Core Viewpoint - Shengda Resources (000603) reported strong financial performance in Q3 2025, with revenue of 1.652 billion yuan, a year-on-year increase of 18.29%, and a net profit attributable to shareholders of 331 million yuan, up 71.51% year-on-year, driven by stable mining production, successful technological upgrades, and rising silver prices [1] Company Performance - The company's silver production capacity is accelerating, with a total identified silver metal volume of approximately 12,000 tons and control over seven mining resources, placing it in a leading position among domestic peers [2] - In H1 2025, the company's silver metal production increased by 34.97% year-on-year due to the implementation of core mining technological upgrades [2] - The Jinshan Mining project, one of the largest independent silver mines in China, has completed its 480,000 tons/year ore selection technological upgrade, enhancing recovery rates and reducing unit costs, thus optimizing profitability alongside production growth [2] Growth Potential - Shengda Resources is expanding its gold business through strategic acquisitions, with the Caiyuzi Copper-Gold Mine expected to contribute significantly to gold revenue growth [4] - The Caiyuzi Copper-Gold Mine has a production capacity of 396,000 tons/year and identified gold resources of approximately 17 tons, with a favorable geological setting for further exploration [4][5] - The mine has entered a trial operation phase as of September 2025, with full production expected by 2026, potentially yielding 1-1.5 tons of gold annually, enhancing profit margins due to low production costs [5] Industry Context - The recent surge in precious metal prices is attributed to multiple factors, including supply-demand fundamentals, market risk aversion, and macroeconomic monetary policies [6] - Investment institutions remain optimistic about further price increases in precious metals, driven by concerns over "stagflation" risks in the U.S. economy and expectations of interest rate cuts by the Federal Reserve [7]

Group 1 - US stock index futures rose as investors bet on a Federal Reserve rate cut ahead of key inflation data release on October 24 [1] - S&P 500 futures increased by 0.3%, with technology stocks leading the gains, potentially marking the second consecutive week of over 1% increase for the index [1] - Nasdaq 100 futures rose by 0.5%, while Dow futures were up by 0.1% [1] Group 2 - Intel's stock surged in pre-market trading following the company's optimistic revenue forecast [1] - Ford's shares increased after the company announced it would largely recover next year from setbacks caused by a devastating fire at a key supplier [1] - Newmont Corp.'s stock price fell after the precious metals miner's performance guidance disappointed investors [1] Group 3 - The money market has priced in a Federal Reserve rate cut next week, and US Treasury bonds are expected to achieve their best monthly performance since February [1] - Investors may overlook signs of persistent inflation in the Consumer Price Index report on October 24 due to a data vacuum caused by the recent US government shutdown [1] - Michael Brown, a senior research strategist at Pepperstone Group Ltd., indicated that regardless of data performance, it would not prevent the Federal Open Market Committee from implementing a 25 basis point rate cut in the upcoming meetings [1]

Group 1: Global Mining Development Trends - The "Global Mining Development Report 2025" was released, showcasing global mining trends since 2024, emphasizing high-quality development in the mining sector [1] - In the first half of 2025, global trade volumes were reported as follows: gold at 3053.8 tons, silver at 17,000 tons, and platinum at 476.8 tons [5] Group 2: Coal Trade Insights - Global coal trade volume reached 35.99 exajoules last year, marking a 1.3% year-on-year increase, matching the historical high from 2018 [3] - China remains the largest coal importer, accounting for 32.3% of total trade volume, with a significant 14.0% increase in imports [3] Group 3: Oil Trade Dynamics - Last year, global crude oil trade volume was 2.16 billion tons, a slight decrease of 0.2% year-on-year [2] - China maintained its position as the largest crude oil importer, despite a 0.19 million ton decrease in imports [2] Group 4: Precious Metals Trade - Global gold trade volume fell to 5871.4 tons, a significant decline of 45.9% year-on-year, with China being the largest importer at 44.4% of total imports [4] - Silver trade volume increased by 2.6% to 39,000 tons, with China also leading in both exports and imports [4] Group 5: Strategic Emerging Minerals - Production of strategic emerging minerals like lithium, cobalt, and nickel saw significant growth in 2024, with lithium carbonate production reaching 701,000 tons, a 35.4% increase [6] - However, exploration and drilling activities for these minerals have decreased, with a 3.3% drop in exploration investment [7]

