Poor performance due to single main business, Western Region Gold Co.Ltd(601069) (601069. SH) plans to inject manganese ore assets to form a dual main business pattern of "gold + manganese ore".
On the evening of February 11, Western Region Gold Co.Ltd(601069) (601069. SH) announced that the company planned to purchase 100% equity of baiyuanfeng, Kebang manganese and Mengxin Tianba by issuing shares, and the total transaction consideration of the three companies was 2.614 billion yuan.
At the same time, Western Region Gold Co.Ltd(601069) plans to issue shares to no more than 35 qualified specific objects to raise matching funds, with a total amount of no more than 400 million yuan to supplement working capital and repay debts.
The controlling shareholder of Western Region Gold Co.Ltd(601069) is Xinjiang nonferrous metals, which is subordinate to the SASAC of Xinjiang Autonomous Region.
Before the transaction, Xinjiang nonferrous metals held 65% shares of baiyuanfeng and Kebang manganese respectively, and Yang Shengrong held 35% shares of baiyuanfeng and Kebang manganese and 100% shares of Mengxin Tianba.
After the completion of the transaction, baiyuanfeng, Kebang manganese industry and Mengxin Tianba will become wholly-owned subsidiaries of Western Region Gold Co.Ltd(601069) . Yang Shengrong is expected to hold Western Region Gold Co.Ltd(601069) 11.39% of the shares, ranking the second largest shareholder after Xinjiang nonferrous metals.
Baiyuanfeng and mengxintianba are mainly engaged in manganese mining business, while Kebang manganese industry has a complete electrolytic manganese production system.
Manganese is an alloying element that has an important impact on the properties of steel and its steels. All steel grades and their steels contain manganese. At present, there is no other element to replace the role of manganese in steel production. About 95% of manganese in the world is used in iron and steel metallurgy industry.
According to the data of business agency, as of February 11, the reference price of electrolytic manganese in China was 40600 yuan / ton, an increase of 2.78% over the price of 39500 yuan / ton at the beginning of the year, which is at an all-time high.
Western Region Gold Co.Ltd(601069) said that after the completion of the above transaction, the company will realize the dual main business of "gold + manganese ore" mining and metallurgy, so as to reduce the business risk caused by the single business and product.
According to the financial report, Western Region Gold Co.Ltd(601069) is currently the largest modern gold mining, dressing and smelting enterprise in Northwest China, with major gold production mines such as Hatu gold mine, Ashi gold mine and Hami gold mine owned by Yili company. The output of mineral gold is among the top ten in China.
Western Region Gold Co.Ltd(601069) said that at present, the company is engaged in gold mining, beneficiation and smelting, and its industry and business are relatively single. Because the gold industry is very vulnerable to factors such as the prosperity of global economic indicators and regional security situation, the company's operation depends on the trend of the gold market and the scale of its gold reserves.
According to the financial report, due to the long shutdown time of major mines and other factors, in the first three quarters of last year, Western Region Gold Co.Ltd(601069) achieved a revenue of 3.462 billion yuan, a year-on-year decrease of 7.49%; The net loss was 19 million yuan, a year-on-year decrease of 159.79%.
As early as July 2017, Western Region Gold Co.Ltd(601069) had planned to acquire 51% equity of baiyuanfeng and 51% equity of Kebang manganese industry to get involved in the manganese industry, but the transaction was finally terminated in January 2018 due to the unfinished evaluation of mining rights, the failure to handle ownership certificates and environmental impact.
As of the closing on February 11, Western Region Gold Co.Ltd(601069) shares closed at 12.49 yuan / share, down 0.56% from the previous day.
