HK Stock Market Move | Wanguo Gold GP (03939) rises more than 10% to hit a new high, Purple Gold helps Shandong Jinling Mining expand, and the company's gold production is expected to grow rapidly.

WANGUO GOLD GP(03939) rose over 10% in the afternoon, reaching a high of HK$29.75, hitting a new high since listing. As of the time of writing, it rose by 10.43% to HK$29.65, with a turnover of HK$1.87 billion. On the news side, WANGUO GOLD GP announced in May that its subsidiary, Shandong Jinling Mining, signed a mineral processing technology service contract with Zijin Mining, and also signed a feasibility study contract with Zijin Engineering for expansion. The company stated that with the soaring price of gold, accelerating production is in the best interest. It is reported that both Zijin Mining and Zijin Engineering are controlled entities of Zijin Mining Group. Minsheng Securities pointed out that Zijin Mining Group holds a 17.57% stake in WANGUO GOLD GP. This related transaction fully reflects Zijin Mining Group's further empowerment of the Jinling gold mine for future development, and will assist the company in expanding a 10 million ton/year project. With the empowerment and support from Zijin, the development speed and efficiency of the Jinling gold mine are expected to further increase. After the expansion is completed, the company's gold production is expected to grow rapidly.