courtesy SmallCap Power
In this interview from the PDAC 2019 convention, Angela Harmantas from Smallcap Power spoke with Jerry Xie, Executive Vice President of China Gold International Resources Co. Ltd. (TSX:CGG). The Vancouver-headquartered company operates the CSH gold mine in inner Mongolia and the Jiama Copper-Polymetallic Mine in the Tibet region. China’s largest gold producer, China National Gold (CNG), is a majority shareholder in the company, because of which CGG enjoys low-cost financing. Jerry Xie also explains why it’s a good time for investors to consider China Gold International, which he believes is currently undervalued in the market.
Below is the transcript.
Angela Harmanta: We're here at PDAC 2019, and I'm here with Jerry Xie, the Executive Vice President of China Gold International. Jerry, thank you so much for joining us. Give our viewers an update to China Gold International, and maybe just a quick background for those of us who haven't tuned in yet.
Jerry Xie: Sure. Sure. We are, like you said, our name is the China Gold International. The name was given in that way is because our major shareholder was the China National Gold Group. It's the largest gold producer, and a very integrated company in China. So they own us like 39%. So there's very big, very strong support from them. It's our one, it's the highlights there.
Jerry Xie: Back to China Gold International. Organically, we have two projects, two assets: One is purely gold and one is poly-metallic. Big potential is the poly-metallic, called the Jiama Mine, mainly copper and the gold and silver and the poly-metallic. And we just bring that into our commercial production last year.
Jerry Xie: And meanwhile we can see that, in the market, lots of stories, growth stories, but we believe our company is different, and we're special. Especially coming from the, right now, we are for sure it's undervalued because the people have been waiting for that without ... been awhile. Cause we spent lots of time for the expansion, from a 6,000 tons per day to 50,000 tons per day. That's a huge jump. So we need some time ramping it up to the fully loaded. So, that's why right now is perfect time if you want to invest in some opportunity, we are here. Right?
Jerry Xie: Yeah. So, that one's organically story we just mentioned, and we've been in China, but right now we are aggressively looking for things overseas of China. We've been talking about this topic for years, but for this year we are gonna take some serious step. We want to send out this message to the market, and we're looking for the copper and the gold because we are China Gold right? But also a producer of copper. So we're looking at things overseas of China mainly like in Canada, Australia, they stand out for a stable jurisdiction. Or somewhere there is a reasonably stable jurisdiction, decent size. We're a very strong financial position. Because we have raised our major shareholder support, we'll have very low-cost financing access. So money we can say isn't normally the issue for us when we're looking for the good quality asset.
Jerry Xie: Okay first we're big potential. Right? So, if we're uploaded we're looking at like 176 million pounds of copper, and also the gold reach some level. So, our market value would be doubled. So, we'll put us a mark post there. Look at our PB ratio that kind of mark pole is for sure under valued. And I also, with the support of our major shareholder, like I said, which gives us ... by the way the credit rating is the Triple B Minus with the support because they are a major share holder, they are Triple B. So, we have the low financing cost access to make everything possible. That's the attractive thing. And also plus we are looking for things we can make it happen very quickly if they really see the right things there meet our criteria.
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