Hengxing Gold Holding Company Limited (2303.HK): Operational Updates of Gold Mountain Mine for the Second Quarter of 2018
Hengxing Gold Holding Company Limited (2303.HK), an investment holding company, engages in the mining and processing of gold; and sale of processed gold products in the People's Republic of China. It operates through two segments, Gold Mining and International Trading. The company holds interest in the Gold Mountain Mine, which includes the Yelmand prospect, the Mayituobi prospect, the Jinxi-Balake prospect, the Kuangou prospect, and the Lion prospect, located in Yining County of Xinjiang.
Based on the unaudited operational data of the Group and information currently available to the Company, Gold Mountain Mine processed 1,925,568 tonnes of ore and produced 27,534ounces (equivalent to approximately 856.4 kg) of gold during the second quarter of 2018, up31% and 66% respectively from the same period last year.
Other than processing current mined ore, the high pressure grind roller is as well reprocessing 1 million tonnes of the ore in the existing pad with an average grade of 0.4g/t in 2018 and is expected to achieve a gold production of 200 kilograms.
Overall, the total stripping cost increased as well as some material costs increased.
The Company took a proactive role to manage maintaining the all-in sustaining cost at a competitive level of RMB149.2/gram (equivalent to US$701/oz with exchange rate of RMB6.6166/USD as at 30 June 2018).
Other Updates of Gold Mountain Mine
As disclosed in the previous announcements, a final award on the arbitration between Jinchuan Mining and Trio China Ltd ("Trio") was issued on 22 February 2018. The award has been enforced on 3 July 2018. Jinchuan Mining has collected the refund of purchase price and legal cost totaling RMB11,930,000 from Trio.
Production Updates of Gold Mountain Mine
As at 30 June 2018, Gold Mountain Mine has four operating pits, namely the Yelmand pit, the Mayituobi pit, the Jingxi-Balake pit and the Kuangou pit, which has commenced mining activities since April 2018. The table below illustrates the production details of each pit in the second quarter of 2018.
16/08/2018 Dissemination of a Marketing Press Release, transmitted by EQS Group.
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