New Stock News | High-growth International Gold Mining Company Chifeng Jilong Gold Mining Launches IPO Sprint for A+H Listing, Multi-dimensional Advantages Boosting High Performance.

Today, one of the leading gold mining companies in the A-share market, and also China's largest privately-owned gold producer, Chifeng Jilong Gold Mining Co., Ltd. (referred to as "Chifeng Jilong Gold Mining", 600988.SH), officially launched its IPO and will debut on the Hong Kong Stock Exchange main board and meet with global investors on March 10, becoming the third "A+H" gold stock. In today's complex and ever-changing global economic landscape, gold, as a traditional safe-haven asset, its investment value is increasingly prominent, and the gold industry is attracting more market attention. Since entering 2025, the gold price, which had been maintaining high growth, continued to break new highs, and under the gold boom, Chifeng Jilong Gold Mining's new move to go public in Hong Kong has attracted close attention from the capital market. Chifeng Jilong Gold Mining has been listed on the A-share market through a backdoor listing as early as 2012, and is a "old player" in the domestic gold mining industry. Since its listing, the company has continuously expanded its business footprint and achieved rapid development with the help of the capital market, establishing a good reputation and brand image in the industry. This Hong Kong listing not only opens up a new financing path for Chifeng Jilong Gold Mining, improves capital operation efficiency, but also enhances its market influence, helping the company better integrate into the international market, attract more attention and cooperation from international investors, and further enhance its internationalization level. Abundant reserves, excellent gold ore quality Chifeng Jilong Gold Mining mainly engages in gold mining, selection, and sales business worldwide, and has grown into one of the few high-growth international gold mining companies in China. On the track of gold mining, the quantity of gold reserves undoubtedly becomes the core competitiveness of the company due to the unique value of this scarce resource. Chifeng Jilong Gold Mining has been continuously committed to expanding and enriching its gold reserves, laying a solid foundation for the company's future resource reserves and sustainable development. With its resource advantages, the company has maintained long-term competitiveness in the gold mining industry, continually consolidating and enhancing its market position. As of September 30, 2024, Chifeng Jilong Gold Mining owns and operates seven gold and multi-metal mines, located in China, Southeast Asia (Laos), and West Africa (Ghana), with abundant gold reserves reaching 12.5 million ounces. According to a Frost & Sullivan report, in terms of gold reserves, Chifeng Jilong Gold Mining's ranking among China National Gold Group Gold Jewelry manufacturers has risen to fifth. Not only does Chifeng Jilong Gold Mining have abundant gold reserves, but the overall ore grade of its gold mines is also high, with superior resource endowments. The gold resource grades of the Wulong, Jilong, and Huatai gold mines are all above 7 grams per ton, belonging to the current few high-grade ore deposits in China. The two overseas mines also have high development prospects. The Sabeau gold-copper mine is the largest non-ferrous metal mine in Laos, with gold ore resources reaching 15 million tons by the end of 2023; and the Wassa gold mine in Ghana is located in the famous Ashanti gold belt and has excellent exploration potential. The high-quality gold mines not only directly increase the value of ore extraction, enabling the company to have more exploration potential to support long-term mining and lay a solid foundation for future production growth. Furthermore, by reducing the amount of waste rock processed during mining, the company can lower mining costs. In addition, the company's gold mines are mainly located in key ore-forming belts, where the geological conditions are relatively mature and infrastructure is relatively complete, allowing the company to fully utilize local resource and facility advantages to further improve mining efficiency. Cost advantages highlighted, production achieves high growth, performance significantly up In addition to its resource advantages, Chifeng Jilong Gold Mining is also continuously implementing cost control measures to increase profit margins. The company has targeted cost reduction and efficiency improvement based on the actual situation of each mine. For domestic mines, the company not only optimizes production processes but also builds a data sharing platform to promote big data management, reducing production costs through potential big data exploration. For overseas mines, the company improves ore processing technology to increase ore recovery rates and enhances engineering efficiency through the introduction of third-party contractors. Through a series of measures, Chifeng Jilong Gold Mining has achieved significant results in cost control, and its operational efficiency surpasses the global average level of the gold industry. According to the prospectus, as of the end of 2023, the company's all-in sustaining cost for gold was only $1,179.1 per ounce, ranking in the top quartile of the global gold mining industry, significantly lower than the global average of $1,348.5 per ounce. In 2023 as a whole, the company's all-in sustaining cost for gold decreased by 12.0%, while the average increase for international gold producers during the same period was 7.2%, breaking the trend of rising costs globally. It is clear that Chifeng Jilong Gold Mining not only has resource advantages in terms of gold reserves and ore grades but also has strong technical and cost advantages, providing strong support for the company's significant production growth in recent