Analysis of Shandong Gold's Ore Grade Decline and Cost Increase: Group Strategy and Short-Term Impact Assessment

Shandong Gold’s recent decline in selected ore grade and cost increase may be due to group-level strategic management. After consolidating the high-grade Shandong Gold International, the group adjusted down the selected ore grade of the core listed company to maintain the stability of the overall grade. This move may be related to the assessment mechanism of state-owned enterprises, aiming to smooth key production indicators [6].

According to public data, Shandong Gold’s 2024 operating revenue was 82.518 billion yuan, a year-on-year increase of 39.21%; the net profit attributable to shareholders of the listed company was 2.952 billion yuan, a year-on-year increase of 26.80% [5]. The Q3 2025 data shows that the total cost was 4.610 billion yuan, with a cash cost of 1.4041 yuan per gram, but there is a lack of detailed comparative data on the trend of selected ore grade changes and the magnitude of cost increases [Analyst Report].

Shandong Gold International, formerly known as Yintai Gold, became the international business platform of Shandong Gold Group after restructuring and consolidation in 2024, integrating domestic and foreign gold assets to optimize the overall grade structure [3]. The impact of the grade decline is expected to be temporary; the grade of Shandong Gold itself is expected to recover after the commissioning of future new projects, and its cost control capability needs to be continuously monitored [6]