Shandong Gold outlines global hedging, subsidiary investments, and loan guarantees

Shandong Gold Mining Co., Ltd. announced its controlled subsidiary, Shandong Gold International, will engage in commodity futures, options, and foreign exchange hedging. This initiative, with a maximum daily contract value of RMB 1,600,000 and a margin cap of RMB 120,000, aims to mitigate price and exchange rate fluctuations affecting its precious and non-ferrous metals business until December 31, 2026. This aligns with the company's strategy to enhance risk management using its own or self-raised funds.

Shandong Gold International plans to increase its investment in wholly-owned subsidiary Hainan Shengwei Trading Co., Ltd. by RMB 140,000 to strengthen operational capabilities and support the Osino Gold Mining and Exploration project. Hainan Shengwei's registered capital is RMB 50,000. Additionally, Shandong Gold International will provide guarantees totaling RMB 429,000 to its subsidiaries, including RMB 36,000 to Hainan Shengwei and RMB 73,000 to Sino Gold Tenya (HK) Limited, to support their operational needs and financing efficiency.

The company's board also approved the temporary use of idle raised funds amounting to RMB 50,000 for working capital for up to 12 months, leveraging existing funds to reduce financial costs. Shandong Gold Mining will also provide a $200,000 loan guarantee for its wholly-owned Hong Kong subsidiary with HSBC and a $500,000 loan guarantee with China Merchants Bank to support its operational activities. All resolutions, including additional temporary proposals, were approved by the board on December 8, 2025.