Understanding the Market | WanGuo Gold Group Rises Over 13%, Company Jinling Mine May Still Have Potential for Resource Increase, Future Growth Space is Vast
The stock price of Universal Gold Group rose by over 13%, closing at HKD 24.6, with a trading volume of HKD 164 million. It is expected that revenue in 2024 will reach RMB 1.876 billion, a year-on-year increase of 42.6%. The resource volume of Jinling Mining has increased to 232 tons, with a potential annual output exceeding 10 tons in the future, indicating significant growth potential. In the short term, gold prices are influenced by macroeconomic data and geopolitical risks, with market expectations that the Federal Reserve may restart the interest rate cut cycle
According to the Zhitong Finance APP, GuoHua Gold Group (03939) rose over 13%, as of the time of publication, up 13.1% to HKD 24.6, with a transaction volume of HKD 164 million.
In terms of news, GuoHua Gold Group achieved revenue of RMB 1.876 billion in 2024, a year-on-year increase of 42.6%; the profit attributable to the company’s owners increased by 71.6% to approximately RMB 575 million. The revenue growth was mainly due to increased sales from the Jinling Mine. Minsheng Securities pointed out that by the end of 2024, the resource volume of the Jinling Gold Mine has increased to 232 tons, and there may still be further potential for resource increase in the future. Based on an estimated mine lifecycle of around 20 years, the future annual output of the Jinling Gold Mine could exceed 10 tons, indicating significant growth potential.
CITIC Futures believes that in the short term, macro data and geopolitical risks are in a tug-of-war, causing gold prices to fluctuate. This week, the U.S. will release data on JOLTS job openings, Personal Consumption Expenditures (PCE), and non-farm employment. Although optimistic trade sentiment dominates the short-term market, the rising geopolitical risks, coupled with Trump's inconsistent statements on the Russia-Ukraine issue, exacerbate uncertainty. Additionally, central banks considering increasing gold exposure (the Central Bank of Kenya is actively considering increasing gold reserves) may limit the downside potential for gold prices. The market generally expects that the Federal Reserve may restart the interest rate cut cycle in June, limiting the upside potential for the U.S. dollar, but the Federal Reserve's policy path and U.S. macro data (such as non-farm employment and PCE) will remain key variables
