Shandong Gold Group

May 19, 2023

(Yicai Global) May 19 -- Shandong Gold Mining, one of China’s biggest producers of the precious metal, announced that its controlling shareholder has discovered the country’s largest gold mine. A unit of Shandong Gold Mining’s controller Shandong Gold Group recently found a 580-ton gold mine in the northwestern region of eastern China’s Shandong province, the Shanghai-listed Shandong Gold Mining announced late yesterday. The average grade of gold from the newly-discovered Xiling mine is 4.26 grams per ton, and the potential economic value of the asset is expected to exceed CNY200 billion (USD28.4 billion), according to local media outlet Qilu Evening News. Shandong Gold Group vowed to inject the prospecting rights of the Xiling mine into Shandong Gold Mining at a proper time in the future to avoid direct competition between the parent and its listed subsidiary, the latter noted. The news of the discovery failed to boost Shandong Gold Mining’s shares. The company’s stock [SHA: 600547] closed 1.1 percent down at CNY24.58 (USD3.50). The stock, however, rose more than 3 percent yesterday as the news of the discovery was leaked to the province’s local media before the official announcement by Shandong Gold Mining after hours. Shandong Gold’s mineral gold production reached 38.7 tons last year, accounting for 13.1 percent of China’s total. The firm expects to produce no less than 39.6 tons of gold this year, according to its 2022 earnings report. Editor: Futura Costaglione