The company disclosed 23 years of results. The company achieved operating income of 59.275 billion yuan, an increase of 17.83% year on year; realized net profit of 2,328 billion yuan, an increase of 86.57% year on year; realized net profit without deduction of 2,213 billion yuan, an increase of 69.47% year on year. Looking at a single quarter, the company achieved net profit of 983 million yuan in Q4, an increase of 111.11% over the previous month; net profit withheld from non-return to mother was 934 million yuan, an increase of 134.38% over the previous quarter.
The company's 23-year profit distribution plan is to distribute cash dividends of 1.4 yuan (tax included) for every 10 shares, with a total distribution of 626 million yuan, with a dividend distribution ratio of 33.59%.
The planned production in '24 is not less than 47 tons. In '23, the company produced 41.8 tons of mineral gold and 38.9 tons of equity. Major changes in domestic mines: 1) Yintai increased production by 2.5 tons; 2) the Dongfeng mining area of Linglong Gold Mine resumed production, increasing production by 0.8 tons; 3) optimization of production systems at Sanshandao Gold Mine, Xibao and Jinzhou Company, which increased production by 0.6 tons in total; 4) the total production of Jiaojia Gold Mine, Xincheng Gold Mine and Qingdao Gold Mine decreased by 1.3 tons. Major changes in foreign mines: an increase in the total amount of mining and stripping of Belladero gold ore, a decrease in difficult to select metallurgical ores, and an increase in production by 0.4 tons. In 2024, the company has set a gold production plan of not less than 47 tons.
Abundant reserves of resources. By the end of '23, the grade of the company's mineral resources was 1.72 g/ton, the amount of resources was 1431.30 tons, and the amount of equity resources was 1282.96 tons; the company's mineral reserves were 1.32 g/ton, the resource volume was 545.97 tons, and the reserves were 455.18 tons. In order to accelerate the integration of resources in the Sanshan Island mining area, the company plans to acquire exploration and prospecting rights for the Xiling Gold Mine held by Goldland Exploration. The prospecting rights have 592 tons of gold metal and an average grade of 4.02 g/ton. As of the disclosure date of the annual report in '23, the company is in the process of transferring prospecting rights for Xiling Gold Mine. In addition to Xiling Gold Mine, Gold Group, the controlling shareholder of the company, also holds 29 gold prospecting rights in China, with a total amount of 254 tons of gold resources; it holds 10 gold mining rights in China, with a total amount of 95 tons of gold resources.
Key projects continue to be built. The company successfully acquired the control of Yintai Gold in '23 and increased its shareholding to 28.89%; auctioned to obtain mining rights for the Daqiao Gold Mine in Gansu; promoted the mineral rights injection company in the Yanshan mining area in the Penglai region, which belongs to the Gold Group, and will carry out integrated development of existing mineral rights in Penglai Mining. Key projects under construction include: 1) the total investment in the Jiaojia mining area (integrated) gold resource development project is 8.273 billion yuan, and the project design gold metal production capacity is 18.85 tons/year; 2) the total investment amount of the Xincheng gold mine integrated resource development project is 3,784 billion yuan, with an average annual output of 7.77 tons of flotation gold concentrate; 3) the total investment in the Namutini gold mine project of the Catinona Company is 3.360 billion yuan, and the project design gold metal production capacity is 8.44 tons.
Profit forecasting and valuation. The company has significant resource advantages. We expect that in the next three years, as the company's domestic business flourishes and foreign business continues to advance, the company's mineral gold production may usher in a period of rapid growth, consolidating its leading position. We expect the company's 24-26 BPS to be 8.25, 9.41, and 10.99 yuan/share, respectively. Referring to the valuation level of comparable companies, a PB valuation of 3.4-3.5 times 2024 was given, corresponding to a reasonable value range of 28.05-28.87 yuan/share, giving a “superior to the market” rating.
Risk warning. Production expansion fell short of expectations; the Federal Reserve raised interest rates beyond expectations; raw material costs rose.