CHIFENG GOLD (06693.HK): Suspends Operation of Mengkang Rare Earth Project in Laos, 2025 Net Loss Attributable to the Company of RMB 54.06 Million

NewTimeSpace News: Chifeng Jilong Gold Mining Group Limited (stock code: 06693) issued an inside information announcement on August 7, stating that, in response to and in strict compliance with the relevant policy requirements for rare earth resource development and to fulfill corporate social responsibility, after prudent research and evaluation, Chixia Xiamen Xiamen Gold Tungsten Metal Resources Co., Ltd. ("Chijin Xiawu"), a non-wholly-owned subsidiary in which the Company holds a 51% interest, has decided to suspend the operation of the Mengkang rare earth project in Mengkang County, Xiangkhouang Province, Laos, which is operated by its subsidiary Chixia Mining (Laos) Co., Ltd., and will closely follow relevant policy changes and actively seek solutions going forward.

According to the announcement, in 2022, the Company established a joint venture, Chijin Xiawu (formerly Shanghai Chijin Xiawu Metal Resources Co., Ltd.), with Xiamen Tungsten Co., Ltd., aiming to build a rare earth resource cooperation and development platform. On March 4, 2024, Chijin Xiawu (as guarantor) and its wholly-owned subsidiary Chixia Laos (as purchaser) signed a share transfer agreement with China Investment (Property) Co., Ltd. (as vendor), pursuant to which Chixia Laos acquired a 90% equity interest in China Investment (Laos) Mining Sole Co., Ltd. (now renamed Chixia Mining (Laos) Co., Ltd.) by cash and debt assumption, with the acquisition completed on March 25, 2025. Apart from the Mengkang rare earth project, Chijin Xiawu and its controlled subsidiaries do not operate any other rare earth projects, and the project has been in trial production since the completion of the transaction. The Mengkang rare earth project has retained ore of 124.69 million tonnes at a grade of 238.04 g/t, containing 29.68 thousand tonnes of metal, with a remaining mine life of 7 years; the trial mining permit is valid until December 27, 2025 and the exploration right until April 20, 2027.

In terms of financial impact, in 2025, Chijin Xiawu produced 998.56 tonnes of rare earth products, recording a net loss attributable to Chifeng Gold of RMB 54.06 million (audited), the absolute value of which accounted for 1.75% of Chifeng Gold's consolidated net profit attributable to the parent company's shareholders in 2025; in the first quarter of 2026, it produced 63.60 tonnes of rare earth products, recording a net profit attributable to Chifeng Gold of RMB 0.37 million (unaudited), accounting for 0.04% of the consolidated net profit attributable to the parent company's shareholders in the first quarter of 2026. The announcement noted that the suspension is expected to have a relatively small impact on the Company's overall operating results, subject to the audited financial reports, and Chijin Xiawu is currently uncertain as to when the project will resume operation.

The Company stated that its principal businesses including gold and electrolytic copper are operating well with healthy and sound financial conditions, and its debt-to-asset ratio remains at a relatively low level in the industry; the Company will actively respond and make every effort to mitigate the adverse impact of suspending rare earth development, while continuing to focus on its principal businesses and increasing investment in resource exploration, technological transformation and new expansion projects, and will fulfill information disclosure obligations in a timely manner in accordance with subsequent progress.

NewTimeSpace Disclaimer: All content herein is the original work of NewTimeSpace. Any reproduction, reprinting, or use of this content in any other manner must clearly indicate the source as "NewTimeSpace". NewTimeSpace and its authorized third-party information providers strive to ensure the accuracy and reliability of the data, but do not guarantee the absolute correctness thereof. This content is for reference only and does not constitute any investment advice. All transaction risks shall be borne by the user.