Sino Gold Mining, a key overseas investor in the mainland's gold industry, announced yesterday it had obtained a 780 million yuan (HK$886 million), six-year loan from China Construction Bank Corp to refinance debt. The loan will be used to repay a US$30 million loan and a 371 million yuan loan, according to a company statement. The Hong Kong and Sydney-listed company reported that its net loss for the year to December widened to A$103.8 million (HK$520.6 million) from A$23.5 million in 2007 on pre-tax write-downs related to acquisitions. Revenue surged 514 per cent to A$206.1 million. No final dividend was declared. Sino Gold operates four projects on the mainland, including Jinfeng Gold Mine, White Mountain Gold Mine, the Eastern Dragon and the Beyinhar project. The company forecast combined gold production this year would be 210,000 to 230,000 ounces at an average cost of less than US$400 per ounce. Management said late last year that it aimed to increase annual output to 500,000 ounces within three years. 'Sino Gold started commercial production in January at White Mountain, its second mine after Jinfeng,' said analyst Belle Chan at BOC International. '[White Mountain] should become the new growth driver this year.' Jilin-based White Mountain, which is 95 per cent owned by Sino Gold, has ore reserves of 800,000 ounces at an average grade of 3.8 grams of gold per tonne. 'We have a favourable medium-term view of the gold price and note that Sino Gold is well placed to pursue a strategy of consolidation in the Chinese gold industry,' said analyst Ian Preston at Goldman Sachs. BOCI forecast the price of gold at US$855 per ounce this year and a long-term price of US$620 per ounce.