine, geological prospecting within the scope of the Suoluo-Wajin Gully Gold Mine exploration rights, and resource verification of the Suoluo Gully Gold Mine.

The company stated that, according to the “Resource Verification Report of the Suoluo Gully Gold Mine in Muli County, Sichuan Province,” submitted by the geological survey unit to the Sichuan Provincial Department of Natural Resources in December 2025, the remaining gold ore within the mining rights scope of the Suoluo Gully Gold Mine is 33.11M tons, with a metal content of 76,340 kilograms (the filing letter from the Sichuan Provincial Department of Natural Resources regarding the resource verification report has not yet been obtained). Additionally, within the mining rights scope of the Gold Ditch section of the Suoluo Gully Gold Mine, the remaining gold ore is 502k tons, with a metal content of 1,105 kg.

Sichuan Gold also announced that, in the case where the use and scale of raised funds for investment do not change, the project “Green Mine Construction of the Suoluo Gully Gold Mine” will be extended to reach the predetermined usable date to June 30, 2027. The company stated that this extension is a response to the latest national policies on green mine construction, aiming to optimize and upgrade the project’s technical plan.

(Reporter Xiao Lianghua, Cailian Press)