CGN Mining Company (Stock Symbol – HKG: 1164, OTC: CGNMF) operates as an investment holding company.
The Company was incorporated in the Cayman Islands as an exempted company with limited liability. The shares of the Company are listed on the Stock Exchange. Its parent company is China Uranium Development, a company incorporated in Hong Kong and a wholly-owned subsidiary of CGNPC-URC, which is in turn a subsidiary of CGNPC. CGNPC is the ultimate parent company of the Company. Both CGNPC-URC and CGNPC are state-owned enterprises established in the PRC.
The address of the registered office of the Company is located at Cricket Square, Hutchins Drive, P.O. Box 2681, Grand
Cayman KY1-1111, Cayman Islands and the principal place of business in Hong Kong is at Room 1903, 19/F., China
Resources Building, 26 Harbour Road, Wanchai, Hong Kong.
The company operates through three segments: trading of natural uranium, property investments (leasing), and other investments (joint ventures and an associate).
The Group’s operations are located in the HKSAR, PRC, Kazakhstan, Canada and UK.
The Natural Uranium Trading segment conducts trading in natural uranium.
In 2015, CGN Mining made a strategic investment in Fission Uranium. The initial ownership stake in Fission Uranium was 19.9%, and as of 31 December 2020 sits at 16.74%.
The transaction also provides Fission Uranium with an offtake agreement with CGN Mining after commencement of commercial production for the Patterson Lake South (PLS) project.
This project is located near the NexGen Energy Arrow Deposit along the Patterson Corridor.
The offtake agreement provides CGN Mining with the purchase of 20% of annual uranium production from PLS. Further, CGN Mining has the option of purchasing an additional 15% of annual production at current terms.
In addition, CGN Mining has a 49% interest and off-take rights of products in Semizbay-U, as well as wholly-owned subsidiaries Beijing Sino-Kazakh Uranium Resources Investment Company Limited, CGN Global and CGNM UK Ltd..
Natural Uranium Trading Business
For the year ended 31 December 2020, the Group achieved revenue of HK$2,859 million from natural uranium trading, increased by 38% as compared to 2019. Trading revenue from sales of natural uranium products from mines owned by Semizbay-U was HK$425 million, representing an increase of 12.5% compared to 2019 (2019: HK$377 million).
During the Reporting Period, CGN Global sold a total 4,168tU and realised trading revenue of approximately HK$2,434 million, with realised profit of approximately HK$60 million. Although the price of natural uranium in 2020 was still at the low point in the historical cycle and face to face communication with customers was impracticable due to the epidemic in 2020, CGN Global made an active effort to grasp the opportunities and still realised significant improvement in operating performance compared to 2019.
Acquisitions of New Uranium Projects
The New Kazakhstan Uranium Project has been the primary task of the Company in recent years. During the Reporting Period, the Company had completed a round of supplemental due diligence and launched multiple rounds of negotiations with its Kazakhstan partner. The Company has reached an intention with Kazatomprom in principle to complete the transaction by 30 June 2021.
In early September, 2020, China’s State Council approved the construction of the Hainan Changjaing NPP phase 2 project and the Zhejiang Sanao NPP phase 1 project.
A total of four 3rd generation model HPR1000 nuclear power reactors will be constructed with a total investment of more than 70 billion renminbi.
The Zhejiang Sanao nuclear power phase 1 project is the first nuclear power project that accepts private investment in China.
China has 12 HPR1000 reactors under construction or approved to be built. The first reactor from this group to start loading nuclear fuel was the Fuquing unit 5, which began loading during 2020. This reactor is also the first 3rd generation reactor to be completed on schedule globally. The reactor has been connected to the grid.
Mainland China has the largest under-construction fleet in the world. CGN Group owns 5 of the 12 reactors currently under construction. CGN Group also owns 3 of the 6 to be constructed reactors approved by the Chinese government during 2019 and 2020.
China hosts the most new reactors across the globe, with 45 of the reactors under the age of 20 years.
China’s leadership has announced sweeping carbon reduction targets.
The company is also engaged via its Property Investment segment in the leasing and selling of office premises.
CGN Mining Company was founded in 1996 and is headquartered in Hong Kong, China.
The CGN Mining group is full of discussions, presentations, and company announcements. If you’re looking to be engaged, this is the place for it!
Discuss the company in more detail and dive deeper into organized conversations in the CGN Mining forum.
Previous Uranium Stock -> Centrus Energy
Next Uranium Stock -> Consolidated Uranium