International Resources Group Will Increase 250 Thousand Ounces Of Gold Production Capacity

　　 International Resources Group Owen L Hegarty12, vice chairman of 01051.HK (hereinafter referred to as international resources), said at its annual shareholders meeting on July 8, its Indonesian company. Martabe gold silver mine The project will be put into operation in December next year. Golden year capacity It will reach 250 thousand ounces.

Martabe gold and silver mine project, the core asset of international resources, was purchased from Australian miner OZ MINERALS in June last year at a cost of 220 million US dollars. At present, international resources hold 95% of the project's rights and interests. International resources resumed the project in the second half of this year. After months of exploration, the gold reserves of the mine have increased to 3 million 300 thousand ounces.

Owen emphasizes that the current cost is 3 million 300 thousand ounces, and the cost is only 67 dollars per ounce. According to the average purchase price of 10 gold and silver mines this year, the average value of the purchase price is 580 dollars per ounce, and the reserve value of the project has reached US $1 billion 900 million.

Ke Qinghui, vice president of international resources, said that the company has completed more than 75% of its projects and procurement. The Martabe project currently covers only 5% of the total mineral area, and it is expected that there will be room for further production in the future.

In terms of finance, international resource chairman Zhao Du told reporters that the cost of the entire Martabe project is about $400 million, of which 120 million US dollars have been paid, and the remaining $300 million will be paid by the company's existing funds. So there is no plan for raising funds at present.

"We will continue to pay attention to Southeast Asian Resources in the future. If we buy the project, we will consider refinancing." Zhao Du said. He said that the strategic goal of the company in the next 5 years is to raise the overall gold output of the company to 1 million ounces by acquiring gold assets with potential for development in Asia, Australia and the Pacific.

For the future gold price trend, Owen said that the US dollar weakness continued to push up the price of gold, and the supply of gold is less than demand at present. In addition, he believes that the global central bank stopped selling gold and became a net buyer of gold, which further widened the demand gap, and the shortage of gold would further push up the price of gold.

"I can't predict the level of gold price in the future, but it is certain that the price of gold will be higher and higher in the next 10 years or even 20 years, in short, it will not be lower than the current level." Owen told the finance and economics reporter.

According to the third quarter gold demand trend report released by the world gold association in December 17th, the total demand for gold reached 922 tonnes, up 12% from the same period last year. Among them, retail investment reached 243 tonnes, up 25% over the same period last year. The accumulation of gold bullion increased by 44% over the same period last year, the most important contributor to the total demand growth. Net retail investment in the quarter hit a record value of $9 billion 600 million, an increase of 60% over the same period.

Data show that in 2009, the global supply of gold was about 4100 tons, while authoritative agencies predict that gold supply will remain at the 3500 ton ~3600 ton range after the callback in the next 5 years.

International resources is a local company in Hongkong. By December 7th, the company had a market value of HK $7 billion 600 million, or about US $980 million. JP Morgan's stake in the company has increased from 5% at the beginning of the year to 7.01%.