Yulong Gold(SH:601028)2023-10-24 02:28Company Overview - Yulong Co., Ltd. was established in December 1999 and listed on the Shanghai Stock Exchange in 2011. The company is headquartered in Jinan, Shandong Province, and transitioned from private to state control in October 2021 [1]. Strategic Focus - The company adheres to a "dual-driven" strategy focusing on precious metals and new energy materials, with mineral trading and non-metallic minerals as beneficial supplementary development positions [3][9]. - Yulong aims to become a high-growth international mining company with global vision, advanced management, flexible mechanisms, and significant benefits [3]. Performance Highlights - For the first three quarters of 2023, the net profit attributable to shareholders is expected to be between CNY 339 million and CNY 381 million, representing a year-on-year increase of 143.82% to 174.03% [3]. - The company has successfully completed several acquisitions, including the Pakingo Gold Mine in Australia and the Loufangou Vanadium Mine in Shaanxi [3]. Mining Operations - The Pakingo Gold Mine has shown strong growth, with gold production reaching 1.56 tons in the first half of 2023, and an estimated annual production of around 3 tons [4]. - The mine's operational capacity has improved, with mining costs reduced from CNY 314 per gram in 2022 to approximately CNY 220 per gram in 2023 [4][5]. Shareholder Engagement - In 2022, the company distributed dividends totaling CNY 77.52 million. In 2023, the company repurchased 501,000 shares and plans to use the repurchased shares for employee stock ownership plans or equity incentives [4][6]. Future Plans - The company is actively seeking new gold mining projects and plans to utilize capital markets for growth through various financing methods, including private placements and convertible bonds [5][6]. - Yulong is also expanding its vanadium mining operations, with a focus on the Loufangou Vanadium Mine, which has significant resource potential [7]. Market Position - The company is positioned to reduce the proportion of bulk trading in favor of enhancing profitability, while maintaining a stable development trajectory [9]. - Yulong is committed to building a green ecological mining environment and aims to achieve long-term, stable growth while ensuring safety across production, finance, and operations [9].