Finance Association, November 24 (Reporter Huang Lu) The stock price of Hunan Gold (002155.SZ) rose and stopped for two consecutive days, stimulated by the news that the Wangu Gold Mine in Pingjiang, Hunan Province discovered long-term gold reserves exceeding 1,000 tons and a valuation of 600 billion yuan. The company issued an announcement this evening stating that the company's subsidiary and the subsidiary of the company's controlling shareholder have a total of 6 mining rights and 10 prospecting rights in the mining area; the information reported by the media about the mining area's gold grade and gold reserves is unbiased.

According to the announcement, the Wangu gold field includes 1 mining right and 3 prospecting rights owned by Hunan Gold Cave Mining Co., Ltd., a wholly-owned subsidiary of Hunan Gold, 5 mining rights and 7 prospecting rights owned by the controlling shareholder Hunan Gold Tianyue Mining Co., Ltd. (hereinafter referred to as “Hunan Gold Group”), as well as surrounding prospecting rights owned by other private entities and empty areas not specified in the mining area.

Hunan Gold said that in June 2021, the company signed an “Industry Cultivation Agreement” with Hunan Gold Group, and the company has priority acquisition rights for the Pingjiang County Gold and Mineral Resources Cooperative Development Project. Currently, the company and Hunan Gold Group are actively promoting this project. Eventually, the gold resources of the listed company can be injected based on the reserves submitted by the “integrated exploration” project of the Wangu Mining Area to the Hunan Provincial Department of Natural Resources for review and filing.

At the same time, Hunan Gold said that the information reported by the media is untrue. Among them, “up to 138 g/ton of gold grade” is a sample test grade of part of the core with good mineralization in a single hole during the prospecting process, which does not fully reflect the overall mineralization conditions in the region.

Second, the “predicted long-term gold reserves above 3,000 meters underground” in the report is the estimated long-term resource volume (including the cumulative amount of gold resources discovered in the core area of exploration) in previous years, combined with the distribution of resources discovered above. Systematic geological exploration work is still necessary in the future, and there is some uncertainty about the amount of resources discovered in the final exploration. Affected by the current mining process, there is uncertainty about whether and when this part of the resource can be mined in the future.

Furthermore, the “total amount of gold resources discovered in the core area of prospecting” in the report is the cumulative amount of gold resources discovered by the Hunan Geological Institute over the years. According to information, some of the gold resources have been mined and consumed, and the remaining amount of gold resources still needs to be determined after completing the “integrated survey” work in the Wangu mining area and then reviewed and filed by the Hunan Provincial Department of Natural Resources.

Benefiting from rising gold prices, Hunan Gold's revenue for the first three quarters of this year was 20.989 billion yuan, up 11.93% year on year, and net profit to mother was 0.667 billion yuan, up 73.56% year on year. By product, gold accounts for the majority of the gold business in Hunan, but judging from the self-sufficiency rate of resources, the company's own gold production is not high. In the first half of the year, it produced about 27 tons of gold, of which only 1.96 tons were self-produced.