Shandong Gold to guarantee $220m in subsidiary debt

Shandong Gold Mining Co., Ltd. (SSE: 600547) announced it will provide guarantees totaling $220 million for its wholly-owned subsidiary, Shandong Gold Mining (Hong Kong) Limited. The guarantees support a $100 million credit facility from Mizuho Bank, Hong Kong Branch, and a $120 million credit facility from DBS Bank (Hong Kong). The loans are intended for general working capital and refinancing purposes. As of the announcement date, the company's existing guarantees for the Hong Kong subsidiary totaled $135.9 million, representing 29.47% of Shandong Gold Mining's net assets. The total amount of external guarantees accounted for 9.43% of the company's total assets in 2023, and 38.38% of net assets attributable to shareholders. The guarantee period extends three years from the signing date of the respective agreements. Shandong Gold's board of directors approved the guarantee, stating the subsidiary's financial position and the guarantee's risk profile are manageable.