Shang Hai Zheng Quan Bao·2025-08-29 22:18Core Viewpoint - The company has signed a cooperation intention letter with Zijin Mining Group to develop the Shapingou molybdenum mine in Anhui, which is expected to strengthen the company's industrial chain and align with its development strategy, without significantly impacting the company's 2025 operating performance [2][11]. Group 1: Cooperation Agreement Details - The cooperation intention letter is a framework agreement based on mutual willingness, with only the commitments having legal binding force, while other aspects remain uncertain regarding formal contract signing [2][12]. - The agreement involves Zijin Mining transferring 24% of its stake in Anhui Jinsan Molybdenum Co., Ltd. to the company, resulting in Zijin holding 60% and the company holding 34% of the stake post-transfer [5][6]. - A new smelting company will be established jointly by both parties, with the company holding 51% and Zijin holding 49%, focusing on molybdenum smelting and deep processing [6][9]. Group 2: Financial and Operational Implications - The Shapingou molybdenum mine has a total molybdenum resource of 2.1 million tons, with an average grade of 0.187%, and a molybdenum metal reserve of 1.1 million tons at an average grade of 0.2% [5]. - The cooperation aims to ensure the efficient and scientific development of the Shapingou molybdenum mine, with both parties agreeing to prioritize financing and investment decisions based on their respective shareholdings [7][9]. - The company will conduct necessary financial, legal due diligence, and audits before finalizing the cooperation agreement [19].