Oct. 31 (NBD) -- Shandong Gold Mining Co., Ltd (Shandong Gold) Tuesday disclosed that its operating revenues of the past three quarters this year reached 38.504 billion yuan (5.8 billion U.S. dollars). Net income available to shareholders stood at 895 million yuan (134.8 million U.S. dollars) with a year-on-year increase of 22.46%.

As of the end of the third quarter, the total assets possessed by Shandong Gold have amounted to 42.196 billion yuan (6.4 billion U.S. dollars), an increase of 48.8% compared with that at the end of last year.

Though Shandong Gold didn't explain in detail the reason to its excellent performance, yet the factor of the overseas acquisition can't be ignored.  

NBD noticed that Barrick, the world's largest gold producer, announced on April 6 that it has struck a strategic cooperation agreement with Shandong Gold Group. According to Barrick's announcement, as a first step into the new partnership, Shandong Gold Mining Co., Ltd, the listed company of Shandong Gold Group, will acquire 50 percent of Barrick’s Veladero mine in San Juan province, Argentina, for 960 million U.S. dollars.  

This acquisition will be a landmark for Shandong Gold Group on its way to the global market, said Liu Xinwei, an analyst with SCI99.com.

In addition, Shandong Gold also announced that the company and it's subsidiaries are to buy the exploring rights of Xincheng, Linglong and Yinan gold mines from Shandong Gold Group for a total of 654.88 million yuan (98.6 million U.S. dollars). 

Some security analysts contend that it's reasonable to buy exploring rights of gold mines at such timing. People have different ideas on how the gold price will go, fearing that some gold producers might be too optimistic.

Email: tanyuhan@nbd.com.cn