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Bieye Daily Economic News
Western Mining (601168) "Yulong Copper's equity acquisition and capital increase project" has made substantial progress recently. On August 9, 2007, the company officially signed the Equity Transfer Agreement with Zijin Mining Group, which transferred 17% of the shares of Tibet Yulong Copper Co., Ltd. held by Zijin Mining at a transfer price of 106.25 million yuan. After the completion of this share acquisition, the company holds 58% of the equity of Yulong Copper. The stock closed at 60.08 yuan yesterday, down 2.23%.
According to Yulong Copper audit According to the report, by the end of 2006, the company's total assets were 799 million yuan, and its net assets were 625 million yuan. Since Yulong Copper was under construction in 2005 and 2006, its net profit was zero in 2005 and 2006. It is reported that as of December 31, 2006, the mineral resource reserve of Yulong Copper Mine was 42.165 million tons of ore, including about 3200200 tons of copper, which has the potential to become the largest copper mine in China. Yulong Copper has the exploration right of Yulong Copper Mine.
It is reported that Zijin Mining Group, the transferor, is an H-share listed company in Hong Kong. Its main business is to mine, produce, smelt and sell gold and other mineral resources in China. Before the transfer, it held 39% of the shares of Yulong Copper.
It is worth noting that, in addition to Yulong Copper Mine, the company wholly owns or controls and operates four mines: Xitieshan Mine, Huogeqi Mine, Saishitang Mine and Xiacun Mine. The company is the second largest producer of lead concentrate, the fourth largest producer of zinc concentrate and the seventh largest producer of copper concentrate in China.
The insiders believe that the west is the region with the best geological and metallogenic conditions and the richest mineral resources in China. As one of the largest nonferrous metal mining companies in western China, Western Mining is familiar with the cultural and social environment, local minority policies, distribution and development status of mineral resources in western China, and has obvious regional advantages. However, the current valuation of the stock is on the high side, so it is advisable to lose weight when the stock is high.
Sina statement: The content of this article is purely the author's personal view, only for investors' reference, and does not constitute investment advice. Investors operate accordingly at their own risk.