years. According to Frost & Sullivan data, from 2021 to 2023, the company's gold production was 26.With 400,000 ounces, 436,000 ounces, and 461,000 ounces, China National Gold Group Gold Jewellery had a staggering annual compound growth rate of 33.1%, making it the gold producer with the highest growth rate during the same period, far surpassing the average growth rate of 16.4% for major listed gold producers in China.Data Source: Prospectus With multiple advantages, Chifeng Jilong Gold Mining has achieved a significant increase in production, and this growth momentum is also reflected in its financial performance. The prospectus shows that from 2021 to 2023, Chifeng Jilong Gold Mining achieved operating revenues of RMB 3.783 billion, RMB 6.267 billion, and RMB 7.221 billion, with a nearly doubled revenue growth in just three years, with an annualized growth rate of 38.2%. In the first three quarters of 2024, the company's revenue was RMB 6.223 billion, a 22.9% year-on-year increase from RMB 5.062 billion in the same period last year, showing a clear growth trend. In terms of profits, the company's net profit was RMB 613 million in 2021. Although in 2022, due to the increase in financial and administrative expenses caused by the acquisition of GSWL and the impact of high overseas tax rates, net profit was slightly reduced to RMB 494 million, but the company quickly increased to RMB 872 million with a significant increase in gold sales volume and prices, an annualized growth of nearly 20% over three years. In the first nine months of 2024, the company's net profit further increased to RMB 1.265 billion. Data Source: Prospectus Significant effectiveness in overseas layout, further opening up long-term growth space The strong growth momentum shown by Chifeng Jilong Gold Mining in terms of production, revenue, and profits is inseparable from its international strategy. Currently, the company is the most internationalized gold enterprise in its business. As mentioned earlier, high-quality mineral resources and the ability to consistently acquire these resources are one of the core competitive advantages of gold mining enterprises. With limited new discoveries of gold deposits domestically over the past few years, and domestically produced gold usually having relatively low grades, major gold producers in China have been expanding their gold mines overseas. In order to maintain the company's sustainable growth momentum, Chifeng Jilong Gold Mining has also set its sights on high-quality mineral resources overseas, successfully taking an internationalization path through continuous acquisitions. From a data perspective, in recent years, Chifeng Jilong Gold Mining has actively implemented a global strategy, continuously expanding its business in international markets. According to data from Frost & Sullivan, based on the contribution of overseas assets as of December 31, 2023, and the contribution of overseas revenue in 2023, Chifeng Jilong Gold Mining's overseas market share is the highest among gold companies in China. As of September 30, 2024, approximately 65.2% of the company's total assets came from overseas operations, and overseas revenue accounted for approximately 71.2% of total revenue. Data Source: Prospectus Chifeng Jilong Gold Mining's overseas business performance has been outstanding, with overseas assets and revenue contributions far exceeding its peers, and its overseas layout can be traced back to as early as 2018. In that year, Chifeng Jilong Gold Mining acquired Laos' largest mine, the Sepon Gold Copper Mine, causing quite a stir in the industry. The mine has both gold and copper production lines and was once considered as a local "cash cow," contributing over $1.4 billion in direct revenue to Laos in over a decade. To this day, the mine remains one of the company's important overseas assets. Currently, Chifeng Jilong Gold Mining is accelerating the construction of the open-pit and underground mining project at the Sepon Gold Copper Mine, and the prospectus forecasts that by 2025, the annual underground mining capacity of the mine will increase from the current 536,000 tons to 806,000 tons. Data Source: Prospectus Another overseas mine of Chifeng Jilong Gold Mining is the Wassa Open-pit Gold Mine in Ghana, acquired by the company in 2022. The gold mine is a large, young gold-producing mine along Ghana's largest gold belt, with large production and resource scale, high metallurgical comprehensive recovery rate, low operating costs, and still a good lifecycle and cash flow. It is estimated that by 2028, the Wassa Gold Mine will be developed into a large gold mine with an annual processing capacity of 3.3 million tons and an annual production of 353,000 ounces. Data Source: Prospectus After deeper analysis, it is clear that in the process of expanding overseas, Chifeng Jilong Gold Mining is not simply acquiring overseas assets, but has always focused on high-quality mineral resources overseas, and a series of overseas acquisitions have brought double value to the company. On the one hand, the company can acquire high-quality overseas mineral resource reserves, providing a strong guarantee for long-term development. Following the completion of two overseas gold mine acquisitions, the company's gold production entered a rapid growth phase, reaching 14.35 tons by 2023. On the other hand, it also helps the company learn and draw on international advanced mining management technology and experience, improving its management level and operational efficiency. Chifeng Jilong Gold Mining's overseas layout is not only limited to the production side but also reflects on the sales side. As of the first three quarters of 2024, the company's top four customers were located in Australia, South Africa, China, and Ghana, all being large precious metal refiners. Having large clients in different regions increases Chifeng Jilong