Hunan Gold (002155) Company’s First Coverage Report: Balanced Development of Gold Antimony Tungsten Benefits Rising Gold Price

Hunan Gold (002155) Company’s First Coverage Report: Balanced Development of Gold Antimony Tungsten Benefits Rising Gold Price

This report reads: The company’s early fundraising projects are continuing, and it is expected that gold mine production capacity will rise steadily in the future; it will sit firmly in the first echelon of domestic antimony tungsten small metals, and its capacity expansion will provide a steady increase.

  Investment Highlights: First Overwrite Give Overweight Rating: Forecast Company EPS 0-2021.



30 yuan.

  The company’s mining and investment projects have been actively promoted, and no increase in gold production capacity has been achieved, and the price of gold from performance gains has increased.

Comprehensive comparison of comparable companies in the same industry gives the company a 19-year PE40 estimate with a target price of 11.

6 yuan, 27% of the current space, for the first time to give an overweight rating.

  Fund-raising projects have been advanced in an orderly manner, and gold mine output has increased.

The company’s existing gold ore products are mainly provided by Jindong Cave Mining, Chenzhou Mining and Xinlong Mining, with a gold reserve of 138.

6 tons.

The company currently produces about 39 gold annually.

53 tons, of which about 4 are provided by self-produced gold mines.

86 tons.

Existing companies are set to increase capacity in 2016, including Dawan Mining’s 1400t / d and Jindong Mining’s 1600t / d. Expansion projects are actively underway. It is expected to reach the state of availability in early 2020, when the company’s gold mine capacity will continue to grow.

It is expected that the total output of gold in 2019 will be 53.

10 tons will benefit from the performance increase expected from the Fed’s interest rate cut.

We estimate that for every 30 yuan / g increase in gold price, the company’s performance will increase 南京桑拿网 by about 1.

1.1 billion.

  The first echelon of domestic antimony tungsten products.

The company currently has 25 antimony metal reserves.

69 cobalt and 10 tungsten metal reserves.

91 ounces.

The company has a total of 26/17 exploration / mining rights.

In 2018, the company produced 10,227 / 17203/2305/2101 tons of refined antimony / antimony oxide / content antimony / formaldehyde antimony, totaling 31,836 tons; tungsten products (mainly ammonium paratungstate) were 2,290 tons.

It is expected that the production capacity of antimony / tungsten will increase steadily in the future. In 2019, it will produce 39300 tons of antimony products and 2,500 tons of tungsten products, and continue to be the first echelon of domestic antimony tungsten small metal products.

  Catalyst: The company’s product prices continue to increase, 杭州桑拿网 production capacity is completed ahead of schedule. Core risks: the development progress of investment projects is gradually expected.