Group 1 - International gold and silver prices reached historical highs on October 17, with London gold peaking at $4,380.79 per ounce and London silver at $54.468 per ounce, but both experienced significant pullbacks [1] - The surge in precious metal prices in October is driven by multiple factors, including expectations of interest rate cuts by the Federal Reserve, which weakened the dollar and lowered real interest rates, enhancing gold's appeal as a non-yielding asset [2] - Geopolitical risks and high levels of uncertainty have elevated safe-haven demand, providing crucial support for gold prices [2] Group 2 - The lack of supply elasticity in precious metals is a significant factor, as mining investments are capital-intensive and have long lead times, making it difficult to increase production in the short term [2] - Severe shortages of silver in overseas markets and the inversion of futures prices in New York and London have contributed to rising silver prices [2] - Concerns over sovereign debt levels and potential currency devaluation have prompted investors to allocate more to precious metals as a hedge against depreciation [2] Group 3 - In response to the volatility in gold and silver prices, the Shanghai Futures Exchange and the Shanghai Gold Exchange implemented risk control measures and issued warnings to investors [3] - The Shanghai Futures Exchange announced adjustments to trading limits and margin requirements for gold and silver futures to mitigate risks associated with high volatility [3] - Analysts recommend cautious participation in the precious metals market, emphasizing the importance of risk control and avoiding impulsive buying [3][4] Group 4 - Despite the long-term bullish outlook for precious metals, short-term volatility risks have significantly increased [4] - Technical analysis suggests that if New York gold effectively breaks through the $4,200 level, the next resistance could be around $4,400, while a new support level is forming near $3,950 [4] - Investors are advised to maintain light positions and take advantage of price pullbacks for gradual accumulation, while strictly managing risk to avoid chasing prices [4]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - The overall strength of the precious metals sector drove the price increase of platinum group metals this month. The prices of platinum group metals have reached relatively high levels, and there is a risk of short - term correction. However, in the context of the significant impact on the US dollar credit and the continuous interest - rate cut cycle of the Federal Reserve, the precious metals sector still has room for strong performance. It is recommended to wait for the full correction of platinum and palladium prices and then look for opportunities to go long, with a focus on platinum with more obvious financial attributes [9]. - NYMEX platinum prices are expected to enter a consolidation range after rising to around the 1730 resistance level and then falling back. NYMEX palladium prices are also expected to enter a consolidation range after falling back from the 1531 resistance level, and its technical chart is significantly weaker than that of platinum [12][15]. 3. Summary According to the Directory 3.1 Monthly Assessment and Market Outlook - **Price and Position Data**: From September 16 to September 23, NYMEX platinum's closing price (active contract) increased by 1.10% to $1662.9 per ounce, the five - day average trading volume decreased by 14.06% to 30119 lots, the position of the main contract increased by 0.22% to 83205 lots, and the management fund's net long position increased by 3638 lots to 18285 lots. NYMEX palladium's closing price (active contract) increased by 14.04% to $1462 per ounce, the five - day average trading volume increased by 41.07% to 9817 lots, the position of the main contract decreased by 1.78% to 21486 lots, and the management fund's net short position decreased by 15 lots to 5176 lots [9]. - **Technical Analysis**: NYMEX platinum's weekly line recorded 7 consecutive positive lines and then broke through upwards, but then fell back from around the 1730 resistance level. NYMEX palladium's main contract stabilized at the 1100 - dollar - per - ounce trend line after touching the rising trend line, and its technical chart is weaker than that of platinum. Both are expected to enter a consolidation range [12][15]. 3.2 Market Review - **Price and Position Changes**: NYMEX platinum's main contract price increased by 20.8% to $1662.9 per ounce, and the total position increased to 97978 lots. NYMEX palladium's main contract price increased by 25.01% to $1462 per ounce, and the total position increased to 20282 lots [21][24]. - **Domestic Price and Spread**: As of October 9, the spot price of platinum on the Shanghai Gold Exchange was 389.51 yuan per gram. The one - month implied lease rate of platinum rose to 12.94%, and that of palladium was 8.15%, both showing a significant rebound [27][31]. - **CFTC Net Position**: As of September 23, NYMEX platinum's management fund net long position increased by 3638 lots to 18285 lots, and NYMEX palladium's management fund net short position was 5176 lots [34][37]. 3.3 Inventory and ETF Holdings Changes - **ETF Holdings**: As of October 9, the total holdings of platinum ETFs were 75.86 tons, and the total holdings of palladium ETFs were 14.55 tons [48][51]. - **Inventory**: As of October 9, CME platinum inventory was 20.83 tons, and CME palladium inventory was 5509.32 kilograms, with the inventory level continuing to rise [55][60]. 3.4 Supply and Demand - **Supply**: In 2025, the total platinum output of the top 15 mines is expected to be 127.47 tons, a decrease of 1.9% compared to 2024. The total palladium output of the top 15 mines is expected to be 165.78 tons, a decrease of 0.86% compared to 2024 [66][69]. - **Demand**: China's platinum imports in August were 8.21 tons, showing a rebound compared to July. Palladium imports in August were 2.06 tons, showing a decline compared to July [72][75]. 3.5 Monthly Spread and Cross - Market Spread - **Monthly Spread**: The report provides multiple sets of data on the monthly spreads of NYMEX platinum and palladium, but no specific analysis of the spreads is given [91][99]. - **Cross - Market Spread**: The report shows the spread data between the London spot market and NYMEX for platinum and palladium, but no specific analysis is provided [106].

