HK Stock Market Move | WANGUO GOLD GP(03939) rose more than 10% in early trading. Institutions point out that the resources, reserves, and expansion path of Jinling gold mine are clear.

WANGUO GOLD GP (03939) surged more than 10% in early trading, with a cumulative increase of over 40% in the month. As of the time of writing, it rose by 10.58% to 11.18 Hong Kong dollars, with a trading volume of 3.86 billion Hong Kong dollars. On the news front, the international gold price stabilized above the $4000 level and continued to rise. On July 22, the international gold price surpassed $4100 per ounce. Analysis points out that market interest rate hike concerns began with the unexpected May non-farm payroll data and comments by Powell. However, the peak of inflation has passed, and the June non-farm data was lower than expected, leading to a slight relaxation in interest rate hike expectations. Meanwhile, the central bank's gold purchases have resumed, providing solid support for the gold price on the demand side. Sinolink pointed out that Wan Guo Gold's Ling Gold mine resources, reserves, and production expansion path are clear. The value elasticity mainly comes from two main lines. Firstly, a significant increase in resources and reserves support longer production planning cycles and valuation reassessment. Secondly, the expansion to tens of millions of tons opens up the processing capacity limit, and the follow-up feasibility study, construction plans, and expansion implementation pace will be important catalysts. Zijin related parties provide processing technical services for the project, Zijin Engineering undertakes feasibility studies and design for expansion, and Chinese mining engineering capabilities have formed a synergy in the project. The follow-up focus will be on the progress of the expansion plan, capital expenditure arrangements, and the pace of production capacity ramp-up.