The production capacity of the new Shaochenzhou antimony industry has been reduced to 20% by two subordinate companies of Hunan Gold due to power cut.

Hunan Gold announced at noon on September 27 that recently, due to power cuts, Huangjindong Mining and Dawan Mining Concentrator temporarily stopped production. At present, electricity is mainly to ensure underground safety, and the production capacity of the new Shaochenzhou antimony industry has been reduced to 20%. The handling capacity of antimony gold concentrate has been reduced from 30 tons / day to 5 tons / day.

Huangjindong Mining was founded on December 20, 2001, with a registered capital of 438.8 million yuan, mainly engaged in gold mining and other business. In 2020, Huangjindong Mining (headquarters) produced 1213 kg of gold. From January to June 2021, Huangjindong Mining (headquarters) produced 614 kg of gold.

Dawan Mining was founded on September 11, 2003, with a registered capital of 120 million yuan, mainly engaged in gold mining and other business. In 2020, Dawan Mining produced 900 kg of gold. From January to June in 2021, Dawan Mining produced 419 kg of gold.

New Shaochenzhou Antimony Industry was established on April 15, 2004, with a registered capital of RMB 22 million, mainly engaged in the acquisition, processing and sales of antimony, gold, silver, lead, zinc and arsenic. In 2020, the new Shaochenzhou antimony industry to replace the original fire smelting slurry electrolysis process to prepare refined antimony project is in the experimental stage, the production of cathode antimony content of 279 tons, gold content of 45 kilograms. The project was completed and put into production on February 27, 2021. In the first half of 2021, the new Shaochenzhou antimony industry produced 978 tons of antimony and 78 kilograms of gold in the cathode.

The impact of temporary production suspension and production reduction on the company:

Huangjindong Mining, Dawan Mining and New Shaochenzhou Antimony Industry strictly control office power consumption, make use of the shutdown time for equipment maintenance, improve ground infrastructure, implement technical renovation projects, etc., to ensure that the resumption of production can fully and efficiently meet various production requirements.

In view of the fact that the full resumption of production time of Huangjindong Mining, Dawan Mining and New Shaochenzhou Antimony Industry cannot be determined for the time being, it is expected to have a certain impact on the production and operation of the company. The company will actively maintain communication with the local government on issues related to power cuts, and continue to follow the progress of this power cuts, timely fulfill its information disclosure obligations in accordance with relevant regulations, and respectfully invite the majority of investors to pay attention to investment risks.