Gelonghui, March 19, China's Hanwang (03788.HK) announced that in terms of the results of the year ended December 31, 2023, the Group's domestic business focus in 2023 was to stabilize production and achieve an annual iron concentrate output of 1.0 million tons, an increase of 29.37% over the previous year; the annual output of high-purity iron was 871,000 tons, an increase of 31.17% over the previous year. Continuous and stable production has ensured a significant increase in the Group's product sales volume and sales revenue, while reducing the cost of a single ton product. The Group turned a loss into a profit for the year, recording annual profit of RMB 151 million (loss of RMB 53.1 million in 2022).
In 2023, all environmental approvals for the company's Mt Bundy gold project mine development in Australia's Northern Territory were obtained, and the final feasibility study for the project was completed in November 2023. According to the report, based on 3 million ounces of gold resources and 1.64 million ounces of gold reserves, the average annual output reached 170,000 ounces of gold (about 5.5 tons) in the first 5 years of the 13-year initial mine life. The project is one of the gold mining projects with the lowest divestment ratio. The financial model shows that the development plan can achieve steady financial indicators and returns. For example, the payback period is a little over 2 years, and the internal recovery rate is greater than 40%, which proves that the project is a long-lived, high-profit gold project, which greatly enhances the value of the Mt Bundy gold project.
Han Wang Australia, a subsidiary of the company, obtained the main interest in the Western Australian Cygnet gold mine project through a capital increase in 2023. The project had about 1.18 million ounces (36.7 tons) of gold resources at the end of 2023. In 2024, the Group will focus on exploration, mine production and construction feasibility studies, and government approval work for the Cygnet gold mine project.
In October 2023, Maogong Iron Ore was granted a new mining license. The mining area was expanded from 1.9833 square kilometers to 2.4251 square kilometers, adding 16.32 million tons of iron ore resources to the certificate. The approval of this mining license lays a solid foundation for Maogong Iron Ore to continue the life of the mine and for the Group's iron ore business to continue to develop for a long time.