Movement Alert|LINGBAO GOLD Rises 5.11% in Regular Trading, Gold Sector Rally Combined with Major Acquisition Catalyst

Market Focus09-16 10:47

On September 16, LINGBAO GOLD rose 5.11% in regular trading, trading at HK$23.94/share, with turnover of HK$130 million.

On the news front, the gold sector rallied broadly, with peers Chifeng Gold up 4.43%, SD Gold up 3.77%, and Zijin Gold International up 3.4%, reflecting strong sector-wide momentum. At the company level, LINGBAO GOLD recently announced that its wholly-owned subsidiary has entered into a share sale agreement with St Barbara Limited to acquire 50%-1 shares of Tabar Islands Holdings Pty Ltd for AUD 410 million in cash, along with corresponding royalty obligations. Upon completion, the target company will become an indirect wholly-owned subsidiary, significantly bolstering overseas mineral resource reserves. An independent valuation using discounted cash flow methodology valued the stake at USD 400 million. The transaction remains subject to regulatory approvals and other conditions.

The company also reported strong interim results, with net profit attributable to shareholders reaching RMB 972 million, up 46.45% year-over-year, while gross margin improved from 14.61% to 23.54%.

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