Guizhou Geological and Mineral Resource Development Company Limited (hereinafter referred to as the Geo-Mineral Corporation), stock code 831380, is a mining company that specializes in investing in gold mines and exploring and developing non-ferrous metal. It has 6 holding subsidiaries and more than 20 shareholding companies. Its industrial chain covers exploration and prospecting, gold mining and smelting, precious metal sales and investment, and has basically formed an integrated layout of precious metal exploration and development. By the end of 2016, the company had had total assets of RMB 1.724 billion and net assets of RMB 549 million.
The company now has the mineral rights of 20 mines including gold mines and copper mines in China and 15 mines including gold mines at broad as well as the mining right of 1 gold mine. By the end of 2016, the company had owned more than 60 tons of gold, more than 11 tons of copper, 1.13 million tons of titanium, 3785 tons of niobium, etc.
The company has a professional technical team led by the chief engineer, chief geologist and other backbone experts and composed of several key senior geological engineers with extensive experience in comprehensive research of the metallogenic information, metallogenic prediction, geological prospecting and exploration and dozens of engineers in different professions and with rich experience, which provides technical support in helping the company obtain quality mineral rights and achieving good prospecting results.
Relying on credit enhancement measures including reputation and guarantee of Southwest Energy and Mineral Inc., a controlling shareholder of the company, and its good credit records in banks and other financial institutions, the company can achieve low-cost financing through overseas loan under domestic guarantee, gold leasing and others. Over the past three years, the company has completed financing of more than RMB 1 billion with an overall cost controlled within 5%. And the company has set up overseas financing channels through its subsidiaries overseas, and is currently planning to issue bonds overseas for financing.
Participation in the Belt and Road Initiative:
The Company is Guizhou's first company that has invested in the countries along the Belt and Road. In 2016, the company obtained the mining right of a gold mine and prospecting rights of 3 gold mines by acquiring the Kyrgyzstan Shambesai gold mine development project, and 36.83 tons of resources up to the JORC standards, including 697,000 ounces of gold from the Shambesai gold mine, laying a foundation for the company to transform into a gold mining-based enterprise. The company has potential advantages in obtaining policy bonuses when investing overseas.
Development positioning: an important enterprise engaged in gold exploration, development and integration and nonferrous metal (copper, silver and nickel, molybdenum, etc.) exploration, development and integration, as well as the import and export of mineral products, international mining business, etc., and a leading gold development integration enterprise in Guizhou. During the 13th Five-Year period, the company will have an overall layout in gold-centered poly-metal prospecting and exploration, mining and smelting, processing and sales and form an industrial integration chain.
Overall goal: During the 13th Five-Year period, the company plan to be listed on the main board. To be specific, the company will achieve the overall goal of main board listing in 2020 with 2017-2019 as the base period. The company, as a state-owned holding enterprise promoted for listing by the provincial government, has been included in the list of Guizhou's candidate enterprises for main board listing.
Core performance: Prior to 2020, the company will control 80 - 100 tons of gold and a certain amount of copper, lead and zinc resources, and will have more than RMB 1.5 billion's self-income, more than RMB 3 billion's total revenue and more than RMB 100 million's profits.
Business Partner Plan:
The company intends to introduce industrial, financial, PE, industry fund investors to release up to 40%'s shares in specific forms such as increased investment, share exchange, equity transfer, equity + cash. There is no lock-up period before the main board listing. Strategic investors can obtain high returns on investment after the company is listed.
The company's subsidiaries intend to introduce strategic investors and financial investors to implement joint acquisition, cooperative development to release up to 49%'s shares (provided that they are still held by the company). There is no lock-up period before the main board listing. Strategic investors can obtain high returns on investment after the company is listed.