Shandong Gold's First-Half Profit Surges More Than Fivefold

By Theresa Tang

Aug. 24 (Bloomberg) -- Shandong Gold Mining Co., China's third-largest bullion producer, said first-half profit rose more than fivefold after it bought five gold mines and cut production costs.

Net income rose to 495.5 million yuan ($72.5 million), or 1.40 yuan, from 92.6 million yuan, or 0.58 yuan, a year earlier, the Jinan, Shandong province-based company said in a filing to Shanghai Stock Exchange today.

China's gold demand jumped 23 percent in 2007, as rising incomes spurred jewelry buying, making the nation the second- largest consumer. Gold has jumped 23 percent in the past 12 months and reached a record in March as a weaker dollar and higher oil prices spurred investors to seek alternative investments and to hedge inflation.

To contact the reporter on this story: Theresa Tang in Hong Kong at ttang3@bloomberg.net