① Hunan Gold plans to achieve consolidated revenue of 25.3 billion yuan this year, with gold production of 49.7 tons, 36,000 tons of antimony products, and 1,800 tons of tungsten products. ② Hunan Gold's main business is gold and antimony, which focus on resources. Hunan Baiyin is building an integrated entire industrial chain.
Financial Services Association, April 15 (Reporter Huang Lu) Wang Xuanxiang, who is also the chairman of Hunan Nonferrous Metals and Hunan Gold (002155.SZ), became the speaker of “real money” after Hunan Nonferrous Metals Investment Group (hereinafter referred to as Hunan Nonferrous Metals) strategically chose to actually control the precious banking industry, thereby recovering it from the edge of delisting and changing its name to Hunan Baiyin (002716.SZ).
At a time when the price of gold continues to rise, how will Wang Xuanxiang “own money and run the bank”? During Hunan Gold's annual shareholders' meeting this afternoon, Wang Xuanxiang said that while increasing prospecting efforts in existing mining areas, Hunan Gold will actively pay attention to mergers and acquisitions; Hunan Baiyin will build an integrated entire industry chain.
“There has been a slight correction in the past two days. The price of gold at 560 (yuan/gram) is already very high, and we are not greedy.” Wang Xuanxiang said that the price of gold is already very high; the rise is fueled by external circumstances, and it is rare for gold and the US dollar to rise at the same time.
Wang Wensong, director of the company, further added, “It is normal for gold prices to rise and fall, and it is difficult to predict them. Our business does not focus on the rise and fall of gold prices. Of course, the rise in gold prices is definitely a good thing for the company.”
Financial reports show that in 2023, Hunan Gold achieved operating income of 23.303 billion yuan, a year-on-year increase of 10.75%; net profit of 489 million yuan, an increase of 11.2% year-on-year. This year's Q1 net profit increased by 40%-60% year-on-year, mainly due to rising product prices.
In the first quarter of this year, especially since the beginning of March, international gold prices continued to rise and hit record highs. The closing price of Au9999 on the Shanghai Gold Exchange at the end of the year was 479.59 yuan/gram, up 16.69% from the opening price in early 2023. Hunan Gold produced about 3.95 tons of its own gold in 2023, a year-on-year decrease of 14.38%.
Wang Xuanxiang also said, “The company's production is not because (gold) prices are very high, so we will go mining and abandon poor mines, because mine exploration will always be a continuous conflict we have to face, and we must abide by the mining rules.”
According to Hunan Gold's plan for the next three years, in 2025, the company plans to achieve the strategic goal of producing 10 tons of gold on its own and making a profit of 1 billion yuan.
The company's self-production target is to reach 10 tons. Currently, the annual output of about 4 tons is still far from this target. At today's shareholders' meeting, Wang Xuanxiang revealed that the company will continue to do a good job in prospecting and storage, strengthen resource economy construction, focus on the construction of the Jiaxin Project in Gansu, and promote the implementation of the Wangu Mining Area Cultivation Project in Pingjiang County in an integrated manner. This year, the company plans to achieve consolidated revenue of 25.3 billion yuan, gold production of 497 tons, 36,000 tons of antimony products, and 1,800 tons of tungsten products.
Currently, Hunan Gold has many mining resources such as Chenzhou Mining Headquarters, Gansu Chenzhou, Xinlong Mining Headquarters, Longhui Jinxing, Golden Cave Mining Headquarters, and Dawan Company. The company revealed that the controlling shareholder, Hunan Gold Group, has completed the transfer and change of all 7 mining rights and 7 prospecting rights acquired, and is currently carrying out related mineral rights integration, expansion and continuation.
It is worth mentioning that Wang Xuanxiang is also the chairman of Hunan Nonferrous Metals. This year, Hunan Nonferrous Metals has just become the largest shareholder of the Golden Silver Industry and changed its name to Hunan Baiyin. Hunan Gold Group is its third-largest shareholder. After changing ownership to Hunan Nonferrous, Hunan Baiyin gradually got rid of many historical problems left behind by the original controller Cao Yonggui's trading, got rid of the risk of delisting, and expanded its gold sales business. In March, Hunan Baiyin announced that it plans to sign a “Product Sales Cooperation Agreement” with Hunan Gold and Jewelry Industrial Co., Ltd., and the estimated transaction amount to be generated in 2024 is 1.5 billion yuan.
Regarding how Hunan Baiyin and Hunan Gold are misaligned and developed today, Wang Xuanxiang said during an exchange after the meeting, “Hunan Gold's main gold and antimony focus on resources. Hunan Baiyin is building an integrated entire industry chain, and its current (annual) production capacity of 100,000 tons may not be enough. The upper end is supported by resources, has its own smelting process in the middle, and there is an extension of the circular economy downstream, and even supported by new materials.”