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The share price of Huayu Mining Co., Ltd. soars into the sky with the approval of EIA for super-large lead-zinc mines to increase production capacity and profits.
Jul 2,2020 11:43CST
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Source:SMM
The content below was translated by Tencent automatically for reference.

SMM7 March 2: Huayu Mining shares soared today after rising in the previous two days, soaring 8.52% at one point, the highest level since April 15, and the highest increase of 14% in three days.

Huayu Mining announced on the 29th that the mining and separation project of the Chagele lead-Zinc Mine in Anren County, Tibet Autonomous region, a subsidiary of the company's holding subsidiary, Xigaze Jiashi Mining Co., Ltd., was approved by the Department of Ecological Environment of the Tibet Autonomous region, thus completing an important link in the processing of mining licenses for the project. The company said that after the mining license for this project is approved, Huayu Mining will increase its production capacity and profits on a larger scale.

The project includes mining and mineral processing, of which the mining area is located in Rusha Township, Angren County, Xigaze County, Tibet Autonomous region, covering an area of 1.83 square kilometers. The mining scale of the project is 400000 tons / year (2000 tons / day) and the service life is 17 years (including 2 years of foundation period). The ore mined in the mining area goes directly into the supporting concentrator for washing. The concentrator is located on the hillside to the west-northwest of the mining plant, with a transportation distance of about 1.6km, and the tailings reservoir is located in a valley to the southwest of the concentrator, with an effective storage capacity of about 4.62 million cubic meters and a service life of 15 years. The design scale of the concentrator is 400000 tons / year (2000 tons / day). The flotation process is adopted. The product scale is 11760 tons / year for lead concentrate and 26280 tons / year for zinc concentrate.

On May 9, Huayu Mining announced that it had received a "reply on the approval of 400,000 tons / year mining engineering project for Keyue lead polymetallic Mine in Longzi County, Tibet Huayu Mining Co., Ltd." issued by the Development and Reform Commission of Tibet Autonomous region. The scale of the project is 400000 tons of ore per year, and the main construction contents include underground mining system, mechanical and electrical automobile repair facilities, warehouses, water sources and water supply pipelines, integrated office buildings and other supporting facilities. The service life of the mine is 16.5 years. Mineral resources reserves: retained (332-333) ore resources reserves of 7.0673 million tons, lead, zinc, antimony metal resources of 384900 tons. Among them, the amount of lead metal is 212300 tons, the average grade is 3.00%; the amount of zinc metal is 172600 tons, the average grade is 2.44%; the amount of associated antimony metal is 81300 tons, with an average grade of 1.15%; and the amount of silver metal is 711.8 tons, with an average grade of 100.72 grams per ton.

The owner of Huayu Mine is engaged in the mining, processing, sales and solid mineral exploration of lead, zinc, copper and other non-ferrous metals, and has Class B qualification for solid mineral exploration. At present, there are many mining rights and exploration rights, including two mines with proved reserves of more than large scale and one mine of medium scale or above.

At present, Huayu Mining's domestic controlled resources reserves of lead, zinc, copper, antimony and silver have reached 695700 metal tons, 1.1076 million metal tons, 25200 metal tons, 149500 metal tons and 1587.71 metal tons respectively. The company's overseas investment in the "Tarim Aluminum Gold" joint venture has controllable resource reserves of antimony and gold reaching 264600 metal tons and 49.90 metal tons respectively. Overseas investment Tigray Resources Holdings Co., Ltd. has controllable resource reserves of 9.475 metal tons, while Guizhou Asia-Pacific Mining Co., Ltd., which the company is acquiring, has gold reserves of 59.14 tons.

The company's shareholder dividend return plan for the next three years (2020 / 2022)

1. The form of profit distribution

The company distributes dividends by the combination of cash, stocks or cash stocks. If the company meets the conditions for cash dividends, priority shall be given to the distribution of profits in the form of cash dividends.

The board of directors comprehensively considers the characteristics of the industry, the stage of development, its own business model, profit level and whether there are major capital expenditure arrangements and other factors, put forward a differentiated cash dividend policy: if the company's development stage is a mature period and there is no major capital expenditure arrangement, when carrying out profit distribution, the minimum proportion of cash dividend in this profit distribution should reach 80%; If the company's development stage is a mature period and there are major capital expenditure arrangements, the minimum proportion of cash dividends in this profit distribution should reach 40%; if the company's development stage is in the growth period and there are major capital expenditure arrangements, when carrying out profit distribution, the proportion of cash dividends in this profit distribution should reach at least 20%. If the development stage of the company is not easy to distinguish but there are major capital expenditure arrangements, when carrying out the profit distribution, the cash dividend shall account for at least 20% of the profit distribution.

2. Conditions and proportion of cash dividends

Under the condition that the capital needs of the company's normal production and operation are met, the company shall pay dividends in the form of cash every year; if there is no major investment plan or major cash expenditure, the annual profit distribution of the company in the form of cash shall not be less than 20% of the profits available for distribution in that year.

If the board of directors of the company fails to make a preliminary plan for the distribution of cash profits, the company shall disclose the reasons in its periodic report, and the independent directors shall express their independent opinions on this.

3. Specific conditions for the payment of stock dividends

When the company is in good condition and the board of directors thinks that the stock price of the company does not match the size of the company's share capital, it may put forward a preliminary plan for the distribution of stock dividends in addition to the distribution of cash dividends.

4. Interval of profit distribution

Annual dividends are generally carried out, and the company's board of directors can also propose interim dividends according to the company's capital needs.

The board of directors of the company shall disclose the profit distribution plan and the use plan or principle of the retained undistributed profits in the periodic report, and the undistributed profits retained after the completion of the profit distribution of the company in the current year shall be applied to the development of the company's business.

5. The decision-making mechanism of profit distribution scheme.

The profit distribution plan of the company shall be formulated by the board of directors and submitted to the shareholders' general meeting for consideration and approval, and the independent directors and the board of supervisors shall express their opinions on the profit distribution plan. The company shall, when issuing the notice of convening the shareholders' general meeting, announce the opinions of the independent directors and the board of supervisors. At the same time, the company shall, in accordance with the relevant provisions of the stock exchange, provide Internet or other means to facilitate the participation of public investors in shareholders' meetings.

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