The company released its 2023 annual report: In 2023, it achieved revenue of US$459 million, or -58.4% year-on-year. Mine operating profit decreased by 80% from US$396 million in the same period in 2022 to US$80 million, with a net loss of US$23 million.

Production: In 2023, the company's mine gold production was 4.6 tons, -2.8 tons year on year, mine copper production was 20,000 tons, and -65,000 tons year on year.

Production at the Changshanchou gold mine declined slightly due to slope treatment, and costs increased. The gold production at the Changshan Hou mine was 4 tons, -0.6 tons year on year. The total unit production cost was 1,420 US dollars/ounce, the unit cost was +80 US dollars/ounce, and the unit cash cost was 952 US dollars/ounce, and the unit cash cost was 952 US dollars/ounce, and the unit cash cost was 952 US dollars/ounce year over year. The open pit mining operation of the Changshan Dou gold mine is nearing the end of its life. As the depth of the pit increases, the stability of the open pit slope is particularly important. To ensure slope stability and prevent systemic risks, the mining rate was reduced from the end of the third quarter to the fourth quarter of 2023 to strengthen the management and maintenance of the open pit slope. As of January 4, 2024, slope maintenance work has been completed, and mining activities (including mining, hauling, crushing and heaping) have returned to normal operating levels.

The first phase of the Jiamado metal ore beneficiation plant is gradually recovering, and the phase II beneficiation plant is expected to resume production in the middle of the year. On March 27, 2023, tailings overflow occurred at the Guolanggou tailings depot in the Jiama mining area, and operations were suspended. In 2023, the Jiama mine produced 0.6 tons of gold, -2.2 tons year on year, and the mine produced 20,000 tons of copper, -65,000 tons year on year. On December 15, 2023, the first phase of the 6,000 tons/day beneficiation plant was restarted. Currently, all maintenance and reinforcement of the Guolanggou tailings depot have been completed, and the safety assessment report has been completed, and is awaiting government inspection and approval. According to the announcement, the company is expected to receive the government's approval to resume operations in May 2024. After receiving approval, the Jiama mining area will resume production of the Phase II beneficiation plant according to the original processing capacity of 34,000 tons/day.

Production guidelines for 2024: The Changshanchou gold mine is expected to produce 3.3-3.5 tons of gold; the Jiama mine is expected to produce 432-44,500 tons of copper and 1.32-1.41 tons of gold.

Maintain a “Highly Recommended” investment rating. Considering that Jiama Mine is expected to resume production in mid-2024, we expect net profit of 10.4/24.6/2.51 billion yuan in 2024-26, corresponding to a price-earnings ratio of 17.1/7.2/7.0 times, maintaining a “highly recommended” investment rating.

Risk warning: falling precious metals prices, mine resumption progress falling short of expectations, mine accident risk, geopolitical risk, exchange risk, etc.