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Societe Generale Mining: it fell to the limit yesterday and rose to the limit today! Yinman Mining is expected to resume production in July
Jul 1,2020 10:52CST
Societe Generale shares are close to their daily limit today after falling by their daily limit, rising as much as 8 per cent as of 10:53.
The content below was translated by Tencent automatically for reference.

SMM7 March 1: after yesterday's limit, Societe Generale Mining shares are close to the limit today, rising as much as 8% as of 10:53. The reserves of silver, tin and zinc in Xingye Mining reached 12500 tons, 240000 tons and 3 million tons. Yinman Mining is not only the main mine of the company, but also the largest silver mine in China.

The Emergency Department of Inner Mongolia Autonomous region sent a reply letter to the Emergency Bureau of Xilingol League on June 18, agreeing to the acceptance of Yinman Mining Organization by the Emergency Bureau of Xilingol League. If the acceptance of the expert group of the League Emergency Bureau goes smoothly, Yinman Mining is expected to resume production in July. Yinman Mining mainly adopts underground mining and ramp development and transportation scheme. That is to say, the ore above the rock wall is shedded underground by means of perforation and blasting, and then by setting an underground ramp outside the boundary of the open-pit stope (setting an entrance at the corresponding elevation leading to each mining water level), the raw ore is transported from the mine to the wellhead by car. When the second phase of 2022 reaches production, the output of silver will reach 300 tons per year.

Dongxing Securities said Yinman Mining has made a significant contribution to Societe Generale's profits. In 2016, Societe Generale Mining completed the acquisition of 100% stake in Yinman Mining with 2.414 billion. In 2017, Yinman Mining reached 1.04 billion in revenue and 467 million in net profit, accounting for 49.2 per cent (2.11 billion) of revenue and 82.7 per cent (565 million) of total net profit in Societe Generale. In the first three quarters of 2018, Yinman Mining had revenue of 926 million, with a net profit of 398 million, accounting for 51.9% (1.78 billion) of Societe Generale's revenue and 70.1% (568 million) of net profit. In addition, Yinman Mining is also expanding its production capacity and resource reserves. Take the technological renovation project as an example, after the completion of the technological transformation, the production of silver, copper and tin metals in Yinman Mining increased by 40%, 100% and 100% respectively. Societe Generale Mining 2018 full-year net profit was boosted by the completion of the technological transformation of Yinman Mining. Societe Generale Mining expects its net profit to reach 600-750 million in 2018, an increase of 6.2% over the same period last year. The completion of a series of copper-tin technical renovation projects of 2500 tons per day in Yinman Mining and meeting the design requirements led to an increase in production and sales of silver, copper and tin metals over the same period last year, which was the main reason for boosting business performance during the reporting period.

Earlier, the company answered questions from investors that the second phase of Yinman Mining, which was originally scheduled to be completed by the end of 2020, was affected to a certain extent; up to now, the second phase has obtained the formalities of project establishment and land expropriation, and construction can be resumed after Yinman Mining resumes work. The construction scale of the second phase is 1.65 million tons / year. After the project is completed and put into production, it will have a positive impact on the company's performance.

On February 26, 2019, the Emergency Management Bureau of Xilingol League in Inner Mongolia issued a notice on the immediate suspension of production and construction of non-coal mining enterprises in the whole league, requiring all metal and non-metallic mining enterprises in the league to immediately stop production and construction, and comprehensively carry out self-investigation and self-correction. put an end to accidents. According to the above notice, the company's wholly-owned subsidiary is setting Baiqi Qianjinda Mining to stop production and construction. The company announced on May 23rd that the construction of the project of mining 300000 tons of silver-lead-zinc polymetallic ore in Donghu mining area of Qianjinda Mining Co., Ltd. will resume. Qianjin Da Mining will be fully produced in 2021, with a design capacity of 120t / year of silver and 25000 tons of lead and zinc.

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