Core Viewpoint - Hecla Mining's stock price declined by 1.7% following the announcement of progress in its exploration project in Montana, which has received a favorable decision from the U.S. Forest Service [1] Group 1: Company Developments - Hecla Mining is making advancements in its exploration project in Montana, which is significant for its copper and silver resources [1] - The company is open to establishing strategic partnerships to further advance its exploration efforts [1]

Market Overview - The Hong Kong stock market experienced a decline, with the Hang Seng Index falling by 0.67% to below 27,000 points, the Hang Seng Tech Index down by 1.1%, and the Hang Seng China Enterprises Index decreasing by 0.88% [1][3]. Technology Sector Performance - Major tech stocks such as Xiaomi, Alibaba, and JD.com saw declines of 2.09%, 2.49%, and 2.14% respectively, while NetEase and Kuaishou also dropped by over 1% [3]. Notable Stock Movements - China Gas Holdings (08246.HK) experienced a significant increase, initially rising over 300% and closing up 113.51% at HKD 0.158 per share. This surge followed an announcement of a subscription agreement for 334 million shares at a price of HKD 0.075, representing a premium of approximately 1.35% over the previous closing price [3][4]. Precious Metals Sector - The precious metals sector showed strength, with Zijin Mining International (02259) rising by 8.24% to HKD 147.2, doubling its listing price of HKD 71.59. The current spot gold price reached USD 3,948.81 per ounce, up by 1.26% [6]. Semiconductor Sector - Semiconductor companies continued their upward trend, with SMIC (0981.HK) reaching a new high of HKD 92.1, marking a 0.17% increase. Huahong Semiconductor (1347.HK) also saw a rise of 4.57%, with a year-to-date increase of 331.6% [7]. IPO Activity - The Hong Kong IPO market remains robust, with 68 companies listed in the first three quarters, a year-on-year increase of 47.83%. The total fundraising amount reached HKD 182.397 billion, a significant increase of 222.16% compared to the previous year, marking the highest level since 2021 [7].

Group 1 - The Hang Seng Index fell by 0.61%, down 164 points, closing at 26,976 points, while the Hang Seng Tech Index dropped by 1.2% [1] - International gold prices reached a new historical high, with the precious metals sector showing strong gains. China Silver Group (00815) surged over 20%, and Zijin Mining International (02259) rose more than 5% [1] - Xinjiang Xinxin Mining (03833) increased by over 12%, with a cumulative rise of over 300% this year, and plans to issue A-shares [2] - Bitcoin surpassed $125,000, setting a new historical high, leading to a collective rise in cryptocurrency-related stocks. OK Blockchain (01499) rose over 14%, and Boya Interactive (00434) increased by over 10% [2] - Hesai Technology (02525) rose over 4%, marking the production of its one millionth LiDAR unit by the end of September [3] - Beijing University Blue Sky Universe (08095) surged over 58% as its subsidiary JBD partnered with AMAT and Thunderbird Innovation to enhance AR glasses display quality [4] - Yunfeng Financial (00376) increased by over 7%, collaborating with Anthea to explore blockchain-based insurance products [5] - Dingdang Health (09886) soared by 26%, as the company continues to expand its innovative drug portfolio, recently launching multiple new drugs [6] - Shuangdeng Co., Ltd. (06960) rose over 9%, driven by increased energy demand for AIDC, being a major supplier for Alibaba's data center energy storage [7] - Hua Hong Semiconductor (01347) increased by over 5%, achieving an eight-day consecutive rise, with institutions noting advanced manufacturing capacity as a scarce resource [8] Group 2 - Gaming stocks experienced a significant decline, with Macau's September gambling revenue growing by 6%, which was below expectations, and further impacted by a typhoon during the Golden Week. New World Development (00200) fell by 5.4%, and MGM China (02282) dropped by 4.45% [8]

Geopolitical Tensions and Market Impact - The Israeli airstrike on Hamas in Qatar has escalated geopolitical tensions, surprising the U.S. and potentially undermining normalization efforts with Gulf Arab nations [1] - The airstrike may have ended Qatar's role as a mediator in ceasefire negotiations, with other countries like Turkey being put on high alert [1] - Poland's downing of Russian drones has led to heightened tensions, with Poland seeking NATO consultations, which could draw NATO into direct conflict with Russia [3] Precious Metals Market Dynamics - Comex gold futures reached a record high of $3,715.20 per ounce, while silver hit a 14-year high of $42.355 per ounce, driven by geopolitical instability [4] - Increased instability in the Middle East is expected to drive safe-haven demand for precious metals [5] - Major central banks are leaning towards easier monetary policies, with the U.S. jobs growth numbers revised down by 911,000, potentially affecting consumer confidence [6][7] Strategic Mineral Stockpiling - Countries are rushing to stockpile key minerals, with China leading in strategic mineral dominance, prompting other nations to follow suit [10] - The U.S. has initiatives to invest in domestic rare earth mining and processing to reduce dependence on China, while the EU has established a strategic stockpiling program [11] - The trend of stockpiling strategic minerals is likely to continue, positioning both the U.S. and China as major competitors in the rare-earth minerals market, which is bullish for precious metals [12]

Group 1 - The precious metals sector in the Hong Kong stock market has strengthened, with China Gold International rising over 10% [1] - Other companies such as China Silver Group, WanGuo Gold Group, Shandong Gold, and Zhaojin Mining have increased by over 8% [1] - Lingbao Gold and Chifeng Jilong Gold also experienced gains [1] Group 2 - The spot gold price has surpassed $3,470 per ounce, reaching a new high since April 22 [1]