China Gold International Resources (CGG) AI Stock Analysis

• Market Cap: C$8.73B
• Dividend Yield: 0.24%
• Average Volume (3M): 56.15K
• Price to Earnings (P/E): 21.1
• Beta (1Y): 0.82
• Revenue Growth: 133.76%
• EPS Growth: N/A
• Country: CA
• Employees: 2,121
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Other Precious Metals
• EPS (TTM): 0.49
• Shares Outstanding: 396,413,760
• 10 Day Avg. Volume: 61,930
• 30 Day Avg. Volume: 56,149
• PEG Ratio: -0.09
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 2.71
• P/FCF Ratio: 9.23
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$32.91
• Price Target Upside: 11.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: C$33.00 ▲(12.02% Upside)

China Gold International Resources has a strong financial performance and positive corporate developments, which are the primary drivers of its stock score. The technical analysis supports a bullish trend, though caution is advised due to potential overbought conditions. Valuation concerns slightly offset these positives, suggesting the stock may be overvalued.

Positive Factors

Revenue Growth

Sustained revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.

Cash Flow Generation

Strong cash flow growth enhances financial flexibility, enabling reinvestment in operations and strategic initiatives, bolstering future growth.

Profitability

Improved profitability margins reflect operational efficiency and cost management, ensuring sustainable earnings and competitive advantage.

Negative Factors

Valuation Concerns

High valuation ratios may limit stock appreciation potential and increase risk of correction, impacting investor sentiment and capital allocation.

Dividend Yield

A low dividend yield can deter income-seeking investors, potentially affecting stock demand and limiting shareholder returns over time.

Market Conditions

Dependence on volatile commodity prices introduces earnings uncertainty, affecting financial stability and planning in the long term.

China Gold International Resources Business Overview & Revenue Model

Company Description

China Gold International Resources Corp. Ltd., a gold and base metal mining company, acquires, explores for, develops, and mines mineral properties in the People's Republic of China. It primarily holds 96.5% interest in the Chang Shan Hao gold mine covering an area of 36 square kilometers in the western part of Inner Mongolia, northern China; and 100% interest in the Jiama copper-gold polymetallic mine that hosts copper, gold, molybdenum, silver, lead, and zinc metals located in Metrokongka County, Tibet. The company was formerly known as Jinshan Gold Mines Inc. China Gold International Resources Corp. Ltd. was incorporated in 2000 and is headquartered in Vancouver, Canada.

How the Company Makes Money

China Gold International Resources generates revenue primarily through the sale of gold and copper produced from its mining operations. The company has established key revenue streams from its flagship mining projects, which include the CSH Gold Mine in Inner Mongolia and the Jiama Copper-Gold Mine in Tibet. The revenue model is driven by the extraction and processing of ore, which is then sold to various customers, including industrial buyers and wholesalers. Additionally, fluctuations in global commodity prices for gold and copper can significantly impact the company's earnings. Strategic partnerships with local and international entities also play a role in enhancing operational efficiency and expanding market reach, contributing to the overall revenue growth.

China Gold International Resources Financial Statement Overview

Summary

China Gold International Resources demonstrates strong financial health with impressive growth in revenue and profitability. The income statement shows significant improvement in profit margins and revenue growth. The balance sheet is stable with prudent leverage, and cash flow generation is solid, supporting future growth and stability.

Income Statement

The income statement shows strong performance with a significant improvement in gross profit margin (38.95%) and net profit margin (26.11%) in TTM, indicating enhanced profitability. Revenue growth rate of 16.44% in TTM reflects robust growth compared to previous years. EBIT and EBITDA margins are also healthy at 32.73% and 35.86%, respectively, showcasing operational efficiency.

Balance Sheet

The balance sheet is stable with a manageable debt-to-equity ratio of 0.36 in TTM, indicating prudent leverage. Return on equity (ROE) has improved to 16.16%, reflecting effective use of equity to generate profits. The equity ratio is solid, suggesting a strong equity base relative to total assets.

Cash Flow

Cash flow analysis reveals a positive trajectory with a 24.70% growth in free cash flow in TTM, indicating strong cash generation. The operating cash flow to net income ratio is 1.10, suggesting efficient conversion of income into cash. Free cash flow to net income ratio of 0.83 highlights good cash profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.13B	756.65M	459.43M	1.10B	1.14B	864.03M
Gross Profit	439.57M	179.95M	72.71M	387.01M	399.47M	205.70M
EBITDA	404.68M	258.77M	124.19M	508.69M	518.08M	352.22M
Net Income	294.70M	62.73M	-25.50M	222.74M	267.36M	111.96M
Balance Sheet
Total Assets	3.11B	2.94B	2.83B	3.19B	3.26B	3.32B
Cash, Cash Equivalents and Short-Term Investments	511.75M	302.02M	97.24M	428.45M	208.13M	243.29M
Total Debt	713.09M	743.10M	767.95M	835.09M	973.27M	1.23B
Total Liabilities	1.13B	1.15B	1.11B	1.29B	1.42B	1.73B
Stockholders Equity	1.96B	1.76B	1.71B	1.88B	1.82B	1.58B
Cash Flow
Free Cash Flow	460.86M	222.26M	-59.90M	401.70M	263.20M	109.07M
Operating Cash Flow	553.65M	306.90M	1.57M	447.28M	417.27M	260.46M
Investing Cash Flow	-276.54M	-204.88M	-121.30M	-33.34M	-150.71M	-133.21M
Financing Cash Flow	-127.72M	-16.17M	-205.23M	-185.31M	-307.54M	-71.64M

China Gold International Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 29.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CGG, the sentiment is Positive. The current price of 29.46 is above the 20-day moving average (MA) of 26.28, above the 50-day MA of 24.99, and above the 200-day MA of 15.57, indicating a bullish trend. The MACD of 1.51 indicates Negative momentum. The RSI at 68.11 is Neutral, neither overbought nor oversold. The STOCH value of 85.01 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CGG.

China Gold International Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TFPM	78 Outperform	C$7.93B	32.09	11.27%	0.70%	43.27%	―
CGG	76 Outperform	C$8.73B	21.15	21.28%	0.24%	133.76%	―
ARIS	69 Neutral	C$2.73B	37.71	5.13%	―	62.92%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
EDR	58 Neutral	$3.53B	―	-20.46%	―	50.37%	-191.85%
GMIN	53 Neutral	$7.61B	25.76	17.77%	―	1069.24%	4643.80%
SLS	31 Underperform	$1.46B	-15.43	―	―	―	7.47%

China Gold International Resources Corporate Events

China Gold International Clarifies Market Activity Amid Share Price Surge

China Gold International Resources has issued a clarification regarding recent market activity, stating that it is unaware of any undisclosed information that would explain the recent rise in its share price and trading volume. This announcement comes at the request of the Canadian Investment Regulatory Organization, indicating a proactive approach to maintain transparency and investor confidence. The company’s operations and strategic focus remain unchanged, with ongoing efforts to expand production and resource development.

China Gold International Joins Hang Sang China-Affiliated Index

China Gold International Resources has been selected to join the Hang Sang China-Affiliated Corporations Index, a benchmark for ‘Red Chips’ that includes the 25 largest and most liquid Mainland-controlled companies listed in Hong Kong. This inclusion is expected to boost the company’s visibility among institutional investors, attracting passive and index-tracking funds, thereby enhancing market participation and awareness. The company’s leadership views this as a recognition of their competitiveness and a vote of confidence in their future growth prospects, which could lead to a broader investor base.