Jinwu Financial News | Minsheng Securities released a Research Report indicating that the Universal Gold Group (03939) has published an update report on the resources and reserves of the Jinling Gold Mine. As of July 31, 2024, the gold resource of the Jinling Gold Mine has increased from 103 tons to 227 tons, a growth rate of 121.2%, with an average grade of 1.17g/t; gold reserves have increased from 37 tons to 40 tons, a growth rate of 8.3%, and there may still be further potential for additional reserves in the future. Estimating based on a mine lifecycle of around 20 years, the future annual production of the Jinling Gold Mine could reach over 10 tons, indicating vast growth potential.

The bank indicates that the Universal Gold Group currently holds an 88.2% stake in the Jinling Gold Mine. Since the re-commissioning of the Jinling Gold Mine, the production Operation of the mine has been very good, and there is still significant potential for expansion and management improvements in the future. This resource update lays a solid foundation for the company's broad growth prospects, and with the gradual ramp-up of current capacity and further expansions in the future, combined with the current upward trend in gold prices, the outlook for the company's subsequent gold production growth is Bullish, expecting a simultaneous rise in both volume and price.

The bank forecasts that the company will achieve a net income attributable to shareholders of 0.59/0.759/0.913 billion yuan from 2024 to 2026, with EPS of 0.54/0.70/0.84 yuan respectively, corresponding to PE ratios of 18X, 14X, and 12X as of December 27, and maintains a 'Buy' rating.