Zijin mining Collapse-------to raise money crazy overseas buying ore

Myth-making and overseas expansion, the topic of Zijin mining seems to have not finished, its share price will be on the premise of rising profits, it is not known.　　However, in the case of a gradual decline in the contribution of gold to the company's turnover, the company's ability to expand overseas is worth paying attention to.　　The suspense May 25 9 o'clock in the morning, Fujian province Shanghang County Zijin Avenue, No. 1th Zijin Company headquarters. The general meeting of 26 participants considered the adoption of a provisional proposal for the annual donation of the company.　　The proposal was proposed by the company's shareholder, Xinhua Industrial Group Co., Ltd. in April.　　This is after Chen Fashu and its holding Xinhua group itself to donate shares to set up the Xinhua Capital Fund, Xinhua are another initiative.　　According to the proposal, Xinhua recommends that the shareholders ' general meeting authorize the Board of Directors to make the decision on donation within 6% of the company's annual profit, and to report the actual implementation of the donation to the general meeting of shareholders each year. The proposal was eventually approved by 95.57% of the total number of votes.　　Another 4.43% of the total vote is against it. Does the donation arrangement continue to be closed with the future non-tradable units?　　The Zijin mining industry has not been able to respond.　　An indisputable fact is that Xinhua is still holding 1.7 billion shares of Zijin mining. April 27, 2009, the Zijin mining 4.925 billion shares of restricted shares lifted, according to the day 9.43 yuan closing price, the original shareholder's book income reached an astonishing 46.4 billion yuan.　　On the day of the lifting of the ban, it created more than 200 million yuan rich. Among them, at that time, in Zijin mining lifted the top ten shareholders of the stock, the most shareholding for the Chen Fashu and its holding Xinhua industrial group, the two share a total of 2.177 billion shares.　　On the day of the lifting, its carrying value amounted to 20.5 billion yuan. However, as of September 30, 2009, except Zijin Mining chairman Chen Jinghe held 87 million shares, other natural persons have been reduced.　　As of the first quarter of this year, the release of the ban on the restricted shares of the remaining 2.294 billion shares.　　Within one year, a total of less than 2.631 billion shares. Earlier, Chen Fashu, one of the company's major shareholders, launched the Xinhua Capital Fund.　　Chen Fashu said it would donate to the Xinhua capital the entire stake in the Zijin mining industry, as well as a stake in the Zijin mining sector owned by Xinhua. Mr Chen would tree of the good, was once questioned as transiting fund to achieve the reduction of tax avoidance.　　and Xinhua's initiative also makes people have similar doubts.　　Behind the Zijin is the concern of major shareholders over the future of the mining industry. Zijin mining "hidden worries", the locals know that the big Purple mountain sooner or later the day will be dug out.　　"A person who has been to the Shanghang County Zijin Mining survey describes how locals feel. August 2001, the Ministry of Land and Resources for the Zijinshan gold Mine new exploration report passed the review. The review confirmed that the Zijinshan gold mine reserves 138.4 tons. This is more than 20 times more than the 5.45 tonnes of reserves that Chen Jinghe and geologists gave them. However, continue toWhether the results of exploration will increase in such a multiple, the answer is basically impossible.　　One industry analyst said that for mining listed companies, on the one hand is the amount of mineral resources, on the other hand, the price of ore determines the value of the listed company. Gold and copper are the most important part of the Zijin mining business. Among them, the contribution rate of gold product to turnover gradually tends to decline.　　Copper has become the biggest growth driver of the non-gold business.　　According to its 2009 annual report, the gold business growth rate was 31.5% in 2009, while the copper business grew by 38.13%.　　According to the February report of UBS Securities, the composite growth rate of Zijin mining gold production is 4.3%, and the composite growth rate of copper production will reach 14.5% between 2009 and 2010. The report showed that gold and copper prices changed by 10% per cent in 2010, and the valuation of corporate earnings per share changed by 8.8% and 5.9% respectively during the same period.　　Among many brokerages, UBS was the only brokerage that gave it a rating at the time. Crazy overseas purchases to expand the mineral resources, from early time Zijin mining has opted for external expansion. Currently has a ZGC gold mine in Tajikistan, Russia map tile lead-zinc ore, the Canadian mainland mining projects.　　But from the current annual report's profit composition, these overseas acquisitions of resources in the total amount of their profits accounted for very little. May 8 This year, the company issued a notice to the Sino-African Development Fund limited to jointly purchase Copperbelt Minerals Limited held Platmin Congo Limited all issued shares and Copperbelt group internal accounts receivable.　　The deal is expected to cost the company 1.16 billion of billions of dollars. At the same time, the offer to acquire Indophil Resources NL shares is being approved.　　This will cost about 3.368 billion yuan. The two deals are financed by the company's own assets and bank loans.　　For such a high-priced takeover, some insiders say there is uncertainty about the profitability of these mines. May 24, Zijin Mining H-Shares announced that the company's wholly-owned subsidiary of the Group Limited in the May 20, 2010 and the Golden Era International limited to enter into a transfer of equity agreements. According to the agreement, the group sold to the Golden Light International Gold Group of China's 70% stake will increase to 212 million yuan.　　than the original agreement of 192 million yuan, an increase of 20 million. The best group owns 70% of China Gold Group, while the only real asset owned by China Gold Group is 50.5% of Shandong Grand Gold Co.　　Large group of countries mainly engaged in gold smelting business. Zijin Mining did not make any representations as to the specific reasons for the sale. But funding for overseas expansion seems to be a drop in the bucket.