Shares of Hong Kong and Australian-listed Sino Gold Mining slid 1 per cent yesterday to HK$54.50 after the company announced that gold production at its Jinfeng mine in Guizhou province would fall below target due to power shortages related to winter storms. Trading in the company's shares was suspended in the morning session after the announcement but resumed in the afternoon. Sino Gold said severe snowstorms had affected the delivery of coal to power stations in southern China, resulting in restricted electricity supplies in Guizhou. It previously estimated that gold production in February would reach 12,700 ounces. It did not disclose projected figures for next month but said full power supply would not be available until February 21. However, a BOC International report on Monday revised the company's target share price up by 5 per cent to HK$76.28, citing higher gold prices and reduced production costs. Sino Gold said it expected to produce 170,000 to 190,000 ounces per year at an average cost of US$300 per ounce. BOCI said the company's target is in line with the bank's estimate of 180,000 ounces per year in 2008. Sino Gold aims to cut production costs to US$275 per ounce by the end of this year and to US$250 per ounce by next year. Investors expect a rise in production after the company's mine in Jilin's White Mountain area begins working by early next year. Annual production will be about 70,000 ounces at a cost of less than US$250 per ounce. Widespread snowstorms have also affected other mining and metals companies. The world's second-largest antimony producer, Hunan-based Chenzhou Mining Group, and the country's largest zinc smelter, Zhuzhou Smelter Group, announced yesterday that they would reduce production because of power shortages and blocked roads, according to Beijing Antaike Information Development. Chenzhou Mining said production was unlikely to resume before the Lunar New Year. The firm sold 9,659 tonnes of antimony in 2006. Beijing Antaike, a research affiliate of the China Nonferrous Metals Industry Association, told Bloomberg that Zhuzhou Smelter Group and other smelters in Hunan may had lost total output of 50,000 tonnes for zinc and lead. The mainland is projected to produce 15.3 million tonnes of aluminium this year, below earlier estimates of 15.6 million tonnes.