When facing thousands of listed company announcements every day, which ones should you read? What are the key points to take away from the dozens or hundreds of pages of material announcements? Are the many professional terms in the announcements bullish or bearish? Check out Caixin's "Quick Read Announcement" column, where our reporters across the country will provide you with accurate, fast and professional interpretations on the night of the announcement.

Cailian News on November 7th (Reporter Liang Xiangcai): In less than a month, Zijin Mining Group (601899.SH) once again made a big move with a planned investment of over ten billion RMB to acquire a large overseas copper and gold mine.

Today, Zijin Mining Group announced that it plans to acquire 100% equity of Pan American Silver's La Arena gold mine and its Phase II project in Peru through its overseas wholly-owned subsidiary Jin Chang Mining.

The transaction consideration for this acquisition is 0.245 billion US dollars (approximately 1.739 billion RMB), to be paid in a lump sum at the time of delivery. In addition to the transaction consideration, both parties will settle separately the target company's cash, operation funds, etc., in accordance with the procedures and standards stipulated in the relevant agreement.

Furthermore, in the agreements related to the Phase II project, the company mentioned that after the commercial production of the La Arena Phase II project begins, Jin Chang Mining should pay Pan American Silver $50 million as contingent consideration, and Pan American Silver will retain 1.5% of the net gold refining income from La Arena Phase II.

Moreover, at the time of delivery, the company will separately sign a copper concentrate underwriting agreement with the target company, where Pan American Silver will have the right to choose to underwrite a portion of the copper concentrate produced in the La Arena Phase II project under general commercial terms, with an annual underwriting total not exceeding the production volume minus 60% sold or used in the Peruvian market as required by the Peruvian government. The sale of underwritten products is limited to the Canadian or U.S. end markets.

In terms of reserves, the announcement shows that according to the relevant technical report in February 2018, the total estimated + controlled ore volume for the La Arena Phase II project is 0.742 billion tons, with a gold ore grade of 0.24 g/ton and a gold content of 175.3 tons; the copper ore grade is 0.35%, with a copper content of 2.627 million tons. The inferred ore volume is 0.092 billion tons, with a gold ore grade of 0.23 g/ton and a gold content of 21.2 tons; the copper ore grade is 0.17%, with a copper content of 0.158 million tons.

According to the company's technical team's preliminary assessment, the La Arena Phase II project is planned to use open-pit mining and flotation technology. If designed with a processing scale of 33 million tons per year, with a construction period of 3 years and a production period of 19 years, it is expected to produce approximately 0.1 million tons of copper and about 3.8 tons of gold per year after reaching full production.

Financial Associated Press journalists reviewing the company's financial reports found that by the end of 2023, among the 11 major copper mining enterprises of Zijin Mining Group, only three produced more than 0.1 million tons of copper annually in terms of equity; the median equity gold production among the company's 15 major gold mines or enterprises is about 3.02 tons. This means that if this acquisition is completed and the La Arena Phase II project successfully reaches production, it will become another key mine for the company.

Less than a month ago, on October 9th, Zijin Mining Group announced that the company plans to invest 1 billion US dollars (approximately 7.071 billion RMB) to acquire 100% equity of the Akyem gold mine project held by Newmont.

It is reported that Akyem gold mine is one of the largest gold mines in Ghana, with a gold resource of 54.4 tons (excluding reserves) and an average grade of 3.36 grams per ton; reserves are about 34.6 tons with an average grade of 1.35 grams per ton. In addition, about 83 tons of gold are classified as underground resources reserves.