Jinduicheng Molybdenum has reported a 19.44% YoY drop in net profit to CNY 359 million in the first half of 2011. Sales revenue grew 21.31% YoY to CNY 3.686 billion, with earnings per share of CNY 0.11.

The company blamed the profit slump on higher labor costs, raw material prices and its income tax rate.

In the past accounting period, the Xi'an based company completed a mineral processing technology upgrade, increasing its daily mineral processing capacity from 30,000 tonnes to 40,000 tonnes. The company's Ruyang subsidiary also established a 5,000 tonne mineral processing capacity plant. The two projects raised Jinduicheng Molybdenum's mineral processing capacity by 47%.

In the first half of 2011, the average domestic price of refined molybdenum was CNY 2,182 per tonne. Molybdenum oxide was CNY 2,183 per tonne and ferromolybdenum was CNY 146,300 per tonne.

(Sourced from www.capitalvue.com)