Event: the company publishes its third-quarter report for 2023. In the first three quarters, the company achieved revenue of 7.281 billion yuan, year-on-year-11.69%; net profit of 365 million yuan, + 162.45%; deduction of non-return net profit of 368 million yuan, + 168.38%; and earnings per share of 0.4660 yuan. The company's 2023Q3 realized revenue of 3.264 billion yuan in a single quarter, + 0.05% year-on-year, + 154.49% month-on-month; net profit of 108 million yuan, + 242.44%,-4.94%; and earnings per share of 0.1380 yuan.
Share buyback demonstrates the long-term confidence of management. On September 5, 2023, the company received a proposal from Mr. Niu Lei, chairman of the company, to buy back shares with its own funds (0.5-100 million yuan) through centralized bidding transactions. As of October 27, the company has bought back a total of 501000 shares through centralized bidding, accounting for 0.064% of the company's current total share capital. The highest purchase price is RMB9.83 per share and the lowest is RMB9.73 per share. The amount paid is RMB 4892419 (excluding stamp duty, transaction commission and other transaction fees). The repurchased shares are used in the company's equity incentives or employee stock ownership plans to demonstrate the long-term confidence of management.
Parjingo actively increased reserves and achieved remarkable results. According to the latest Annual MineralResource Statement issued by Yuxin Holdings, as of June 30, 2023, the Parjingo gold mine had 10.908 million tons of JORC-compliant ore, an increase of 3.025 million tons over the same period last year, and 202.1 million ounces of gold and metal, an increase of 315,000 ounces (9.80tons) over the same period last year.
A number of projects including vanadium mine, graphite mine and silica mine are progressing steadily. The vanadium mine project broke through and landed. In December 2022, the company obtained the mining right of Loufanggou Vanadium Mine Project in Shangnan County, Shaanxi Province; at the same time, the company held hands with Dalian Rongke, the "leading enterprise" in the field of all-vanadium flow energy storage battery, to carry out cooperation around the layout of the whole industry chain of vanadium mineral resources. the mining project is expected to start construction in the second half of the year. Actively lay out African graphite mines. The company invested A $5 million in Teng Mining, a company listed on the Australian Stock Exchange, becoming its second-largest shareholder with a stake of 11.44 per cent. The Ankuabei graphite mine project held by Teng Mining is a large and super-large flake graphite ore, with graphite resources of about 46.1 million tons and recoverable reserves of 24.895 million tons in accordance with the JORC standard, with a planned annual processing capacity of more than 1 million tons and an annual output of more than 60,000 tons of natural flake graphite concentrate. The mineral processing construction of silica ore is ready to be put into production. In March, the company invested 25.75 million yuan to invest in Lighthouse Shuangli silica Mining Co., Ltd., with a shareholding ratio of 35%. In July, the foundation laying ceremony of the first phase of the concentrator was solemnly held, and the project construction officially entered the substantive stage. The design capacity of the first phase was 500,000 tons per year, and the construction period was about 8 months. It is expected that the main construction of the plant and equipment installation will be completed by the end of November 2023, and the design capacity will be officially reached in March 2024.
Profit forecast. Pajingo Gold Mine has reached full load production since delivery, in line with expectations.
Risk hints: gold prices are lower than expected; gold production is not as expected; exchange rate fluctuations