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Zijin Mining

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September 17, 2024 at 9:40 AM (MDT)|Broadmoor Hotel & Resort

Shaoyang Shen

Deputy President

Mr. Shaoyang Shen joined Zijin Mining Group in 2014 and is currently a Deputy President of the Group. He has 17 years of experience in the mining industry, having held senior executive roles in operations management, strategy, M&A and corporate development across various regions. He has also served as a board member for TSX and ASX listed mining companies. Mr. Shen holds a Bachelor of Economics from Xiamen University, a MBA from The National University of Singapore and a Master of Management and Professional Accounting from University of Toronto.

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Let's get started with the next presentation. So the next company to present today would be Z Mining and to talk to us today on Z. We have Vice President Xo Yang Chen. Yeah, thank you, Rob. Good morning, ladies and gentlemen, my name is Shao Yang. I'm a president of Tin Mining Group. It's good to come back to Colorado Springs and it is my pleasure to speak in the gold for them today, I would like to thank conference organizers for providing this great opportunities. I like to call your attention to our personal statement. So first, I would like to make a brief introduction about Jin. Apparently not everybody in the audience knows Tin well, and I believe that we are the only company that is headquartered in Asia, particularly in China that speaks today. So the company started with a very humble beginning as a single gold mining company in a very remote area in the southern Chinese province of Fujian. And the company was able to develop my into China's largest producing gold mine. And during the peak years, the mine was able to produce up to 600,000 ores of gold. At that time, it was the largest in the country. And later, the company used the proceeds generated from the mind to expand to other parts of the country. So by mid 2000 Zhijian will become the largest, one of the largest metro mining companies in China. And still a lot of people identify Jin as a single gold as a gold company. But the company really had become substantially more diversify and also to some people that has been identified as a state owned company. The reason was that that might I mentioned was 100% owned by the local government. So pretty much it would compare to the equivalent of the city of Colorado Spring. So after three hours of fundraising including IPO in Shanghai's drug change and in Hong Kong's exchange, the government of the local, you know, the the local county, their shareholding was diluted to 23%. So it is still our largest shareholder. But you think that if Colorado city government could own 23% the size of the, they will be very happy. So now we have become a multinational mining company with operations and development projects in 16 countries across Asia, Europe, Africa, Oceania and South America. And the company is now one of the world's largest producers of copper, gold and zinc. And it is also becoming an emerging producer of lithium. The company is this in Shanghai Stock Exchange and Hong Kong Stock Exchange with the recent market cap of approximately $55 billion. The company has built a strong diversified and future facing matters portfolio in recent years. Although gold continues to be one of the largest biggest circus and we continue to pursue the growth in our gold sector. Production of other metals, particularly copper has grown faster and become more important to the group's financial performance. In year 2023 coal production contributed 47% to our overall profit. And with the ongoing trend of global transition to clean energy, we believe matters like copper and lithium will play a very important role and market demand for those matters will continue to increase for years to come. So we now have a more balanced exposure to precious metals and critical industrial metals. And we'll be more resilient in terms of macroeconomic uncertainties which diversified and well allocated resource portfolio. We are making sure that we will have robust financial performance in the future aspires to be a leading global mining company and is something we take seriously. We have implemented a integrated, sustainable and deliver policies and practices to address environmental, social and corporate government issues that we in the industrial face. First and the utmost, first and foremost, we need the support of the community where we operate is paramount to the success of our operations. As a lot of companies do, we have made significant contribution to facilitate social and economic development for the host communities and make efforts to fulfill our obligations in community development, employment creation and sourcing from local suppliers. We also had developed programs to improve local education, health care and essential infrastructure construction. We appreciate that effort. Our efforts in general are well recognized. We are taking active steps as a part of our global part of global actions against climate change. The company has implemented methods across the whole group to reduce the use of fossil fuels in our mines and plants and promote the use of renewable energy and low carbon technology as much as practical, politically possible. By 2030 more than 30% of the energy we use in our plans and mines will be from renewable sources. One of the most important indicators we monitor is the green house gas emission intensity, which we have managed to reduce more than 1% annually three years in a row where we have improved water. Well, we have improved our water recycling rate from 91.8% to 94.8% just in the past three years. So even though we have become more diversified, gold is still a key cornerstone for the company. And as I said, we continue to pursue growth in the gold production in 2023. For the first time, we produce over 2 million ounces in the history of the company. Total production for the year was 2.1 million ounces. A 22% increase from 2022 production guidance for year 2024 is between 2.3 to 2.4 million ounces. We are aiming for 8% growth compared to our leading global peers like New and and Barack. We don't have the so called to one gold assets and have to rely on significant number of rapidly smaller size of mines in our countries. So most of the gold mine we operate, produce between 150 to 300,000, owns this and apparently we have to work harder to achieve our production targets. China is still the largest producing country for us, accounting for about 32% of total production. And our three gold mines in three South American countries combined contributed 28% in year. 2023 copper has become the largest and fattest growing business. Cir on average, we have an annual production growth rate of more than 20% in the past five years. So in the past five years, in aggregate that our copper production grew more than 200%. In 2023 we achieved a milestone of producing just over 1 million tons of copper and become one of the top five