New Stock News | Chifeng Jilong Gold Mining (600988.SH) submits application to Hong Kong Exchange, becoming China's largest private gold producer.

On August 30, Chifeng Jilong Gold Mining Co., Ltd. (600988.SH) submitted an application for listing to the Hong Kong Stock Exchange, with CITIC SEC as the exclusive sponsor. According to the prospectus, Chifeng Jilong Gold Mining is mainly engaged in the mining, selection, and sale of gold, and is the largest private gold producer in China. As of the last practicable date (August 20, 2024), Chifeng Jilong Gold Mining owns and operates 7 gold and multi-metal mines, located in China, Southeast Asia, West Africa, and other parts of the world. According to a report by Frost & Sullivan, Chifeng Jilong Gold Mining has the highest growth rate among domestic listed peers in the gold production industry, with significant growth potential. From 2021 to 2023, the company achieved a compound annual growth rate of 33.1% in gold production, far exceeding the average growth rate of 16.4% for major listed gold producers in China. In terms of gold reserves, Chifeng Jilong Gold Mining ranks fifth among gold producers in China, with gold reserves of 14.6 million ounces as of March 31, 2024, and ranks fifth in gold production among listed gold producers in China, with a gold production of 461.5 thousand ounces in 2023. Furthermore, according to the report by Frost & Sullivan, Chifeng Jilong Gold Mining's operational efficiency is significantly ahead of the average level in the global gold industry, and the company's all-in sustaining cost for gold is significantly lower than the global average. As of the end of the fiscal year ending December 31, 2023, Chifeng Jilong Gold Mining's all-in sustaining cost per ounce of gold was only $1179.1, ranking in the first quartile of global gold mining companies, while the global average at that time was approximately $1348.5 per ounce, 14.4% higher than Chifeng Jilong Gold Mining's all-in sustaining cost. In 2023, the company's all-in sustaining cost per ounce of gold decreased by 12.0%, breaking the global trend of rising costs, while the average all-in sustaining cost for international gold producers increased by 7.2% during the same period. Chifeng Jilong Gold Mining mainly conducts gold production business through six gold mines, including: Jilong Gold Mine, Wulong Gold Mine, Jintai Gold Mine, Huatai Gold Mine in China; Sepon Gold-Copper-Rare Earth Mine in Laos; and Wassa Gold Mine in Ghana. In addition, the company operates Hanfeng Polymetallic Mine in Jilin Province, China, producing zinc powder, lead powder, copper powder, and molybdenum powder. Moreover, Chifeng Jilong Gold Mining is developing rare earth resources in Laos. In addition to mining operations, the company is also engaged in resource recycling, recycling waste electrical and electronic products. As of the last practicable date, the company holds a total of 12 valid mining licenses in China, five valid exploration rights licenses in China, one valid mining license and one valid exploration rights license in Laos, three mining licenses and one exploration license in Ghana, and two exploration licenses are under renewal and conversion. Financially, as of the end of the three months ended March 31, 2021, 2022, 2023, and 2024, Chifeng Jilong Gold Mining achieved revenues of approximately RMB 3.783 billion, RMB 6.267 billion, RMB 7.221 billion, and RMB 1.854 billion respectively, with profits during the period of approximately RMB 613 million, RMB 494 million, RMB 872 million, and RMB 238 million respectively. According to Chifeng Jilong Gold Mining's prospectus, the revenues and costs generated by the company and its Chinese subsidiaries are denominated in RMB. The revenues generated by the company's overseas subsidiaries are denominated in US dollars, while their operating costs and expenses are denominated in multiple currencies, mainly in US dollars and in some cases in local currencies. Additionally, as the reporting currency of the group is RMB and the functional currency of its overseas subsidiaries is US dollars, the financial amounts of the overseas subsidiaries will be translated into RMB. Any fluctuations in exchange rates between US dollars, Laotian kip, Ghanaian cedi, and RMB will affect the company's financial performance.