Gold Mining's market diversification and risk resistance, and the customer attributes of large refiners bring strong certainty to the company's performance. With the development and sale of high-quality overseas mineral resources, the company's profitability will be significantly improved, and its international influence and corporate image will be enhanced. Industry in high prosperity, company leading in growth compared to peers In addition to continuously improving its own profitability, Chifeng Jilong Gold Mining is also in an industry that is experiencing unprecedented development opportunities. The gold industry in recent years has seen a unprecedented...The overall positive trend of the year is like fertile soil, providing an extremely favorable environment for the growth of Chifeng Jilong Gold Mining.The price of gold is affected by multiple factors such as real interest rates, the value of the US dollar, global geopolitical uncertainty, and inflation expectations. Against a backdrop of increasing global economic uncertainty, as a major safe-haven asset, the demand for gold remains strong and prices are generally trending upwards. In recent years, the trend of gold prices has highlighted its value as a safe-haven asset. In 2021, the global economy struggled to recover from the impact of the pandemic, causing fluctuations in the gold market; in 2022, the Russia-Ukraine conflict heightened risk aversion, leading to a sharp rise in gold prices; in 2023, geopolitical risks and high inflation in the US increased safe-haven demand, driving gold prices up further; in 2024, the global economy became increasingly complex and volatile, with the Federal Reserve lowering interest rates in September due to economic slowdown concerns, but the demand for gold remained high; in 2025, gold prices hit new highs due to adjustments in the global currency landscape, with US debt surpassing $38 trillion, putting pressure on the US dollar's credit rating. Countries such as China, India, and the Middle East accelerated their "de-dollarization" efforts, with gold becoming a strategic reserve asset. Additionally, the trade risks exacerbated by Trump 2.0 further pushed gold prices higher. The People's Bank of China has been increasing its gold holdings to hedge against international financial market risks and to meet the demands of RMB internationalization. In the future, amidst trade wars, small and medium-sized countries need to strengthen their foreign exchange reserves to hedge against currency devaluation risks, making gold an ideal choice. According to data from the World Gold Council, global central banks purchased a total of 1045 tons of gold in 2024, exceeding 1000 tons for the third consecutive year. In addition to institutions, many individual investors have also increased their gold investments under the influence of central bank decisions. It is foreseeable that in the current uncertain market environment, with rising risk aversion sentiment, gold has become a key tool for navigating through cycles, attracting widespread attention across the entire gold industry chain. However, different companies in different segments of the industry chain are not equally affected by the wave of rising gold prices, with gold mining enterprises in the upstream segment undoubtedly being the biggest beneficiaries. On one hand, the scarcity and non-renewability of gold resources held by gold mining companies result in a substantial increase in resource value during the rise in gold prices. On the other hand, the high concentration and relatively stable production costs in the upstream industry maintain high profit margins, demonstrating stronger performance elasticity for these enterprises. Chifeng Jilong Gold Mining, as a leader in the industry, fully benefits from the rise in gold prices and has become one of the most profitable companies. In January of this year, Chifeng Jilong Gold Mining released an earnings forecast, expecting to achieve a net profit attributable to shareholders of 1.73 billion to 1.8 billion yuan in 2024, a year-on-year increase of 115.2% to 123.9%. Although the annual report has not been released yet, gold mining companies have already issued earnings forecasts. Zijin Mining Group expects a year-on-year increase in net profit attributable to shareholders of approximately 51.5% in 2024; Shandong Gold Mining expects a year-on-year increase in net profit attributable to shareholders of 15.98% to 37.46%; Hunan Gold Corporation expects a year-on-year increase in net profit attributable to shareholders of 60% to 90%; Shanjin International Gold expects a net profit increase of 50.25% to 57.27% year-on-year. These data clearly indicate that the entire gold mining industry showed strong growth in 2024, with the performance of Chifeng Jilong Gold Mining particularly outstanding, demonstrating its growth potential. In conclusion, Hong Kong was one of the four major new stock markets in the world in 2024, with its listing activities and fundraising far exceeding those of 2023. Additionally, the subscription market for new stocks in Hong Kong is hot, and the "profit-making effect" of new stocks continues to rise. In order to attract more high-quality companies to list in Hong Kong, the Hong Kong Stock Exchange continuously initiates reforms. From a policy perspective, securities regulators in mainland China and Hong Kong encourage and support high-quality companies to have dual listings in both A shares and H shares, making it increasingly easier for A-share companies to list in Hong Kong. Chifeng Jilong Gold Mining's decision to list in Hong Kong at this time not only allows it to take advantage of the current high gold price cycle to raise funds and expand capacity but also helps the company advance its internationalization strategy, broaden financing channels, improve valuation levels, and attract more attention from global capital.