copper companies globally. And I believe that we are the largest copper producer among the gold seniors. Our coal production will continue to grow, although apparently with a more moderate rate for 2024 our target is to produce 1.1 million tons of copper. And unlike gold, which I said we rely on mostly small to missile mice. In quite a number of countries. Our copper production mostly comes from just three countries. China accounting for 43% DRC, accounting for 30% and 2030 or 24% in year 2023. And we operate seven large scale copper mines in these three countries. So in the first half of 2024 the company produced 1.1 million ounces of gold. A 9% year over year growth mostly in line with our production plans, which biggest growth contribution coming from the British Caro mine in Columbia, the Paddington gold mine in Australia and the Long Land Zijin gold mine in China. We believe we are on track to achieve our annual production target of 2.3 to 2.4 million ounces for this year. And for copper, we produce 520,000 tons of copper and for the first half of year. And we continue to be one of the top five copper companies in the world. The production the first half year production represents 5.3% year over year, slightly behind our production price. And mostly due to the power supply issues in DRC that impacted both compromise, we operate in that country but our mines in China and in Serbia in general, you know, operated normally and contributed to the growth overall growth for the half half of the year as mentioned before mine in Columbia and and Paddington mine in Australia are among the major mines that have contributed to the growth of our copper production in the first half, first half of this year. Even though facing significant amount of operation, challenges including illegal mining activities. The political mine in Colombia moves ahead with production expansion plan and is expected to produce over 300,000 ounces. A historic high for the mine. The Paddington mine operated by our Australian subsidiary Gordon Goldfield has been in operation for decades but also has been pretty much ST stagnant in growth in recent years. But with a recent successful commissioning of a 5 million tons per year low grade or the hip projects in the first, in the first of the year, production of the mine is expected to ramp up to to about 250,000 orches per annum. Jurong copper mine and Doohan copper and gold mine. We operate are two of the China's largest politician mines in the first half of 2024. Both mine operated pretty well and are on track to deliver annual production targets particularly the Jurong mine holds more than 25 million tons of copper resources and have enormous growth potential. The mind is undergoing the second phase of expansion and upon completion of inspection the mind is expected to have the capacity of producing over 300,000 tons of copper per annum. In DRC, we operate two major copper mines. Number one is Komar Kura mine that is join the own and jointly manage with Evan how mines and the second one is Tjian majority own co commu copper mine. So as as probably a lot of people know that comma Kakuda copper mine with 43 million tons of copper resources is one of the largest producing copper mines in the world in 2023. On 100% basis, the mine produced over 390,000 tons of copper. And the mine recently successfully completed the phase three expansion and the commissioning of a 150,000 tons per year concentrator combining production of phase one, phase two and phase three. The mo is expected to produce over 600,000 tons per annum. Apparently that we're making it one of the largest in the world. And in Serbia, we operate two copper mines. The the Kupa Packy copper gold mine which is 100% Jong and was brought into production in the second half of 2021. And the Corporal District that majority owns and operates these two mines combined will produce over 300,000 tons per year. 2024 making Serbia the second largest copper producing country in Europe. So lower j of these two mines have relatively lower grades but provide very good upside potential for increasing production in the near future. So both mines under under are now conducting feasibility study for caving for the for the lower part, for lower zone of the mine to utilize resources in the lower zone. Ok. Earlier this year, we released a five years production plan laying our production guidance for years 2024 to 2028 many analysts in the market. We see this plan to be very ambitious, but we believe this is something that is deliverable under this five years of production guidance, we are targeting annual production growth up 8% in both our gold and copper sectors. But apparently in terms of the growth rate comparing to the double digit annual rate we achieved in the past five years, these rates appear to be relatively, you know, moderate, but the new target are based on the historical milestone, you know, as I mentioned, we achieved in year 2003, the company actually is also a major producer of zinc and silver. So production has been relatively stable in recent years for these two matters and they will continue to contribute materially to the company financial performance. Additionally, that Jin is also becoming an emerging lithium producer with three lithium projects under construction. So next and finally, I'm going to be touching the topic of the future of the mining industrial in light of recent signs of de globalization and segmentation of global supply chains. As most of us agree that the International Corporation has been key driver for the growth of the industry in the past many decades. And as we all know, mineral resources worldwide are distributed on even the only one hand developed countries and China do not mine much of the minerals in their own countries but consume most of the land. On the other hand, a lot of resource rich countries, particularly developing countries need capital investment, mining and industrial technology and operational expertise for more advanced economies. So integral global supply chain instead of segmentation of markets is important for robust growth of the industrial as well as to the general health of the world economy. Internationally efficient capital markets are imperative for funding of my developments around the growth, New York, Toronto, London, Sydney and Hong Kong stock exchanges play significant roles. It is our view and I think that most of our peers in industrial agree that market based cross border transactions with no political interference have benefited all parties and contributed to better allocation of resources for project development and mining operations. We believe international Corporation first, best interest of all stakeholders including local communities, governments employees and a priority shareholders. And we believe that this practice should be allowed to continue functioning freely as it has been. So this is the end of my presentation. Thank you for your time. And I guess, I don't know how much time I left. Yeah. We don't have any time for questions but.


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