The board of directors of Jinchuan Group International Resources Co. Ltd. announced that the Group is expected to record a consolidated profit attributable to the owners of the Company of approximately USD 8 million for the year ended 31 December 2016 as opposed to the consolidated loss attributable to the owners of the Company of USD 291.8 million for the year ended 31 December 2015. The turnaround to profit from a loss position is mainly due to: the recognition of an impairment reversal of USD 53.7 million where an impairment loss of USD 312.3 million was recorded in the year ended 31 December 2015; and the unit cost saving under strict effective cost control in respect of selling and distribution costs, administrative expenses as well as the cost of sales during the year ended 31 December 2016. The factors attributable to the abovementioned impairment reversal include the change in value of the principal parameters used in 2015 impairment assessment in the mining operations, mainly the higher price estimate for commodities, namely copper and cobalt; and the lower cost estimate resulted from the successful cost control measures achieved in 2016.