Western Region Gold Co.,Ltd. (601069) subsidiary halts production for maintenance!
On the evening of September 11, Western Region Gold Co.,Ltd. announced that its wholly-owned subsidiary Xinjiang Hongfa Ferroalloy Co., Ltd. (hereinafter referred to as "Hongfa Ferroalloy") operates 4 units of 12,500KVA semi-enclosed submerged arc furnaces, using mixed manganese ore, coke, silica stone, electrode paste and other materials as raw materials, with an annual production capacity of 80,000 tons of ferromanganese alloy. The company's existing electric furnaces have been operating for an extended period, with severe oxidation and structural damage in various components, and aging equipment with declining operational efficiency. In view of the above circumstances, after company research and according to the annual production and operation arrangements, the company agrees to enter furnace shutdown for maintenance after consuming existing raw material inventory. The maintenance period is expected to last until the end of this year, and the decision on whether to resume production will be made based on actual maintenance conditions later.
Hongfa Ferroalloy's audited main financial data for the most recent year (January-December 2024) shows operating revenue of 546 million yuan, accounting for 7.8% of the company's total operating revenue; net loss of 31.46 million yuan, while the company's net profit was 290 million yuan.
Hongfa Ferroalloy's main financial data for the most recent period (January-June 2025, unaudited) shows operating revenue of 127 million yuan, accounting for 2.53% of the company's total operating revenue; net loss of 38.21 million yuan, while the company's net profit was 144 million yuan.
Western Region Gold Co.,Ltd. stated that the timing of Hongfa Ferroalloy's production resumption remains uncertain, and the impact on the company cannot be accurately estimated. Except for Hongfa Ferroalloy's production halt for maintenance and other disclosed matters, all company production and operations are normal, and this production halt for maintenance will not affect the company's main business. The company will closely monitor the subsequent progress of Hongfa Ferroalloy and fulfill information disclosure obligations in a timely manner according to relevant regulations.
Western Region Gold Co.,Ltd.'s main business includes gold mining, beneficiation and smelting, as well as iron ore mining and beneficiation, and chromite ore mining. The company's main products include gold, iron concentrate, and chromite ore.
As a controlling subsidiary of Xinjiang Non-ferrous Metal Industry Group, Western Region Gold Co.,Ltd. possesses China's most advanced bio-oxidation gold beneficiation technology and is currently the largest modern gold mining, beneficiation and smelting enterprise in western China. It owns major gold production mines including Hatu Gold Mine, Axi Gold Mine and Hami Gold Mine under Yili Company, as well as Urumqi Tianshan Star Precious Metal Smelting Co., Ltd., a gold refining enterprise certified by the Shanghai Gold Exchange.
In the first half of 2025, Western Region Gold Co.,Ltd. produced 5.9 tons of gold (including gold concentrate and calcine metal content, of which 5.57 tons of standard gold was produced), completing 60.24% of the initial annual plan, an increase of 1.36 tons compared to 4.54 tons in the same period last year. It produced 40,400 tons of electrolytic metallic manganese and 159,700 tons of manganese ore.
During the period, the company achieved operating revenue of 5.03 billion yuan, net profit attributable to shareholders of 154 million yuan, industrial output value (current price) of 5.22 billion yuan, industrial added value of 566 million yuan, actual payment of various taxes and fees of 160 million yuan, and total assets of 9.13 billion yuan.
Driven by rising international gold prices, Western Region Gold Co.,Ltd.'s stock price has surged significantly since September, reaching a historical high of 33.66 yuan per share during trading on September 10, with gains exceeding 80% over 10 trading days, including 5 limit-ups over 7 trading days. However, on September 11, the stock price retreated slightly, closing at 31.99 yuan per share.
Apart from international gold price factors, on August 30, Western Region Gold Co.,Ltd. disclosed an announcement regarding the completion of equity transfer and industrial and commercial change registration for acquired assets, announcing the successful acquisition of 100% equity in Xinjiang Meisheng Mining Co., Ltd. (hereinafter referred to as "Xinjiang Meisheng") under its controlling shareholder.
According to disclosures, Xinjiang Meisheng's Katbasu Gold-Copper Mine has proven total ore reserves of 25.67 million tons (including gold resources of 78.7 tons). After the project is completed and reaches full production, it will achieve a production scale of 4,000 tons per day, with annual production of 1.2 million tons of ore and approximately 3.3 tons of gold metal, offering good development prospects. Production is expected to commence in the second half of 2025.
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