Yintai Group executives visit 'Yintai Resource Base' - Inner Mongolia Yulong Mining

Not only the market, but even sister companies find Yintai Resources - Yulong Mining - very mysterious. The Yintai Group's 2014 first half annual meeting and "Shengxintang" were held from July 31 to August 3 at the location of the hot springs town of Rehui and Yulong Mine in Inner Mongolia. A total of 34 leaders from various business units of Intime Group participated in this four-day event, covering a distance of nearly 2500 kilometers. Yintai Resources - The mysterious veil of Yulong Mining and the development of the resource sector will also slowly unfold.

8 On the 2nd of the month, Mr. Shen Guojun, Chairman of China Yintai Investment Co., Ltd., led a delegation of Yintai Group management personnel to visit and inspect Inner Mongolia Yulong Mining Co., Ltd. located in Xiwuzhumuqin Banner. After arriving at Yulong Mining, they were warmly welcomed by Yulong Mining and the local chief inspector. Mr. Shen Guojun and his delegation visited the 2000t/d beneficiation plant, accompanied by Mr. Yang Haifei, Chairman of Yintai Resources Company, and relevant personnel from Yulong Mining, despite the long journey. Starting from the first stage of crushing in the production process, they visited the grinding crushing flotation dehydration process in sequence. Yulong Mining's technical personnel provided a detailed explanation of the process, which gave Yintai Group executives a further understanding of the mineral production situation and a deep impression of Yulong Mining.

Yulong Mining is the main asset of Yintai Resources (holding 76.67% of the shares), mainly engaged in the mining and sales of silver, lead, and zinc ores. Yulong Mining currently holds two mining rights and four exploration rights. The Hua'aobaote Silver Lead Mine in Xiwuzhumuqin Banner, corresponding to the mining rights, is a silver polymetallic mine. The ore contains three metal elements: silver, lead, and zinc, with a reserve of 31.2968 million tons, meeting the national standard for large-scale mines. The silver grade is as high as 379-399g/t, and the recoverable reserves are about 4500 tons, with abundant reserves. At the same time, the mine has a mining life of more than 30 years, and there is a wide space for future resource increase, which can ensure the long-term performance growth of the company. And the total exploration rights are 41.11 square kilometers, with broad prospects for future exploration.

At present, the company's existing ore mining scale is about 3400 tons/day. Due to various reasons, the actual number of operating days per year is relatively short, and its production capacity has not been fully utilized. Recently, the company conducted a bidding process for the excavation and construction of the main and auxiliary shafts of Yulong Mining, mainly to increase mining capacity and drive performance growth. In the past three years, despite the continuous low prices of non-ferrous metals, Yulong Mining has maintained a gross profit margin of around 90% and a net profit margin of over 65% thanks to its advantage in high-grade resources.

Yintai Resources' asset quality is rare in the A-share market. Currently, the company has a total share capital of 1.086 billion shares, with total assets of 4.785 billion yuan and net assets of 4.566 billion yuan as of the end of 2013. The company has no bank liabilities and has over 1 billion yuan of its own funds and 10 billion yuan of bank credit.

Yintai Resources is positioned for investment, exploration, and selection of non-ferrous and precious metals. Currently, the extracted elements include silver, lead, zinc, and newly discovered elements such as copper, gold, tin, and antimony. The core asset is the Hua'aobaote silver lead zinc mine of Yulong Mining, a holding subsidiary located in Xiwuzhumuqin Banner, Xilingol League, Inner Mongolia. The silver mine has a selected grade of about 380 (g/t), and the lead+zinc selected grade is about 7%, which is a rare rich mine in the month. Yulong Mining's gross profit margin is about 90%, which makes Yintai Resources' gross profit margin in the first quarter of 2014 92%, net profit margin of 70%, and ROE of 20% in 2013, demonstrating strong profitability. The mine has a reserve of 31.2968 million tons of ore, with a mining period of about 32 years, meeting the national standard for large-scale mines. The mine has a long service life, and combined with the company's strong mineral processing capabilities, it has a strong profit foundation. The total exploration rights are 41.11 square kilometers, with broad prospects for future exploration. According to the company's announcement, the company will gradually develop newly discovered copper mines based on the existing Yulong mine and increase investment in other exploration rights.

With the mission of serving shareholders and repaying the society, Yintai Resources is a pilot unit of harmonious mine construction in Inner Mongolia Autonomous Region. For many years, Yulong Mining, the holding company, has been a major local taxpayer, and has given strong support to local governments and surrounding herdsmen. The relationship between government and enterprises and between herdsmen and enterprises is harmonious. The company has poured love and taken responsibility, continuously providing disaster relief, donations, poverty alleviation, and actively investing in infrastructure such as electricity and roads, with a total investment of nearly 30 million yuan, composing a new chapter of national unity.

In the future, Yintai Resources will continue to explore mineral resource projects that are suitable for its own characteristics in the field of mineral resources, based on its existing mining and exploration rights, and make reasonable use of its advantages such as funds and technology. It will increase its efforts to obtain mineral resources, broaden project investment channels, and expand colored metal varieties, striving to develop the company into a first-class large-scale mining enterprise in China, and return to shareholders and society with better performance. Yintai Resources is like a rising star in the mining industry, emitting increasingly brilliant light, and its future will surely be even better!