Haitong International** Group***Xianlong Chen and Jiayao Gan recently conducted research on Yintai ** and released a research report "Company Announcement Comments: The First Overseas Expansion Territory Gradually Landed", and this report gives an overweight rating to Yintai ** and believes that its target price is 1665 yuan, the current stock price is 148 yuan, the expected range of ** is 125%。
Yintai ** (000975).
Investment Highlights: The Company intends to acquire Osino Resource. Yintai ** intends to establish a wholly-owned subsidiary in Canada through its subsidiary, Hainan Shengwei***, at a price of 1C$90** for the acquisition of all of Osinoresource's existing outstanding and outstanding common shares and shares to be diluted. The transaction value of the acquisition is approximately 3$6.8 billion (CAD CNY = 5..)33 calculations, corresponding to about 19RMB 6.1 billion), after the completion of the acquisition, the company will hold 100% of the equity of Osino through the buyer.
The mine is rich in resources and still has exploration potential. Osino Resource's main tenements include the Twin Hills Project mining rights and the Ondundu Project prospecting rights in Namibia. The Twin Hills project has gold reserves of 6686 tonnes at grade 104 gt (May 2023); Gold resources 9921 tonnes at grade 109 grams and tons (March 2023), and the fault structure of the metallogenic zone where Twin Hills is located is 100 kilometers long, of which 70 kilometers are within the scope of existing mining rights and prospecting rights, and there is a large prospecting space. The Ondundu Project has an Inferred Resource of 2799 tonnes ** at a grade of 113 grams, and at the same time, the project has newly discovered the Eureka prospect, which is the next key exploration and reserve increase area.
The planned annual production capacity is 5 tons, and it is expected to be put into operation in 26 years. According to the company's acquisition announcement, citing the feasibility study report prepared by Lycopodium announced in June 2023 for the Twin Hills gold mine project, the design capacity of the concentrator plant at the Twin Hills project is 5 million tons per annum, and the constructive capital expenditure is 3$6.5 billion, planned production for 13 years, open-pit mining, stripping ratio within mine service life 464 tons of tons, through gravity separation + carbon leaching + dry drainage process, it is expected that the average annual gold production during the life of the mine is 504 tonnes at a total sustaining cost of $1011 per ounce. The Twin Hills gold project has completed the purchase of land for construction and is scheduled to commence construction work in July 2024 and start production in 2026. After the acquisition of the Twin Hills Gold Mine Project, the Company will further optimize the construction, production time and output of the project, and promote the project to complete construction and put into production on time.
In line with the company's strategic development outline. According to the development strategic planning outline released in 23, the company plans to achieve a mineral gold output of 15 tons and gold resources and reserves of 300 tons by the end of 2026. We believe that if the acquisition is successfully implemented, the company's resources will expand to 3011 ton, which is basically in line with the company's target at the end of 26 years.
From the perspective of planning, the company proposes to "invest in mergers and acquisitions to 'expand and develop', focus on the layout of important overseas metallogenic belts, and achieve volume, scale expansion and sustainable development". From the actual situation, the company from the senior management team to the mine front-line management team, the company basically retains the original Elado talents, with an international vision and international capabilities, we believe that the company has the advantage of overseas operations, with the gradual landing of the first overseas expansion territory, the company's scale is expected to expand steadily.
Earnings** and valuations. We expect that in the next three years, with the gradual commissioning of the expansion project, the company's net profit will be in a period of rapid growth. We expect the company's 23-25 year EPS to be. 62 and 0$85 shares. Referring to the valuation level of comparable companies, it gives a PE valuation of 27x in 2024 (originally 31x in 2023), corresponding to a target price of 1665 yuan shares (-2%), maintaining an "outperform" rating.
Risk warning: the progress of expansion is less than expected; The Fed raised interest rates more than expected; Rising raw material costs.
*According to the calculation of the research report data released in the past three years, the research team of GF**Gong Shuai has conducted in-depth research on the stock, and the average accuracy of the past three years is 6966%, and its **2023 attributable net profit is 153.8 billion, and the **PE converted according to the current price is 2672。
The latest profit** breakdown is as follows:
A total of 19 institutions have rated the stock in the last 90 days, with ** rating 17 and 2 overweight ratings; The average institutional price target over the last 90 days is 1783。
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