CTM(SH:600711) 2 1 Shi Ji Jing Ji Bao Dao·2025-11-13 15:01Core Viewpoint - The success of Zijin Mining International in the Hong Kong stock market serves as a significant reference for other domestic mining companies, particularly for Shengtun Mining, which is expanding its gold business through strategic acquisitions and investments [1][2]. Group 1: Company Developments - Shengtun Mining plans to establish a wholly-owned subsidiary, Shengtun Gold Holdings, to invest $200 million (approximately 1.42 billion RMB) into its subsidiary, Shengtun Gold International [1]. - The company recently announced the acquisition of 100% of Canadian Loncor's shares for $190 million, aiming to gain control of the Adumbi gold mine in the Democratic Republic of Congo [2][4]. - Shengtun Mining's gold business is becoming a strategic focus, with plans to gradually develop this segment alongside its existing energy and base metal operations [2][8]. Group 2: Market Context and Comparisons - The gold sector is increasingly seen as a vital area for mergers and acquisitions within the mining industry, as highlighted by Zijin Mining's interest in gold and silver [4]. - Other major players, such as Luoyang Molybdenum, are also expanding their gold assets, indicating a broader trend in the industry towards gold acquisitions [4]. - Shengtun Mining's resource layout and acquisition logic align with industry leaders, despite its smaller scale compared to giants like Zijin Mining and Luoyang Molybdenum [4]. Group 3: Financial Implications - The Adumbi gold mine has a high ore grade, with gold content ranging from 2.08 g/t to 2.89 g/t, which could significantly enhance Shengtun Mining's profitability once operational [5][11]. - The acquisition of Loncor is expected to add a profitable business module to Shengtun Mining's existing operations, which primarily focus on energy and base metals [11][13]. - The company aims to improve its overall profitability by expanding its precious metals portfolio, as evidenced by the higher profit margins associated with gold compared to its current operations [13][14].