2 1 Shi Ji Jing Ji Bao Dao·2025-12-01 10:41Core Viewpoint - Jiangxi Copper is pursuing a non-binding cash offer to acquire all shares of SolGold Plc at a price of 26 pence per share, aiming to enhance its resource base and address profitability issues in its copper production [1][2][5] Group 1: Acquisition Details - Jiangxi Copper has already acquired a 12.19% stake in SolGold, becoming its largest single shareholder, with other significant shareholders including BHP and Newcrest [1][3] - The two non-binding cash offers submitted by Jiangxi Copper on November 23 and 28 have been rejected by SolGold's board, but discussions are ongoing [1][5] - According to UK regulations, Jiangxi Copper must issue a formal offer or abandon the acquisition by December 27 [1][5] Group 2: SolGold's Assets - SolGold's core asset is the Cascabel project in Ecuador, which is considered one of the largest undeveloped copper-gold mines discovered in South America in the past decade, with significant resources including 12.2 million tons of copper and 30.5 million ounces of gold [3][4] - The Cascabel project is expected to start early engineering in 2026 and achieve first production by 2028, with an average annual copper production of 123,000 tons [8] Group 3: Jiangxi Copper's Production Capacity - Jiangxi Copper's copper smelting capacity is substantial, with a projected capacity of 2.3 million tons per year in 2024, necessitating significant copper concentrate procurement to meet this demand [6][8] - The company has faced profitability challenges, with copper cathode gross margins fluctuating between 3% and 4% over the past five years [6][8] Group 4: Strategic Importance - The acquisition of SolGold is a strategic move for Jiangxi Copper to enhance its resource base and improve its overall industry position, potentially doubling its copper production capacity if the acquisition is successful [8][9] - Jiangxi Copper also holds an 18.47% stake in First Quantum, a major global copper producer, indicating its strategy to expand its influence in the copper mining sector [9][10]